Investor Presentation
September 2021 Disclaimer
This presentation may contain forward-looking statements and comments relating to the objectives and strategy of Groupe BPCE. By their very nature, these forward-looking statements inherently depend on assumptions, project considerations, objectives and expectations linked to future events, transactions, products and services as well as on suppositions regarding future performance and synergies. No guarantee can be given that such objectives will be realized; they are subject to inherent risks and uncertainties and are based on assumptions relating to the Group, its subsidiaries and associates and the business development thereof; trends in the sector; future acquisitions and investments; macroeconomic conditions and conditions in the Group’s principal local markets; competition and regulation. Occurrence of such events is not certain, and outcomes may prove different from current expectations, significantly affecting expected results. Actual results may differ significantly from those anticipated or implied by the forward-looking statements. Groupe BPCE shall in no event have any obligation to publish modifications or updates of such objectives. Information in this presentation relating to parties other than Groupe BPCE or taken from external sources has not been subject to independent verification; the Group makes no statement or commitment with respect to this third-party information and makes no warranty as to the accuracy, fairness, precision or completeness of the information or opinions contained in this presentation. Neither Groupe BPCE nor its representatives shall be held liable for any errors or omissions or for any harm resulting from the use of this presentation, the content of this presentation, or any document or information referred to in this presentation. The financial information presented in this document relating to the fiscal period ended June 30, 2021 has been drawn up in compliance with IFRS guidelines, as adopted in the European Union. This financial information is the equivalent of summary financial statements for an interim period as defined by IAS 34 “Interim Financial Reporting.” Preparation of the financial information requires Management to make estimates and assumptions in certain areas with regard to uncertain future events. These estimates are based on the judgment of the individuals preparing this financial information and the information available at the balance sheet date. Actual future results may differ from these estimates. The financial information of Groupe BPCE for the period ended June 30, 2021 approved by the Management Board at the meeting convened on August 2, 2021, was verified and reviewed by the Supervisory Board at a meeting convened on August 3, 2021. The limited review procedures relating to the condensed consolidated financial statements for the interim period ended June 30, 2021 have been substantially completed. The reports of the statutory auditors regarding the limited review of these condensed consolidated financial statements will be published following the finalization of their verification. .
2 INVESTOR PRESENTATION A cooperative bank with a diversified business model, leading positions, 01 and strong commitments to society
Delivering solid performance based on synergies and moderate risk 02 appetite
Operating with robust capital ratios, strong loss-absorbing capacity and high 03 credit ratings 04 Global and innovative issuer, committed to society
3 INVESTOR PRESENTATION 01 A cooperative bank with a diversified business model, leading positions, and strong commitments to society
4 A large cooperative banking group with a diversified business model, leading market position and clear business lines (1/2)
A structure and governance ensuring a strong commitment to the development of regional and international expertise on a long-term basis and an alignment of interests for all the Group’s stakeholders
• BPCE SA is responsible forStrategy BPCE SA, THE GROUP’S • Control and coordination CENTRAL • Group’s MLT funding INSTITUTION • Internal solidarity mechanism
• Retail Banking & 2 CORE Insurance BUSINESSES • Global Financial Services
5 INVESTOR PRESENTATION A large cooperative banking group with a diversified business model, leading market position and clear business lines (2/2) One of the 30 Global Systemically Important Banks (G-SIBs) Regional banks
#2 in France Contribution to the H1-21 Gross Operating Income(1) RETAIL BANKING & INSURANCE Business lines serving retail 21.7% of market share for customer loans(2) banking activities 22% for deposits Insurance Payments and savings(2) Financial Services 75% & Expertise
Asset & Wealth #15 player worldwide 25% Management and #2 player Euro zone(3) GLOBAL FINANCIAL SERVICES #1 European player Corporate & in real estate Investment Banking #4 worldwide in renewable energies(3) (1) Excluding corporate center and exceptional items (2) Source BDF as of March 31, 2021 (3) # : ranking in France, except when specified otherwise 6 INVESTOR PRESENTATION Retail Banking and Insurance: two large networks of regional cooperative banks with strong brands and a leading position in the French retail market (1/4) 27 million customers served through our branches and digital tools allowing the two large networks to increase cross- selling and deliver solid commercial and financial performance
14 Banques Populaires 15 Caisses d’Épargne
Deposits & Savings Deposits & Savings #1 #2 for SMEs +8.9% for individuals +4.7% #2 €341bn #1 €489bn for small businesses for local authorities June 30, 2021 June 30, 2021
H1-21 results(1) Loan outstandings H1-21 results(1) Loan outstandings
NBI €3.4bn +9.6% NBI €3.6bn +6.5% €267bn €325bn CIR(3) 61.6% CIR(3) 62.3% PbT(3) €1.0bn PbT(3) €1.1bn June 30, 2021 June 30, 2021
(1) Excluding exceptional items (3) After IFRIC 21 restatement 7 INVESTOR PRESENTATION Retail Banking and Insurance: Increased use of data resources and digital services to serve the needs of our customers and their advisers(2/4)
Data resources and digital services serving the needs of our customer advisers H1-21 key figures DATA – AUTOMATION OF THE COLLECTION AND VERIFICATION OF CUSTOMER DOCUMENTS 12 million +385K support documents transmitted online since the beginning of the year vs. 400K in 2020 customers active on mobile apps or websites at end-June 2021 +122K tax assessment notices automatically checked in H1-21 vs. 100K in full-year 2020 including 8.2m active on mobile devices (+14% vs. Dec. 20) DIGITAL – DEVELOPMENT OF VIDEOCONFERENCING SOLUTIONS WITH CUSTOMERS ≈ 80% 37,000 advisers equipped to hold meeting with customers via videoconference: +8,000 vs. Dec. 20 of principal active customers using digital channels 'Self-care’: fluid and secure operations largely adopted for our customers Digital NPS 6.6 million active Sécur-Pass customers carrying out day-to-day operations in a totally secure environment: +2.6m since the beginning of the year +90m credit transfers via mobile phone since the beginning of the year: +32% vs. H1-20 +41 +5.2m beneficiaries added: +47% vs. H1-20 +36% card transactions blocked, confirmed online vs. H1-20 Net Promoter Score Digital subscription pathways increasingly used by our customers App Store Google Play The addition of new functionalities and expansion to reach new customer segments generated more traffic on these pathways For example, consumer loans initiated via digital pathways in 2021 now represent 12% of new loan production 4.7/5 4.3/5 for the BP and 21% for the CE
