Results for the 1st quarter of 2021
May 6, 2021 Disclaimer (1/2)
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 March 31, 2021 has been drawn up in compliance with IFRS standards, as adopted in the European Union. This financial information is not 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 these financial information and the information available at the balance sheet date. Actual future results may differ from these estimates. The financial results contained in this presentation have not been reviewed by the statutory auditors. The quarterly financial information of Groupe BPCE for the period ended March 31, 2021 approved by the Management Board at the meeting convened on May 4, 2021, were verified and reviewed by the Supervisory Board at a meeting convened on May 6, 2021.
2 RESULTS FOR THE 1ST QUARTER OF 2021 Disclaimer (2/2)
This presentation has been prepared for information purposes only. It does not constitute an offer to buy, or the solicitation of an offer to sell any securities of Natixis, or an offer to sell, in any jurisdiction, including France. This document is not meant to be disseminated in any jurisdiction other than France, except in those jurisdictions where such dissemination is authorised by applicable laws and regulations. Pursuant to French laws and regulations, the offer document of BPCE, which sets out the terms and conditions of the simplified tender offer filed by BPCE on the shares of Natixis (the “Offer”), is available on the websites of the AMF (www.amf-france.org) and BPCE (www.groupebpce.com). The AMF has, in accordance with the clearance decision of the public tender offer dated April 15, 2021, affixed visa no. 21-107 on this offer document. The response document of Natixis is also available on the websites of the AMF (www.amf-france.org) and Natixis (www.natixis.com). The Offer will be opened only after the obtention of the last of the regulatory authorization described in the BPCE offer document. Pursuant to French laws and regulations, a description of the legal, financial and accounting characteristics of BPCE will be made available to the public no later than the day preceding the opening of the Offer. The dissemination, publication, or distribution of this presentation, as well as that of the Offer and its acceptance, may be subject to specific regulations and restrictions in certain jurisdictions. The Offer will not be addressed to those persons directly or indirectly subject to such restrictions. The Offer may not be accepted in any jurisdiction where the Offer is subject to such restrictions. Accordingly, persons who come into possession of this presentation should inform themselves of and observe these local restrictions. BPCE and J.P. Morgan disclaim any responsibility or liability for the violation of any such restrictions by any person. To the extent permissible under applicable laws and regulations, including Rule 14e-5 under the U.S. Securities Exchange Act, BPCE and its affiliates or its broker(s) (acting as agent or in the name and on behalf of BPCE and its affiliates, where applicable) may from time to time after the date of filing of the Offer, including other than pursuant to the Offer, directly or indirectly purchase any equity-linked securities. These purchases may occur either in the open market, on the basis of an order made at the Offer price, or in off-market transactions at a price per share equal to the Offer price. In no event will any such purchases be made for a price per share that is greater than the Offer price. No purchases will be made outside of the Offer in the United States of America by or on behalf of BPCE or its affiliates. In addition, the financial advisers to BPCE may also engage in ordinary course trading activities in securities of Natixis, which may include purchases or arrangements to purchase such securities.