#1 among Launch of Oney+: a solution including an app, an account and a Visa card that makes split payment universal universal banks and gives consumers the power to manage their spending
8 INVESTOR PRESENTATION Retail Banking and Insurance: the cornerstone of our ambitions to build market share and offer fee-driven, value-added products through our retail networks (3/4)
Breakdown of revenues in Q1-21 Financial Solutions and Expertise H1-21 results(2) 7% 3% 22% 12% Consumer credit NBI €597m Sureties & financial guarantees A full range of expertise which serves the retail Retail securities services activities of the networks and Natixis, Leasing €597m and the European ambitions Factoring CIR(3) 51.4% 23% Socfim for the payment activities 25% Other
8% PbT(3) €229m
Insurance Scope: Insurance division of Natixis
A full-fledged Premiums(1) Life insurance AuMs(1) H1-21 results(2) Bancassurer: 7.9 +7% YTD NBI €492m a full range of products +50% distributed through the 5.3 P&C 1.4 P&C combined two retail networks Insurance 2.1 93.2% +8% 1.9 ratio
ʘ Life Insurance Life and +58% 76.6 78.1 CIR(3) 51.7% Personal 72.7 ʘ Personal protection protection ʘ Property & Casualty H1-20 H1-21 AuM at Net inflows Net inflows Reevaluation AuM at 12/31/2020 € UL & others 06/30/2021 PbT(2) €240m
(1) Excluding the reinsurance agreement with CNP (2) Excluding exceptional items (3) After IFRIC 21 restatement 9 INVESTOR PRESENTATION Retail Banking and Insurance: Payments and Oney Bank (4/4)
Payments H1-21 results(1)
Relevant offline and online payment solutions NBI €235m ʘ Focus on end-to-end digital payment services ʘ Invest in technology and solutions niche-oriented Payment CIR(2) 86.4% A forerunner in rolling-out Instant Payment A key player in prepaid and managed digital solutions PbT(2) €25m
Oney Bank H1-21 results(1)(2) An opportunity for Groupe BPCE: NBI €205m to develop activities in France in a type of business where it is not currently present to develop payment solutions CIR(2) 69.1% to benefit immediately from access to an international development platform in line with the Group's strategic priorities PbT(2) €23m
(1) Excluding exceptional items (see annex) (2) After IFRIC 21 restatement 10 INVESTOR PRESENTATION Global Financial Services/ Asset and Wealth Management: global ambitions for our multi-affiliate model focused on active asset management and insurance Funds
AuM(1) by main geographical area in €bn
More than 20 specialized investment managers globally committed to a highly active, conviction-led investment style (ESG, multi-asset, innovative alternatives, etc..) 1,183
AmericasAmericas EuropeEurope and and APAC APAC 1,153
EUROPEEUROPE (3)
H1-21 results(2) Q2-21 Fees(4) NBI(3) €1,625m CIR(3) 74.6% 24 bps Affiliates plugged into the international distribution platform +1.2bps YoY 880 employees globally PbT(3) €410m
(1) Europe including Dynamic Solutions and Vega IM, excluding H20 AM (€17bn AuM as at 06/30/2021); US including WCM IM (2) Excluding exceptional items (see annex) (3) After IFRIC 21 restatement 11 INVESTOR PRESENTATION Global Financial Services/ Corporate and Investment Banking: client-centric and solutions-driven, Natixis CIB provides a range of expertise to meet the specific needs of our customers worldwide
H1-21 results(2)
Becoming the “go-to bank” in selected sectors ʘ Selected international growth NBI €1,859m in Structured Financing ʘ Strengthened O2D model (3) ʘ Energy & Natural Resources ʘ Increase the footprint in the insurers and CIR 61.4% financial sponsors segments ʘ Aviation (3) ʘ Infrastructure PbT €614m ʘ Real Estate and Hospitality Increase client intimacy with corporates, leveraging on Investment Banking expertise NBI (2) Breakdown ʘ DCM (1) ʘ ECM Net revenues (in €m) 1,852 923 ʘ Acquisition & Strategic Finance 845 929 1,255 231 ʘ Strategic Equity Transactions 96 135 522 126 661 202 ʘ M&A 728 99 93 336 343 393 Continued focus on Global Markets 619 ʘ Fixed Income solutions 321 321 167 275 ʘ Equity Derivatives 127 108 33 250 330 642 617 277 213 287
1 25 43 7 (7) (55) 0 (175) (208) Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 H1-20 H1-21 CVA/DVA desk FIC-T Equity Global finance Investment banking and M&A (1) Total excluding CVA/DVA desk and other; figures at current FX (2) Excluding exceptional items (3) After IFRIC21 restatement 12 INVESTOR PRESENTATION Groupe BPCE's commitments to society Fight against climate change confirmed as a key priority for all business lines in new strategic plan BPCE 2024; the Group just joined the Net Zero Banking Alliance
Strong commitments Alignment on a "Net Zero" trajectory: the Group has joined the "Net Zero Banking Alliance" coordinated by the United Nations Environment Programme Finance Initiative (UNEP FI) Mobilization against climate change: the Group has joined the Ambition 4 Climate platform that presents 114 projects, all sharing the same goal of climate neutrality
Actions to promote our customers' energy transition
Promoting new transition solutions Supporting the energy renovation Financing of renewable energy projects
Signature of a partnership with Energy Partnership with Cozynergy (acquired Launch by the Caisses d’Epargne, in collaboration Observer aimed at developing technical by a group of regional banks of Groupe BPCE), with Natixis and BPCE Energéco, of the 1st debt solutions around hydrogen to enable a start-up specializing in energy renovation, fund dedicated to financing renewable energy industrial decarbonization and the which decided to team up with the Group in projects, with €1.5bn in resources development of renewable energies by order to speed up the rollout of its digital 9 new projects representing 1,262 MW of installed offering storage solutions platform and services capacity and €606 million in financing arranged by Natixis in Q2-21
Improvement in the Sustainalytics rating
Falling from 22.3 (medium risk) to 17.9 (low risk) thanks to better management of the ESG risks by the Group
13 INVESTOR PRESENTATION 02 Delivering solid performance based on synergies and moderate risk appetite
14 Groupe BPCE: strong recovery in H1-21 driven by commercial momentum and significant decrease in cost of risk
Group revenues: €12.5bn, +16.0% vs. H1-20 and +6.4% vs. H1-19 Revenues Retail Banking & Insurance: revenues +7.6% YoY; strong activity in retail banking, Insurance and FSE Global Financial Services: revenues up 36.7%(1) YoY
Operating Operating expenses: +5.0%(2) YoY, in line with dynamic activity expenses Strong positive jaws effect; cost/income ratio(3) down 7.0pp to 67.0% in H1-21
Cost of risk Down 44.6% in H1-21 YoY at €822m (22 bps), with stable S1/S2 provisions in Q2-21 illustrating the continued prudent provisioning
Underlying net income up to €2.25bn in H1-21, x2.6 vs. H1-20(4) Net income Reported net income at €1.9bn in H1-21, x5.9 vs. H1-20
(5) Capital CET1 ratio: 15.6% , including full impact of the buyback of all Natixis minority shareholders Well above requirements, +427 bps over MDA trigger threshold
Strategic Successful public tender offer on Natixis shares; squeeze-out on July 21st, 2021 developments Groupe BPCE released its new strategic plan BPCE 2024 on July 8th, 2021
Ratings Recent rating decisions: Moody’s has affirmed the A1 long term senior preferred rating with a stable outlook; R&I has affirmed the A+ long term senior preferred rating with a stable outlook
Underlying figures, unless otherwise indicated (1) At constant Fx (2) Excluding exceptional items and Single Resolution Fund (3) After IFRIC 21 restatement (4) Net income Group share excluding Coface net contribution and after IFRIC 21 restatement (5) Estimated ratio at June 30,2021 15 INVESTOR PRESENTATION Strategic development Groupe BPCE has engaged a major step in its transformation and the development of its businesses
ʘOn February 9th, 2021, Groupe BPCE announced the public tender offer on the 29% Natixis shares the Group didn’t already own, to engage the simplification of its organization
ʘThis simplified organisation will increase the strategic flexibility of the businesses and allow acceleration in their development for the benefit of their customers and their performance
ʘAnd also improve capital flows within the Group, in an increasingly challenging regulatory environment
ʘThe tender offer was successful, and the squeeze-out took place on July 21st, 2021
ʘOn July 8th, 2021, Groupe BPCE released its new strategic plan BPCE 2024, notably based on simplification, unification and development
ʘNext step: finalization of the study(1) on the acquisition by BPCE of the Insurance and Payments activities of Natixis to better serve our retail banking networks and their customers
All conditions are fulfilled for Groupe BPCE to catch opportunities, have a positive impact on major societal issues and engage a new expansion of its footprint
(1) Any project stemming from this study will be submitted, if need be, to the consultation of the relevant works councils 16 INVESTOR PRESENTATION Q2-21 & H1-21 results - Underlying figures H1-21 net income(1) up to €2.25bn, driven by solid GOI growth and lower cost of risk
Underlying figures Q2-21 % Change % Change H1-21 % Change % Change €m vs. Q2-20 vs. Q2-19 vs. H1-20 vs. H1-19
Net banking income 6,334 22.0% 6.6% 12,465 16.0% 6.4% Operating expenses (4,080) 8.3% 2.2% (8,662) 5.0% 2.9% o/w expenses excluding Single Resolution Fund (4,090) 8.5% 2.4% (8,241) 5.0% 2.5% Gross operating income 2,254 58.3% 15.8% 3,803 52.6% 15.5% Cost of risk (332) (66.1)% 2.0% (822) (44.6)% 34.8% Income before tax 2,012 x3.9 18.4% 3,140 x2.7 11.2% Income tax (525) x2.5 (5.6)% (937) x1.9 (4.9)% Non-controlling interests (114) ns (31.2)% (207) x5.0 (17.1)% Net income – Group share excl. Coface net 1,373 x4.7 40.5% 1,996 x3.2 25.7% contribution Net income – Group share excl. Coface net 1,241 x6.6 42.0% 2,250 x2.6 25.3% contribution after IFRIC 21 restatement Cost/income ratio 66.9% (8.1)pp (2.5)pp 67.0% (7.0)pp (2.6)pp
(1) Group share 17 INVESTOR PRESENTATION H1-21 results - Cost of risk/Asset quality (1/2) Continued prudent provisioning: cost of risk at €822m in H1-21
(1) COST OF RISK S1/S2 S3
45 49 (in bps) 13 34 21 20 23 25 18 21 18 10 36 20 (2) 17 26 19 19 RB&I 13 15 5 5 -1 2
163 144 Cost of risk 123 121 95 124 €822m 53 118 -44.6% vs. H1-20 112 112 65 35 17 39 47 27 30 8 25 CIB 11 9 8 6 9 55 49 42 NPL ratio 29 29 32 18 26 22 17 27 19 24 2.6% 25 21 19 12 31 18 15 Groupe BPCE 5 +0.1 pp vs. Dec. 20 5 -1 2
1,484 (in €m) 981 923 585 946 822 504 332 490 526 332 356 743 420 455 398 Groupe BPCE 229 591 345 538 84 92 -14 78 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 H1-20 H1-21
(1) Cost of risk expressed in annualized basis points on gross customer outstandings at the beginning of the period or in € amounts – Excluding exceptional items (2) In Q1-20, excluding the methodological effect, the cost of risk would have been 29 bps for RB&I (positive impact of €115m) and 35 bps for Groupe BPCE (positive impact of €120m) 18 INVESTOR PRESENTATION H1-21 results - Cost of risk/Asset quality (2/2) Asset quality: limited exposures to sensitive sectors
Diversified portfolio Exposure to sectors considered to be sensitive
Breakdown of Group gross exposure per Corporate and small business Group exposures(2) counterparty at June 30, 2021(1) % % Gross % Total Group State- % exposure Investment Corporate customers 4% gross guaranteed NPL o/w 69% in France 27% (€bn) Grade 7% exposure loans Wholesale and retail trade 16.4 1.2% 24.4% 6.0% 44.9% 4% (non-food) 8% €1,385bn Tourism – Hotel – Catering 15.6 1.1% 21.2% 9.2% 33.3% 17% Automobile 10.2 0.7% 22.6% 4.1% 57.0% 1% Consumer goods Residential (excl. cosmetics and personal 6.2 0.4% 7.5% 3.0% 79.7% mortgages 25% 31% 1% care) Real estate Professionals (excl. 6.9 0.5% 0.3% 4.6% 54.6% residential exposure)
Individual customers Small businesses Corporate customers Natixis scope Financial institutions Oil & Gas(4): €9.6bn net EAD with >75% of exposure with no/limited sensitivity to oil prices and >60% Investment Grade Local governments o/w independent producers & service companies: €2.1bn net EAD (€0.7bn US and €1.4bn EMEA/Other) Central administrations Aviation: €3.5bn net EAD Central banks and other sovereign exposures Well diversified portfolio across ≈30 countries (no country accounting for >25% of net EAD), Securitization approx. 80% exposures secured and majority investment grade Equities
(1) Estimate (2) Management data at end of June 2021 (3) Energy & Natural Resources + Real Assets perimeters 19 INVESTOR PRESENTATION 03 Operating with robust capital ratios, strong loss-absorbing capacity and high credit ratings
20 Capital and Loss-absorbing Capacity CET1 ratio as of June 30 , 2021 including full impact of the buyback of all Natixis minority shareholders, above 2021 year-end guidance
CHANGE IN THE CET1 RATIO (in bps)
Organic capital creation = 13bps
Requirements Actual levels June 30, 2021 as at +32bps June 30, 2021(1) 16.1% +4bps (2) (19)bps +5bps 15.6% CET1 ratio 9.32% 15.6% (ECB) (70)bps Total capital ratio 13.26%(2) 17.5% (ECB) TLAC ratio 19.51% 22.9%(3) CET1 ratio Retained Change in Issuance Full impact Other CET1 ratio (FSB) at March 31, 2021 earnings risk-weighted and distribution of buyback changes at June 30, assets of cooperative of all Natixis 2021 Subordinated (3) shares minority 19.5% 22.9% shareholders MREL ratio (SRB)
Total MREL ratio 25.0% 29.5% (1) CET1 capital equal to €68.4bn as of June 30, 2021 (SRB) Total loss-absorbing capacity stood at €100.8bn(1) as of June 30, 2021 Leverage ratio equal to 5.7%(1,4) as of June 30, 2021
Capital adequacy, Total loss-absorbing capacity – see note on methodology (1) Estimate at June 30, 2021 (2) Excluding “Pillar 2 Guidance” (3) As part of its annual resolvability assessment, Groupe BPCE has chosen to waive the possibility offered by Article 72b(3) of the Capital Requirements Regulation to use senior preferred debt for compliance with its TLAC/subordinated MREL requirements in 2021 (4) The adjusted leverage ratio requirement is set at 3.2% 21 INVESTOR PRESENTATION Risk-Weighted Assets
BREAKDOWN PER BUSINESS LINE (in €bn) BREAKDOWN PER TYPE OF RISK(1) (in €bn)
431 439 431 439 13% 12% Other 9% 9% 3% 4% 19% 20% Global Financial Services Operational Risk
Retail Banking & 88% 87% Market Risk 68% 68% Insurance Credit Risk
Dec. 31, 2020 June 30, 2021 Dec. 31, 2020 June 30, 2021
CHANGE OVER A 6-MONTH PERIOD (in €bn)
-2 +6 +4
431 439
Risk-Weighed Assets Retail Banking & Global and Financial Other Risk-Weighed Assets Dec. 31, 2020 Insurance Services June 30, 2021