3 RESULTS FOR THE 1ST QUARTER OF 2021 Groupe BPCE delivered a strong performance in Q1-21 Buoyant business momentum across all business lines Revenues +10.4%; Cost/income ratio down to 67.1%; Net income(1) +51.5%
Group revenues: €6.1bn, +10.4% Revenues RB&I: revenues +5.3%; dynamic activity in retail banking, Insurance and FSE AWM: revenue(2) generation up YoY; positive net inflows of €6bn for LT products in Q1-21 CIB: revenues continue their upward trend
Operating Cost discipline: +0.8%(3) YoY expenses Strong positive jaws effect; cost/income ratio down 6.0pp to 67.1%
Cost of risk Continued prudent provisioning: 26 bps in Q1-21, but down vs. 29 bps in Q1-20 and 49 bps in Q4-20
Underlying net income at €1bn in Q1-21, +51.5%(1) Net income Reported net income at €548m in Q1-21, x3 vs. Q1-20
Capital Strong capital position, well above requirements CET1 ratio: 16.1%(4),+492 bps over MDA trigger threshold
Project of public tender offer on Natixis shares well on track Strategic move (cleared by AMF on April 15, 2021; regulatory approvals well under way)
Underlying figures, unless otherwise indicated (1) Net income Group share excluding Coface net contribution and after IFRIC 21 restatement (2) At constant Fx (3) Excluding exceptional items and regulatory costs (4) Estimated ratio at March 31,2021 4 RESULTS FOR THE 1ST QUARTER OF 2021 1 Groupe BPCE results
2 Capital and liquidity
3 Business line results
4 Conclusion
5 RESULTS FOR THE 1ST QUARTER OF 2021 Q1-21 results – Restated figures Net income at €548m, x3 vs. Q1-20
Restated figures Q1-21 Q1-20 % Change €m
Net banking income 6,099 5,448 11.9% Operating expenses (4,641) (4,524) 2.6% o/w expenses excluding Single Resolution Fund (4,210) (4,120) 2.2% Gross operating income 1,457 925 57.6% Cost of risk (490) (504) (2.7)% Income before tax 1,043 475 x2.2 Income tax (410) (242) 69.7% Non-controlling interests (86) 11 ns
Net income – Group share excl. Coface & H2O AM net contribution 547 244 x2.2 Coface net contribution 5 (83)
H2O AM net contribution (4) 21 Reported net income – Group share 548 181 x3
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”. H2O AM is isolated on a single P&L line for its net contribution to net income. As of Q1-21, contribution to net income will only come from FX change (EUR/GBP) and only on a reported basis. See Annex for the reconciliation with the accounting view. 6 RESULTS FOR THE 1ST QUARTER OF 2021 Q1-21 results – Exceptional items Limited impact of exceptional items
€m Q1-21 Q1-20
Revaluation of assets associated with DSN denominated in Net banking income Corporate center (3) (2) foreign currencies
Contribution to the insurance guarantee fund Net banking income Insurance (7)
Legal provision Net banking income CIB (15)
Transformation and reorganization costs Net banking income/ Operating expenses / Business lines & Corporate center (64) (62) Gains or losses on other assets
Impact of Lebanon default on ADIR insurance Associates Insurance (14)
Capital loss Coface net contribution (112)
Residual stake valuation Coface net contribution 3 (6)
Exchange rate fluctuations H2O AM net contribution (6)
Total impact on income before tax (85) (203)
Total impact on net income – Group share (78) (145)
7 RESULTS FOR THE 1ST QUARTER OF 2021 Q1-21 results – Underlying figures Q1-21 net income at €1bn, driven by solid GOI growth (+45.0%)
Underlying figures Q1-21 Q1-20 % Change €m
Net banking income 6,131 5,552 10.4% Operating expenses (4,582) (4,484) 2.2% o/w expenses excluding Single Resolution Fund (4,151) (4,080) 1.7% Gross operating income 1,549 1,068 45.0% Cost of risk (490) (504) (2.8)% Income before tax 1,128 633 78.4% Income tax (412) (279) 47.7% Non-controlling interests (93) (28) x3.3 Net income – Group share excl. Coface net contribution 624 325 x2 Net income – Group share excl. Coface 1,009 666 51.5% net contribution after IFRIC 21 restatement Cost/income ratio 67.1% 73.1% (6.0)pp
8 RESULTS FOR THE 1ST QUARTER OF 2021 Q1-21 results – Operating expenses Cost discipline: operating expenses +0.8%(1) YoY
OPERATING EXPENSES(2) in €m % Change