(1) The CVA is included under Credit risk. It accounted for less than 1% of RWA at June 30, 2021, and December 31, 2020 22 INVESTOR PRESENTATION Own funds
Reconciliation of shareholders’ equity to total capital Regulatory capital (in €bn) 78.2 77.0 In billions of euros June 30, 2021 Dec. 31, 2020 9.3 8.6 Equity attribuable to equity holders of the parent 76.3 72.7 26.9 27.5 Tier-2 capital Cancelation of hybrid securities(1) in equity - - attribuable to equity holders of the parent CET1 CET1 69.0 68.4 cooperative shares Non-controlling interests(2) 0.2 4.4 42.1 40.9
Goodwill and intangibles (4.9) (4.8) Reserves(3) EL/Prov. Difference (0.3) (0.4) Dec. 31, 2020 June 30, 2021 Deduction of irrevocable payment commitments - - Other regulatory adjustments (2.9) (2.9) Total capital ratios (as a %) Common Equity Tier-1 capital 68.4 69.0 18.1% 17.5% Additional Tier-1 capital - - 2.1 2.0 Tier-1 capital 68.4 69.0 Tier-2 capital 10.1 10.8 T2 Contribution 16.0 15.6 T2 regulatory adjustments (1.5) (1.6) CET1 ratio Total capital 77.0 78.2
Dec. 31, 2020 June 30, 2021
(1) As at 12/31/2020, BPCE deeply subordinated notes booked to equity attributable to equity holders of the parent (3) Non-controlling interests (prudential definition); as at 06/30/2021 account is only taken of the part from Oney after regulatory clipping and as at 12/31/2020 account is only taken of the part from Natixis, excluding super-subordinated notes and Oney, after regulatory clipping (4) Reserves net of prudential restatements 23 INVESTOR PRESENTATION Capital and Loss-absorbing Capacity Financial structure: MDA trigger threshold
Capital Capital Pillar I Pillar II conservation G-SIB Countercyclical Pillar I Pillar II conservation G-SIB Countercyclical 12/31/2020 requirement requirement buffer buffer buffer Total 06/30/2021 requirement requirement buffer buffer buffer Total
SREP CET 1 SREP CET 1 4.50 % 1.31 % 2.50 % 1.00 % 0.01 % 9.32 % 4.50 % 1.31 % 2.50 % 1.00 % 0.01 % 9.32 % requirement 16.0 % requirement 15.6%
SREP Tier 1 SREP Tier 1 6.00 % 1.31 % 2.50 % 1.00 % 0.01 % 10.82 % 6.00 % 1.31 % 2.50 % 1.00 % 0.01 % 10.82 % requirement Buffer: Buffer: requirement 488 bps 427 bps SREP total capital MDA SREP total 8.00 % 1.75 % 2.50 % 1.00 % 0.01 % 13.26 % MDA requirement trigger capital 8.00 % 1.75 % 2.50 % 1.00 % 0.01 % 13.26 % trigger threshold: requirement threshold: 11.31% 11.11% SREP Distance to SREP SREP Distance to SREP 12/31/2020 Actual level requirement requirement (bps) 06/30/2021 Actual level requirement requirement (bps)
CET 1 16.0 % 9.32 % 667 CET 1 15.6 % 9.32 % 626
Tier 1 16.0 % 10.82 % 517 Tier 1 15.6 % 10.82 % 476
Total Total 18.1 % 13.26 % 488 17.5 % 13.26 % 427 capital capital
Distance to MDA trigger threshold = lowest of Distance to MDA trigger threshold = lowest of 488 Dec. 31, 2020 June 30, 2021 427 the 3 distances to SREP the 3 distances to SREP
MDA trigger threshold 11.11 % MDA trigger threshold 11.31 %
Significant buffer over MDA trigger threshold: 427 bps (- 61 bps since end 2020)
24 INVESTOR PRESENTATION Capital and Loss-absorbing Capacity
TLAC(1,2) RATIO (as a % of risk-weighted assets) MREL(1,2) RATIO (as a % of risk-weighted assets)
29.5%
25.0% 6.5% 22.9%
19.5% 4.8% 4.8% Eligible Senior Preferred debt Senior Non-Preferred 2.6% 2.6% Senior Non-Preferred Tier 2 Tier 2 Additional Tier 1 Additional Tier 1 CET1 CET1 15.6% 15.6%
TLAC requirement June 30, 2021 Total MREL requirement June 30, 2021 June 30, 2021(3) June 30, 2021(4)
(1) Estimate at June 30, 2021 (2) As part of its annual resolvability assessment, Groupe BPCE has chosen to waive the possibility offered by Article 72b(3) of the Capital Requirements Regulation to use senior preferred debt for compliance with its TLAC/subordinated MREL requirements in 2021 (3) Based on FSB TLAC term sheet dated Nov. 9, 2015 (4) Based on ACPR’s notification of March 22, 2021 25 INVESTOR PRESENTATION Groupe BPCE’s ratings are among the best in the global banking industry, based on a robust capital position, well-diversified business model and efficient strategy execution
As of June 24, 2021 Senior preferred long-term debt A1 A A+ A+
Outlook Stable Stable Negative Stable
Senior non-preferred Baa1 BBB+ A A
Tier 2 Baa2 BBB A-
Senior short-term debt P-1 A-1 F1
26 INVESTOR PRESENTATION 04 Global and innovative issuer, committed to society
27 Groupe BPCE is a global issuer, operating in EMEA, the US and the Asia- Pacific region in several currencies and types of debt instruments ≈68% of the 2021 MLT wholesale funding plan(1) raised(2)
MLT wholesale funding: revised 2021 plan and execution YTD(2) Structure of MLT wholesale funding(3) ʘ Target: €22bn(1) / Raised YTD(1,2): €14.9bn or ≈68% raised in 2021 YTD(2) • Tier 2 and/or Senior Non-Preferred Target: €5.5bn / Raised YTD(2): €2.1bn of SNP Unsecured bond • Senior Preferred 55% issues Target: €6bn / Raised YTD(1,2): €4.4bn 43% Covered bond issues • Covered Bonds (2) Target: €10.5bn / Raised YTD : €8.4bn ABS 3% ʘ Asset-Backed Securities Target: €1.5bn / Raised YTD(2): €0.4bn Diversification of the investor base/ unsecured MLT wholesale funding raised in 2021 YTD(2) TLTRO III 1% USD ʘ TLTRO III outstanding amount: €97.2bn at end-June 2021 4% ʘ Repayment at maturity fully integrated in our MLT funding plans GBP 5% 61% Foreign AUD currencies JPY 39% High liquidity levels 30% Others ʘ Average monthly LCRs in Q2-21: 160% EUR ʘ Liquidity reserves: €297bn at end-June 2021 ʘ Coverage ratio of short-term debt obligations: 241% at end-June 2021
(1) Excluding structured private placements and asset-backed securities and instead of an initial plan of €22bn to €25bn (2) As at 9 July 2021 (3) Excluding structured private placements 28 INVESTOR PRESENTATION Innovation is at the heart of Groupe BPCE’s funding policy ≈€7.1bn BPCE SRI outstanding as of end-June 2021
GREEN SOCIAL €3.7bn AuM 3.5G€ AuM ➢ Renewable Energies ➢ Human Development: Education, Healthcare and Social Services ➢ Green Buildings ➢ Local Economic Development
Green and Transition Bond Issues Social Bond issues - 2020 2020 2017 2018 2019 Euro Bond of the year July 2020 SOCIAL BONDS: €250m equiv. GREEN COVERED SOCIAL BONDS: 2019 €512m equiv. SOCIAL BONDS: SOCIAL BONDS: Methodology Note: BONDS: €1.25bn Best green/ISR Local Economic Development/ 2015 deal of the year Human Development €1.02bn equiv. €1.68bn equiv Methodology Note: Human Development Methodology Note: Covid 19 September11,2020 2021 . GREEN BONDS: Green Buildings Local Economic Development GREEN BONDS: €500m €300m Methodology Note: Renewable Energies Renewable Energies TRANSITION BONDS: GREEN COVERED €100m BONDS: €1.5bn
Methodology Note: Deal of the Year for Healthcare Best Sustainability Green Buildings Bonds Bond in Most innovative 2017 Investment Bank September 7, 2017 for climate change March 25, 2018 & sustainability
29 INVESTOR PRESENTATION Liquidity reserves and short-term funding
TOTAL LIQUIDITY RESERVES OF GROUPE BPCE(1) SHORT-TERM FUNDING AND MLT DEBT MATURING (in €bn) IN THE SHORT TERM (in €bn)
Coverage ratio of short-term funding + MLT debt maturing in the short-term by liquidity reserves(2) 318 246% 234% 241% 307 297
146 176 145 23 Cash placed with 19 central banks 21 MLT 56 51 57 LCR securities
106 113 102 ST 105 91 95 Assets eligible for central bank funding Dec.31, March 31, June 30, Dec. 31, March 31, June 30, 2020 2021 2021 2020 2021 2021
(1) Excluding MMF US Natixis deposits (2) Coverage ratio = Total liquidity reserves of Groupe BPCE / [Short-term funding +MLT debt maturing in the short term]
30 INVESTOR PRESENTATION ADDITIONAL INFORMATION
31 Q2-21 & H1-21 results – Restated figures Strong jaws effect both in Q2-21 and H1-21 H1-21 net income(1) at €1.9bn
Restated figures Q2-21 Q2-20 % Change H1-21 H1-20 % Change €m
Net banking income 6,337 5,183 22.3% 12,455 10,726 16.1% Operating expenses (4,151) (3,837) 8.2% (8,806) (8,383) 5.0% o/w expenses excluding Single Resolution Fund (4,161) (3,842) 8.3% (8,384) (7,983) 5.0% Gross operating income 2,187 1,346 62.5% 3,649 2,343 55.8% Cost of risk (332) (981) (66.2)% (822) (1,484) (44.6)% Income before tax 1,924 282 x6.8 2,965 829 x3.6 Income tax (509) (129) x3.9 (921) (385) x2.4 Non-controlling interests (108) (3) ns (194) (30) ns Net income – Group share excl. Coface net 1,308 150 x8.7 1,851 415 x4.5 contribution Coface net contribution (19) 5 (102) Reported net income – Group share 1,308 131 x10.0 1,856 312 x5.9
Restated figures: following the announced sale of a 29.5% stake in Coface on February 25, 2020 and for financial communication purposes, all impacts related to Coface are shown in a separate P&L line ‘Coface net contribution”. From an accounting standpoint the 2020 Coface capital loss is classified in “Gain or loss on other assets” and the 2020 Coface residual stake impairment in “Share in net income of associates”. (1) Group share 32 INVESTOR PRESENTATION Reconciliation of restated data to reported data
GROUPE GROUPE BPCE BPCE
In millions of euros H1-21 Coface H1-21 H1-20 Coface H1-20 Reported Restated reported restated
Net banking income 12,455 12,455 10,726 10,726
Operating expenses (8,806) (8,806) (8,383) (8,383)
Gross operating income 3,649 3,649 2,343 2,343
Cost of risk (822) (822) (1,484) (1,484) Share in net income of associates 156 (7) 149 68 33 101
Gains or losses on other assets (11) (11) (242) 112 (130)
Income before tax 2,972 (7) 2,965 685 145 829
Income tax (921) (921) (385) (385) Non-controlling interests (196) 2 (194) 13 (43) (30)
Net income – excl. Coface net contribution 1,856 (5) 1,851 312 102 415
Coface – Net contribution 5 (102)
Net income – Group share 1,856 1,856 312 312
33 INVESTOR PRESENTATION H1-21 results: reconciliation of alternative performance measures to restated data
Net Operating Income Net banking expenses before tax income income - Group share excluding In millions of euros Coface
Restated H1-21 results 12,455 (8,806) 2,965 1,851 Revaluation of assets associated with deeply subordinated notes Corporate center (2) (2) (8) denominated in foreign currencies Business lines/ Transformation and reorganization costs 11 (143) (154) (128) Corporate center
Legal provision (19) (19) (10)
H1-21 results 12,465 8,662 3,140 1,996 excluding exceptional items & Coface net contribution
34 INVESTOR PRESENTATION H1-20 results: reconciliation of alternative performance measures to restated data
Net Operating Associates Gains or Income Net banking expenses losses on before tax income income other - Group assets share excluding In millions of euros Coface
Restated H1-20 results 10,726 (8,383) 101 (130) 829 415 Revaluation of assets associated with deeply subordinated notes Corporate center 0 0 0 denominated in foreign currencies Business lines/ Transformation and reorganization costs (133) (141) (274) (175) Corporate center
Impact of Lebanon default on ADIR insurance Insurance (14) (14) (10)
Contribution to the insurance guarantee fund Insurance (16) (16) (8)
Business lines/ Disposals and impairment (10) (10) (10) Corporate center H1-20 results 10,742 (8,250) 125 11 1,143 618 excluding exceptional items & Coface net contribution
35 INVESTOR PRESENTATION Reconciliation of 2020 data to pro forma data (1/2)
Retail banking and Q1-20 Q2-20 Q3-20 Q4-20 Insurance Net Net Net Net Operating Income Operating Income Operating Income Operating Income In millions of euros banking Net income banking Net income banking Net income banking Net income expenses before tax expenses before tax expenses before tax expenses before tax income income income income
Reported figures 4,140 (2,803) 1,032 685 4,074 (2,585) 844 537 4,162 (2,629) 1,211 818 4,081 (2,796) 527 289
Analytical adjustments 1 2 2 1 1 1 2 1 1 1 2 1 1 1 2 1
Central institution’s expenses (65) 7 (58) (39) (65) 7 (58) (39) (65) 7 (58) (39) 194 (21) 173 118
Pro forma figures 4,076 (2,794) 977 646 4,010 (2,577) 789 499 4,098 (2,620) 1,156 780 4,276 (2,816) 702 407
Global financial Q1-20 Q2-20 Q3-20 Q4-20 services Net Net Net Net Operating Income Operating Income Operating Income Operating Income In millions of euros banking Net income banking Net income banking Net income banking Net income expenses before tax expenses before tax expenses before tax expenses before tax income income income income
Restated figures 1,462 (1,136) 134 41 1,223 (1,014) (71) (46) 1,447 (1,085) 135 54 1,896 (1,251) 465 225
Analytical adjustments (8) (3) (11) (6) (8) (3) (11) (6) (8) (3) (11) (6) (8) (3) (11) (6)
Pro forma figures 1,454 (1,140) 124 36 1,215 (1,017) (82) (51) 1,439 (1,088) 124 49 1,888 (1,254) (454) 219
36 INVESTOR PRESENTATION Reconciliation of 2020 data to pro forma data (2/2)
Corporate center Q1-20 Q2-20 Q3-20 Q4-20
Net Net Net Net Operating Income Operating Income Operating Income Operating Income In millions of euros banking Net income banking Net income banking Net income banking Net income expenses before tax expenses before tax expenses before tax expenses before tax income income income income
Restated figures (58) (606) (619) (461) (115) (238) (491) (341) (98) (191) (263) (169) 326 (309) 77 114
Analytical adjustments 7 2 9 4 7 1 9 5 7 1 9 5 7 1 9 4
Central institution’s expenses 65 (7) 58 39 65 (7) 58 39 65 (7) 58 39 (194) 21 (173) (118)
Pro forma figures – 13 (612) (553) (418) (42) (244) (425) (297) (26) (197) (197) (125) 139 (286) (88) 1 excl. Coface net contribution
37 INVESTOR PRESENTATION Exceptional items and IFRIC 21 effects per business line
H1-21 RETAIL BANKING GLOBAL CORPORATE GROUPE BPCE & INSURANCE FINANCIAL CENTER In millions of euros SERVICES Impact of exceptional items (33) (43) (99) (175) (excl. Coface) Impact of IFRIC 21 (58) (19) (231) (308) Total impact on Income before (91) (62) (330) (483) tax BANQUE CAISSE SEF INSURANCE PAYMENTS OTHER RETAIL BANKING POPULAIRE D'EPARGNE NETWORKS & INSURANCE In millions of euros NETWORK NETWORK Impact of exceptional items (15) (13) (4) 0 (1) 0 (33) Impact of IFRIC 21 (21) (25) (3) (8) 0 (1) (58) Total impact on Income before (36) (38) (7) (8) (1) (1) (91) tax
AWM CIB GLOBAL FINANCIAL In millions of euros SERVICE Impact of exceptional items (17) (26) (43) (excl. Coface) Impact of IFRIC 21 (3) (17) (19) Total impact on Income before (20) (43) (62) tax
38 INVESTOR PRESENTATION Groupe BPCE: restated quarterly income statement per business line
RETAIL BANKING GLOBAL FINANCIAL CORPORATE GROUPE & INSURANCE SERVICES CENTER BPCE
In millions of euros Q2-21 Q2-20pf Q2-21 Q2-20pf Q2-21 Q2-20pf Q2-21 Q2-20pf %
Net banking income 4,420 4,010 1,766 1,215 151 (42) 6,337 5,183 22.3%
Operating expenses (2,687) (2,577) (1,208) (1,017) (255) (244) (4,151) (3,837) 8.2%
Gross operating income 1,733 1,433 558 199 (104) (286) 2,187 1,346 62.5%
Cost of risk (283) (651) (27) (286) (21) (44) (332) (981) (66.2)%