Q1-21 / Q1-20 Retail Banking: operating expenses stable for BP and CE networks; large 2,229 BP & CE networks (0.2)% positive jaws effect in Q1-21 2,224 FSE: costs under tight control; cost/income ratio at 51.5%, -1.7pp vs. Q1-20 157 FSE (0.5)% 156 Insurance: positive jaws effect of +1pp in Q1-21 134 Insurance +3.6% 138 Payments: investments maintained in order to ensure sustainable development and despite the temporary slowdown in revenue growth 93 Payments +10.2% 102 AWM: reduction in non-compensation expenses (at constant FX) and positive jaws effect AWM 581 +2.3% 594 CIB: positive jaw effect despite higher variable costs reflecting the top-line performance of the quarter; cost/income ratio down to 58.6% CIB 559 576 +3.1%
Q1-21 operating expenses at €4.6bn, +2.2% vs. Q1-20 4,484 (2) and +0.8% excluding regulatory costs Groupe BPCE +2.2% 4,582 Strong increase in regulatory costs in Q1-21: + 14.8% at €521m Q1-20 Q1-21 o/w Single Resolution Fund €431m (1) Excluding exceptional items and regulatory costs (2) Excluding exceptional items 9 RESULTS FOR THE 1ST QUARTER OF 2021 Q1-21 results – Cost of risk/Asset quality Continued prudent provisioning: cost of risk at €490m in Q1-21
(1) COST OF RISK S1/S2 S3
49 (in bps) 45 13 21 20 23 25 10 36 (2) 17 26 20 Cost of risk NPL ratio RB&I 5 13 5 €490m 2.6% 163 -2.8% vs. Q1-20 +0.1 pp vs. Dec. 20 123 121 95 124 53 112 112 65 47 11 39 CIB 9 30 6 Cost of risk: €490m in Q1-21 vs. €504m in Q1-20 and €923m in Q4-20 55 49 32 29 29 18 26 ʘ Retail Banking & Insurance: decrease in cost of risk in Q1-21, 19 24 25 31 21 compared to a Q1-20 basis lowered by a positive methodological Groupe BPCE 12 5 5 effect (positive impact of 8 bps)
ʘ Corporate & Investment Banking: Q1-21 environment favorable (in €m) 981 923 to cost of risk improvement 585 504 526 332 490 356 420 455 591 398 Groupe BPCE 84 229 92 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21
(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) 10 RESULTS FOR THE 1ST QUARTER OF 2021 Digital & Data Increased use of Data resources and Digital services developed to benefit our customers and their advisers
Data resources and Digital services to support our customer advisers Q1-21 key figures DATA – AUTOMATION OF THE COLLECTION AND VERIFICATION OF CUSTOMER DOCUMENTS 11.1 million customers active on mobile apps +190K support documents transmitted online since the start of 2021 vs. 400K in 2020 or websites in Q1-21 +1% vs. Q4-20 +110K tax assessment notices automatically checked in Q1-21 vs. 100K for the whole of 2020
DIGITAL – DEVELOPMENT OF VIDEO CONFERENCING SOLUTIONS WITH CUSTOMERS ≈ 80% of principal active customers 34,000 advisers equipped to hold meetings with customers via video conference : + 5,000 vs. Dec.2020 using digital channels
Digital NPS 'Self-care’: fluid and secure banking operations for customers 5.3 million active Sécur-Pass customers, carrying out day-to-day operations in a secure environment: +1.4 million since Dec.2020 +42 +44.2M credit transfers via mobile phone: +30% vs. Q1-20 +2.4M beneficiaries added: +47% vs. Q1-20 Net Promoter Score +22% card transactions blocked, confirmed via mobile phone vs. Q1-20
App Store Google Play Digital subscription pathways increasingly used by our customers The addition of new functionalities and expansion to include new customer segments generated more traffic 4.4/5 4.3/5 on these pathways For example, consumer loans initiated via digital pathways in Q1-21 : 12% for the BP (+5pp vs. Q1-20) and 22% for the CE (+4pp vs. Q1-20)
11 RESULTS FOR THE 1ST QUARTER OF 2021 Groupe BPCE's commitments to society Acting in a responsible and sustainable manner for society at large
Supporting our small business and corporate customers
State-guaranteed loans: more than €32 billion disbursed at the end of April (approximately 207,500 loans)