Income before tax 1,466 789 534 (82) (75) (425) 1,924 282 x6.8
.8Income tax (392) (262) (138) 22 21 111 (509) (129) x3.9
Non-controlling interests (31) (28) (96) 9 18 16 (108) (3) ns
Net income – excl. 1,043 499 300 (51) (35) (297) 1,308 150 x8.7 Coface
Coface – Net contribution (19) (19) ns
Net income – 1,043 499 300 (51) (35) (317) 1,308 131 x10.0 Group share
39 INVESTOR PRESENTATION Groupe BPCE: restated quarterly series
GROUPE BPCE
In millions of euros Q1-20pf Q2-20pf Q3-20pf Q4-20pf Q1-21 Q2-21
Net banking income 5,543 5,183 5,511 6,303 6,117 6,337
Operating expenses (4,546) (3,837) (3,905) (4,356) (4,655) (4,151)
Gross operating income 997 1,346 1,606 1,947 1,462 2,187
Cost of risk (504) (981) (589) (924) (490) (332)
Income before tax 548 282 1,083 1,069 1,041 1,924
Net income – excl. Coface 265 150 703 628 543 1,308
Coface – Net contribution (83) (19) (29) (5) 5
Net income – Group share 181 131 674 624 548 1,308
40 INVESTOR PRESENTATION Cost of risk by business lines
COST OF RISK(1) (in bps) 49 48
16 17 20 18 25 20 33 15 6 30 22 18 BP network 5 12 3 2 45 37 21 5 15 19 16 41 11 22 7 12 8 14 8 10 CE network 5 -2 45 49 13 21 20 23 25 10 36 18 17 26 20 19 RB&I 5 13 5 -1 163 123 121 124 95 53 112 112 65 47 17 39 30 8 CIB 11 9 6 9
55 49 29 32 18 29 26 19 17 24 25 31 12 21 18 Groupe BPCE 5 5 -1 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21
S1/S2 S3 (1) Cost of risk expressed in annualized basis points on gross customer outstandings at the beginning of the period - Excluding exceptional items 41 INVESTOR PRESENTATION Retail Banking & Insurance Robust financial performance thanks to strong commercial activity; Large positive jaws effect and decline in the cost of risk
Loan outstandings: €628bn, +7.8% YoY On-balance sheet deposits & savings(1): o/w residential mortgages +8.6% YoY €543bn, +6.8% YoY o/w consumer loans +6.8% YoY o/w sight deposits +9.4% YoY o/w equipment loans +5.8% YoY o/w State-guaranteed loans: €30.2bn
NET BANKING INCOME(5)
Underlying figures(2) Q2-21 % Change H1-21 % Change +8.0% +8.4% +5.9% +18.5% €m
Net banking income 4,420 10.0% 8,718 7.6% 6,530 7,050 Operating expenses (2,669) 6.0% (5,414) 3.0% 551 597 465 492 198 235 Gross operating (6) 1,751 16.6% 3,304 16.0% BP + CE networks FSE Insurance Payments income (5) Cost of risk(3) (283) (56.4)% (670) (29.7)% OPERATING EXPENSES Income before tax BP + CE networks FSE Insurance Payments after IFRIC 21 1,455 75.7% 2,724 38.0% (184) (203) restatement (4,285) (4,400) (298) (309) (250) (262) Cost/income ratio(4) 61.0% (2.3)pp 61.4% (2.7)pp
+2.7% +3.7% +5.0% +10.3% H1-20 H1-21 (1) Excluding centralized regulated savings (2) Excluding exceptional items (see annex) (3) Methodological effect in Q1-20: +€115m (4) After IFRIC 21 restatement (5) Excluding Banque Palatine and Oney Bank (6) Excluding provision for home-purchase savings schemes 42 INVESTOR PRESENTATION Retail Banking & Insurance - Banques Populaires Sharp increase in GOI: +30.1% in H1-21, expenses well under control
LOAN OUTSTANDINGS - in €bn - DEPOSITS & SAVINGS PRODUCTION
+9.6% +8.9% 189 Retail market – P&C 341 +64% In thousands of contracts 267 313 116 244 19 81 Off-balance sheet D&S 75 2.5 Consumer loans 14 2.0 +26% 16 In €bn Centralized regulated 14 2.3 savings 1.4 +59% Life insurance gross Inflows +8.8 % In €bn 243 On-balance sheet D&S, 223 38.3% +1.5pp % share of Unit-Linked products 36.8% June 2020 June 2021 excluding centralized items State-guaranteed loans June 2020 June 2021 H1-20 H1-21
Underlying figures(1) Q2-21 % Change H1-21 % Change +11.5% +18.6% +6.0% €m
Net banking income 1,738 17.1% 3,407 11.5%
Operating expenses (1,048) 5.5% (2,119) 2.6% 3,414 2,068 Gross operating income 690 40.6% 1,287 30.1% 3,063 1,744 1,337 Cost of risk(2) (136) (53.0)% (301) (25.8)% 1,262 (4) (4) Income before tax Net banking income Net interest income Commissions 556 x2.8 1,034 65.9% after IFRIC 21 restatement Cost/income ratio(3) 60.9% (6.8)pp 61.6% (5.3)pp
(1) Excluding exceptional items (see annex) (2) Methodological effect in Q1-20: +€34m (3) After IFRIC 21 restatement (4) Excluding provision for home-purchase savings schemes 43 INVESTOR PRESENTATION Retail Banking & Insurance - Caisses d’Epargne Strong increase in GOI: +9.2% in H1-21
LOAN OUTSTANDINGS - in €bn - DEPOSITS & SAVINGS PRODUCTION +4.7% +6.5% 489 467 255 338 Retail market – P&C +33% In thousands of contracts 325 134 140 305 10 Off-balance sheet D&S 5.1 7 3.8 +33% Consumer loans 59 61 In €bn
Centralized regulated 7.7 Life insurance gross Inflows savings 4.3 +80% +5.0% In €bn 273 288 On-balance sheet D&S, 35.8% +1.4pp % share of Unit-Linked products June 2020 June 2021 excluding centralized items 34.4%
State-guaranteed loans June 2020 June 2021 H1-20 H1-21
Underlying figures(1) Q2-21 % Change H1-21 % Change +4.9% +9.5% +5.0% €m
Net banking income 1,825 3.6% 3,620 5.1%
Operating expenses (1,128) 6.2% (2,281) 2.8% 3,636 3,467 2,043 Gross operating income 696 (0.3)% 1,339 9.2% 1,867 1,655 Cost of risk(2) (66) (76.0)% (219) (44.8)% 1,576 Income before tax Net banking income (4) Net interest income(4) Commissions 620 51.1% 1,147 34.4% after IFRIC 21 restatement Cost/income ratio(3) 62.5% 1.5pp 62.3% (1.4)pp
(1) Excluding exceptional items (see annex) (2) Methodological effect in Q1-20: +€75m (3) After IFRIC 21 restatement (4) Excluding provision for home-purchase savings schemes 44 INVESTOR PRESENTATION Retail Banking & Insurance
DEPOSITS & SAVINGS (in €bn) LOAN OUTSTANDINGS (in €bn)
847.2 Change YoY Change YoY 796.7 +6.3% +7.8% 257.6 627.7 235.6 582.4
+9.4% Sight deposits 210.9 349.4 196.4 +7.4% Passbook savings accounts 321.6 +1.1% Regulated home savings plans
81.4 82.2 +7.8% Term accounts +8.6% Residential mortgages 52.9 35.3 49.1 (40.9)% BPCE bonds placed in the retail network 33.1 +6.8% Consumer loans 4.4 2.6 24.1 49.9 55.4 21.7 +10.7% Mutual funds +10.9% Short-term credit facilities
+4.4% Life insurance +5.8% Equipment loans 185.7 193.9 157.0 166.1 Other Other 22.3 22.9 20.7 21.5 June 2020 June 2021 June 2020 June 2021
45 INVESTOR PRESENTATION Retail Banking & Insurance - Financial Solutions & Expertise Good momentum in commercial activities, all businesses are catching opportunities in the economic turnaround
Business activities Breakdown of revenues per business line in H1-21 ʘ Consumer credit: record level of personal loan financing in H1-21, rising to €7bn (+39% vs. H1-20) 7% 3% 22% ʘ Sureties & financial guarantees: further momentum in guarantees on loans to 12% Consumer credit individual customers (gross written premiums: +21% vs. H1-20) Sureties & financial guarantees Retail securities services ʘ Retail securities services: good half-year driven by growth in the number Leasing of stock market transactions in France despite a very strong 2020 baseline €597m Factoring (+3% vs. H1-20) 23% Socfim ʘ Leasing: continued good commercial momentum with, in June, a record level of 25% Other equipment lease production and long-term vehicle leasing orders in a context marked by sustained activity with the retail banking networks 8% ʘ Factoring: confirmed business recovery in Q2-21 with factored revenues up 33% vs. Q2-20 Underlying figures(1) Q2-21 % Change H1-21 % Change ʘ Socfim: building on the high levels reached by new production in Q1-21, activities €m continued to enjoy strong momentum in Q2-21 (+14% vs. Q2-20) Net banking income 302 15.0% 597 8.4% Results Operating expenses (153) 8.4% (309) 3.7% ʘ Net banking income: very robust performance in Q2-21 heightened by a Q2-20 baseline effect Gross operating income 148 22.6% 287 13.9% ʘ Operating expenses: in line with strong activity; cost to income ratio at 51.2% Cost of risk (30) 17.5% (61) 21.2% in Q2-21 (-2.9pp vs. Q2-20) Income before tax 117 23.6% 229 11.9% ʘ Cost of risk: increase year-on-year, reflecting prudent risk management after IFRIC 21 restatement Cost/income ratio(2) 51.2% (2.9)pp 51.4% (2.3)pp (1) Excluding exceptional items (see annex) (2) After IFRIC 21 restatement 46 INVESTOR PRESENTATION Retail Banking & Insurance - Insurance Scope: Insurance division of Natixis Solid commercial activity and financials
Premiums(1) In €bn Life insurance AuMs(1) Share of UL products – H1-21
+50% 7.9 +7% YTD YoY share of UL +3pp +2pp 3.7 +79% +8%
+12% 5.3 €78.1bn 2.1 1.4 €6.4bn 2.1 1.9 €22bn 28% UL €2.4bn 38% +58% +95% €56 76.6 78.1 € 72.7 bn €4.0bn
Q2-20 Q2-21 H1-20 H1-21 AuM at Net inflows Net inflows Reevaluation AuM at AuM Gross inflows 12/31/2020 € UL & others 06/30/2021 P&C Insurance Life and Personal protection
Underlying figures(2) Q2-21 % Change H1-21 % Change €m Key indicators(1) ʘ €2.9bn gross inflows and €1.7bn net inflows for Life insurance in Q2-21 Net banking income 252 6.7% 492 5.9% (€6.4bn and €3.9bn respectively for H1-21), strongly up vs. prior year period Operating expenses (124) 6.6% (262) 5.0% ʘ P&C Insurance premium growth +12% vs. Q2-20 Gross operating income 128 6.7% 230 7.0% ʘ P&C and Personal Protection equipment rate at 29.3% (+0.6pp QoQ) for Income before tax the Banques Populaires and at 32.5% for the Caisses d’Epargne 125 10.1% 240 6.2% (+0.4pp QoQ) after IFRIC 21 restatement (3) ʘ P&C combined ratio at 93.5% in Q2-21 (+0.7pp YoY), 93.2% in H1-21 Cost/income ratio 50.8% (0.6)pp 51.7% (0.1)pp (+1.6pp YoY)
(1) Excluding the reinsurance agreement with CNP (2) Excluding exceptional items (see annex) (3) After IFRIC 21 restatement 47 INVESTOR PRESENTATION Retail Banking & Insurance - Payments/ Oney Bank
PAYMENTS Net revenues: +18.5% in H1-21 off a low base related to the lockdown measures Scope: Payments division of Natixis in France having impacted the April/May commercial activity in 2020 Underlying figures(1) Q2-21 % Change H1-21 % Change Payment Processing & Services: net revenues +18% in H1-21; number of card ʘ €m transactions processed +17% vs. H1-20. Contactless transactions accounting for ~47% of transactions in Q2-21 vs. ~36% in Q2-20. Strong growth of mobile Net banking income 118 37.7% 235 18.5% payments (x2.6 vs. Q2-20) and instant payment transactions (x2.1 vs. Q2-20) Operating expenses (101) 10.5% (203) 10.3% ʘ Digital: PayPlug continues to benefit from its positioning across small and medium-sized merchants (business volumes +78% in H1-21) and with growth Gross operating income 17 ns 31 ns across Groupe BPCE retail networks (business volumes x3.3 in H1-21) Dalenys featuring dynamic activity levels with business volume growth Cost of risk (7) ns (7) ns accelerating at +46% in H1-21 Income before tax 10 ns 25 55.0% ʘ Benefits: Issuing volumes for the Reward activity “Titres Cadeaux” +27% in H1-21 after IFRIC 21 restatement and +25% in H1-21 for meal vouchers Cost/income ratio(2) 86.0% (21.2)pp 86.4% (6.4)pp Positive jaws effect in Q2-21 and in H1-21 despite the investments being made in order to ensure sustainable development
ONEY BANK Outstanding loans: €2.5bn at end-June 2021, down 4% Underlying figures(1) Q2-21 % Change H1-21 % Change ʘ Mainly due to the drop in consumer loans caused by health restrictions affecting €m physical points of sale Net banking income 101 (10.2)% 205 (8.2)% Loan production: +20.6% in H1-21 at €1,640m ʘ Sharp increase in “Split payment solution 3x4x”: +21% at €762m Operating expenses (70) 0.7% (142) (1.1)% Split payment solution Gross operating income 31 (27.8)% 63 (20.8)% (3x4x) 46% H1-21 breakdown of loan Assigned credit Cost of risk (20) (11.1)% (40) (14.0)% production by product Income before tax €1.640m 11 (46.0)% 23 (30.2)% Revolving credit 33% after IFRIC 21 restatement (2) Personal loans Cost/income ratio 69.1% 7.6pp 69.1% 4.8pp Change YoY, unless otherwise indicated 9% (1) Excluding exceptional items (see annex) (2) After IFRIC 21 restatement 12% 48 INVESTOR PRESENTATION Global Financial Services/ Asset & Wealth Management Robust AuM growth and fee rate dynamic
Assets under management(1) (in €bn) 35 1,183 AuMs: +3% QoQ with positive net inflows and market effect. Favourable mix Controlling affiliates WCM IM shift notably across European affiliates with faster AuM growth at Mirova, DNCA and AEW, leading to a higher average fee rate (6) 82 1,153 5 AM net inflows(1): excl. Ostrum AM reached ~€5bn in Q2-21 mainly driven by North American affiliates and private assets 74 (4) 1,100 ʘ Second quarter of positive net inflows at Harris Associates in a row (AuM now ~$123bn) 1,079 ʘ Fifth consecutive quarter of positive net inflows on LT products 833 overall (cumulative ~€26bn net inflows over the period) AuM at Net flows Net flows Market FX impact/ AuM at 03/31/2021 excl. Ostrum AM Ostrum AM effect Other 06/30/2021 excl. H2O excl. H2O
AWM gross operating income: +39% YoY in Q2-21 and +41% in H1-21 ʘ AM net revenues excl. performance fees +22% YoY in Q2-21 (+16% in H1-21), mainly driven by higher average AuM, management fees and Underlying figures(2) H1-21 % Constant H1-21 % financial revenues €m Change Fx incl. Change ʘ AM perf. fees: €20m in Q2-21 in line with Q2-20 levels. Performance fees % Change H2O AM diversified across multiple affiliates Net banking income 1,586 16.3% 22.6% 1,625 9.9% ʘ Q2-21 net revenue contribution up an average ~15% YoY across affiliates in both North America and Europe Operating expenses (1,186) 9.7% 15.1% (1,214) 9.1% ʘ AWM expenses: +16% YoY in Q2-21 (+10% YoY in H1-21) mainly driven Gross operating income 400 41.4% 52.4% 411 12.3% by higher variable comp. on the back of increased profitability. Positive Income before tax jaws effect after IFRIC 21 402 45.0% 410 13.7% with a cost/income ratio(3) improving to 73.0% in Q2-21 (-3.5pp YoY) and to restatement 74.6% in H1-21 (-4.5pp YoY) Cost/income ratio(3) 74.6% (4.5)pp 74.6% (0.5)pp (1) Europe including Dynamic Solutions and Vega IM, excluding H20 AM (€17bn AuM as at 06/30/2021); US including WCM IM (2) Excluding exceptional items (see annex) (3) After IFRIC 21 restatement 49 INVESTOR PRESENTATION Global Financial Services/ Corporate and Investment Banking Strong commercial activity and improved cost of risk
Net revenues(1) (in €m) Net revenues continue to exhibit solid momentum on the back of a strong 845 929 923 1,852 commercial activity and off a low base due to the H1-20 market conditions 96 135 (mainly spreads widening and dividend mark-downs on equity products) 126 231 522 661 1,255 336 Global markets: 99 93 202 728 ʘ FIC-T revenues up YoY at €287m in Q2-21 (€617m in H1-21) with a higher 343 393 contribution from Credit, Rates and Treasury more than offsetting a lower 619 contribution from FX 321 321 167 127 108 275 ʘ Equity revenues at €108m in Q2-21 (€275m in H1-21) driving by favorable market conditions and a strong commercial successes, notably with the 33 250 330 Groupe BPCE networks 277 213 287 642 617
1 43 7 (55) Global finance: (175) 25 (7) 0 (208) ʘ Net revenues +22% YoY at €393m in Q2-21 (+18% in H1-21), driven by higher contribution from the portfolio, notably with corporates, as well as on Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 H1-20 H1-21 CVA/DVA desk FIC-T Equity Global finance Investment banking Real assets (mainly Infrastructure) and Trade finance and M&A
Investment banking/M&A: Underlying figures(2) Constant ʘ Investment banking revenues slightly down YoY in Q2-21 on the back €m % % Fx % of a lower contribution from DCM although +10% in H1-21 Q2-21 Change H1-21 Change Change ʘ M&A revenues more than doubled YoY in Q2-21 (+20% in H1-21) Net banking income 919 79.8% 1,859 56.1% 63.0% off a low base and with strong contributions from Natixis Partners and Operating expenses (583) 21.9% (1,159) 11.8% 14.9% Solomon Partners Gross operating income 336 x10.2 700 x4.5 (3) Positive jaw effect with a cost/income ratio improving to 64.3% in Q2-21 Cost of risk (28) (90.0)% (109) (76.8)% (-31.0pp YoY) and 61.4% in H1-21 (-24.0pp YoY) Income before tax Cost of risk improving and benefiting from benign Stage 3 net provisioning after IFRIC 21 303 ns 614 ns in Q2-21 restatement Cost/income ratio(3) 64.3% (31.0)pp 61.4% (24.0)pp (1) Total excluding CVA/DVA desk and other; figures at current FX (2) Excluding exceptional items (see annex) (3) After IFRIC 21 restatement 50 INVESTOR PRESENTATION Group internal solidarity & guarantee system call
Internal solidarity and guarantee system defined by law between all affiliated French Regulated Credit Institutions (FRCI) within the group DESCRIPTION BPCE SA has the legal obligation to take all necessary measures to guarantee the liquidity and the solvency of its FRCI affiliates
The French Monetary and Financial Code creates a joint solidarity fund (at BPCE SA level) immediately available (€1.283bn as of June 30, 2021) AMOUNT In addition, mobilization of the total regulatory capital of the 2 networks if needed (€56.9bn of Tier 1 capital as of June 30, 2021 )
Financial failings of any affiliated FRCI (including BPCE SA) within the group would be covered CONSEQUENCES by the aggregate Tier 1 capital of the 2 networks Only 1 credit risk and 1 senior debt rating for all affiliated FRCI within the group (excl. CFF with S&P)
BPCE SA, as the central institution, has taken measures to safeguard liquidity PREVENTION and solvency of its affiliated FRCI Examples: Natixis: guarantee mechanism on GAPC credit portfolio Crédit Foncier de France: €1.5bn capital increase in late 2011
The aggregate Tier 1 capital of the 2 networks ultimately protects the Bondholders
51 INVESTOR PRESENTATION Consolidated balance sheet
ASSETS LIABILITIES June 30, 2021 Dec. 31, 2020 June 30, 2021 Dec. 31, 2020 (in millions of euros) (in millions of euros)
Cash and amounts due from central banks 151,361 153,403 Amounts due to central banks Financial assets at fair value through profit or loss 186,044 196,260 Financial liabilities at fair value through profit or loss 162,369 191,371 Hedging derivatives 7,662 9,608 Hedging derivatives 13,523 15,262 Financial assets at fair value through shareholders' equity 50,043 49,630 Debt securities 229,051 228,201 Financial assets at amortized cost 27,218 26,732 Amounts due to credit institutions 153,187 138,416 Loans and receivables due from credit institutions 99,064 90,018 Amounts due to customers 648,664 630,837 and similar at amortized cost Revaluation difference on interest rate risk-hedged Loans and receivables due from customers at amortized cost 757,573 746,809 198 243 portfolios Revaluation difference on interest rate risk-hedged portfolios 6,833 8,941 Current tax liabilities 1,014 485 Insurance activity investments 129,175 124,566 Deferred tax liabilities Current tax assets 642 747 1,140 1,239 Deferred tax assets 3,476 3,667 Accrued expenses and other liabilities 21,476 22,662 Accrued income and other assets 14,282 16,367 Liabilities associated with non-current assets held for sale 2,173 1,945 Non-current assets held for sale 2,434 2,599 Insurance-related liabilities 121,014 114,608 Investments in associates 4,383 4,586 Provisions 5,451 6,213 Investment property 774 770 Subordinated debt 16,262 16,375 Property, plant and equipment 6,089 6,222 Shareholders' equity 76,923 78,412 Intangible assets 1,037 1,038 Equity attributable to equity holders of the parent 76,266 72,683 Goodwill 4,354 4,307 Non-controlling interests 657 5,728
TOTAL ASSETS 1,452,445 1,446,269 TOTAL LIABILITIES 1,452,445 1,446,269
52 INVESTOR PRESENTATION Statement of changes in shareholders' equity
Equity attributable to equity In millions of euros holders of the parent
December 31, 2020 72,683
Distributions (314)
Capital increase (cooperative shares) 118
Impact of acquisitions and disposals on non-controlling interests (minority interests) 1,513 O/w full impact of buyback of all Natixis minority shareholders 1,542
Income 1,856
Changes in gains & losses directly recognized in equity 433
Other (24)
June 30, 2021 76,266
53 INVESTOR PRESENTATION Non-performing loans and impairments
In billions of euros June.30, 2021 Dec.31, 2020
Gross outstanding loans to customers and credit institutions 870.3 850.4
O/w S1/S2 outstandings 847.9 828.9
O/w S3 outstandings 22.4 21.5
Non-performing loans/gross outstanding loans 2.6% 2.5%
S1/S2 impairments recognized 4.2 4.2
S3 impairments recognized 9.4 9.4
Impairments recognized/non-performing loans 42.1% 43.7%
Coverage ratio 62.6% 66.2% (including guarantees related to impaired outstandings)
54 INVESTOR PRESENTATION Breakdown of gross exposure as of June 30, 2021(1)
BREAKDOWN PER GEOGRAPHICAL REGION
Financial institutions/local governments Central administrations/ Corporate customers Central banks and other sovereign exposures 4% 2% 4%1% 4% 2% 7% 7% 8% 9%
24% 18% 15% 71% 69% 55%
France Centralization of regulated savings
Europe excluding France North & South America
Asia/Oceania Africa & the Middle East
(1) Estimate 55 INVESTOR PRESENTATION Main issuers in the market
Issuer Operator Short-term All instruments, all markets including CDs, ECP, USCP & interbank deposits BPCE / Natixis Natixis Medium & long-term BPCE SFH BPCE Covered Bonds CoFF (SCF) CFF Natixis Pfandbriefbank Natixis Senior Preferred (Unsecured) Public issues BPCE BPCE Plain vanilla private placements BPCE Natixis Structured private placements Natixis Natixis Senior Non-Preferred (Unsecured) BPCE BPCE Subordinated debt BPCE BPCE
In the money market, Banque Populaire and Caisse d’Epargne networks & other subsidiaries can issue in the domestic market (CDs & interbank deposits) BPCE and Natixis fully benefit from the Group internal solidarity and guarantee system
56 INVESTOR PRESENTATION CONTACT LIST
BPCE Roland Charbonnel +33 1 58 40 69 30 Head of Group Funding & Investor Relations [email protected] Jean-Philippe Berthaut +33 1 58 40 69 15 Head of Group Funding [email protected] François Courtois +33 1 58 40 46 69 Head of Investor Relations [email protected] France de Sury +33 1 58 40 39 95 Deputy Head of Investor Relations [email protected] Anne Sadourny +33 1 58 40 76 59 Investor Relations [email protected] Cindy Amar + 852 3915 1314 Investor Relations APAC [email protected] Marianne Medora +1 212 891 5782 Investor Relations Americas [email protected] Damien Pommier +1 212 632 2856 Investor Relations Americas [email protected]
57 INVESTOR PRESENTATION groupebpce.com