Promoting the development of long-term financing for social housing in France Social and Renewal of the partnership between the Caisse d'Epargne network and the Fédération des Offices Publics de l'Habitat (Federation of Public Housing Offices, or OPH) to support social housing in the regions environmental In this way, the OPHs will enjoy access to very long-term private financing at a fixed rate (dedicated envelope: €200m) responsibility at the heart Supporting the energy transition of our activities Caisse d’Epargne: rollout of a virtuous initiative for the recycling of bank cards as bankers Banque Populaire: launch of the Agrilismat Green offering to develop financing for eco-friendly equipment and insurers related to sustainable agriculture and energy Financing of Champvoisin: a new 12 MW French wind farm developed by RP Global (investment pool comprised of the Caisse d'Epargne Aquitaine Poitou-Charentes and the Caisse d'Epargne Bretagne Pays de Loire as lenders, with BPCE Energéco and Hélia Conseil acting as arrangers)
Financing by BPCE Lease, in association with Natixis and Intesa Sanpaolo, of the Milan-based FERA Srl company for the construction of two new wind farms in the Savona region by 2021, with a total capacity of 20.8 MW Financing renewable energy projects: 4 new projects representing 1,970MW installed capacity and €517m arranged amount financed in Q1-21
12 RESULTS FOR THE 1ST QUARTER OF 2021 1 Groupe BPCE results
2 Capital and liquidity
3 Business line results
4 Conclusion
13 RESULTS FOR THE 1ST QUARTER OF 2021 Capital and Loss-absorbing Capacity Strong capital and TLAC/MREL positions, well above the requirements
CHANGE IN THE CET1 RATIO (in bps)
16.1% 16.0% +11bps +4bps +3bps Requirements Actual levels March 31, as at (10)bps 2021 March 31, 2021(1,3) CET1 ratio 9.32%(2) 16.1% (ECB) Total capital ratio 13.26%(2) 18.2% (ECB) CET1 ratio Retained Change in Issuance Other CET1 ratio at Dec. 31, 2020 earnings risk-weighted and distribution changes at March 31, assets of cooperative 2021 TLAC ratio 19.51% 23.9% shares (FSB) Subordinated 19.5%(3) 23.9% MREL ratio (SRB)
CET1 capital equal to €69.7bn(1) as at March 31, 2021 Total MREL ratio 25.0%(3) 30.7% (SRB) Total loss-absorbing capacity stood at €103.6bn(1) as at March 31, 2021 Leverage ratio equal to 5.4%(1,4,5) as at March 31, 2021
Capital adequacy, Total loss-absorbing capacity – see note on methodology (1) Estimate at March 31, 2021 (2) Excluding “Pillar 2 Guidance” (3) No inclusion of Senior Preferred debt to calculate TLAC and subordinated MREL ratios (4) Excluding temporary deduction of Eurosystem central bank exposures from the denominator of the leverage ratio, it would amount to 4.9% (5) The leverage ratio would amount to 5.8% after excluding the centralized outstandings of regulated savings from the calculation of the denominator of the ratio, subject to the agreement of the ECB and following the decision of July 13, 2018 of the General Court of the European Union
14 RESULTS FOR THE 1ST QUARTER OF 2021 Liquidity ≈54% of the 2021 MLT wholesale funding plan(1) raised as at 30 April 2021
MLT wholesale funding: revised 2021 plan and execution YTD(2) Structure of MLT wholesale funding(3) (1) (1,2) ʘ €22bn : €11.8bn raised YTD or ≈54% raised in 2021 YTD(2) • €4bn of Tier 2 and/or Senior Non-Preferred debt: €2.1bn of SNP raised YTD(2) • €7.5bn of Senior Preferred debt: €4.4bn raised YTD(1,2) Unsecured bond • €10.5bn of Covered Bonds: €5.3bn raised YTD(2) issues (2) 53% ʘ Asset-Backed Securities target: €1.5bn; €0.4bn raised YTD 43% Covered bond issues
Landmark transactions increasing investor diversification ABS ʘ Largest ever bond issue in USD by BPCE on January 12: $3bn in 2 tranches; 3% 5-year Senior Preferred and 11NC10 Senior Non-Preferred ʘ Senior Preferred bond issue in GBP on March 15: £450m with a 4.8-year maturity Diversification of the investor base/ (2) ʘ Dual tranche bond issue in AUD on April 13: A$750m in 2 tranches; 5-year unsecured MLT wholesale funding raised in 2021 YTD Senior Preferred and 7NC6 Senior Non-Preferred 5%1% USD 5% TLTRO III GBP ʘ TLTRO III outstanding amount: €97.2bn at end-March 2021 Foreign 56% AUD ʘ Repayment at maturity fully integrated in our MLT funding plans currencies JPY 44% 33% Others High liquidity levels EUR ʘ Average monthly LCRs in Q1-21: 165% ʘ Liquidity reserves: €318bn at end-March 2021 ʘ Coverage ratio of short-term debt obligations: 234% at end-March 2021
(1) Excluding structured private placements and asset-backed securities and instead of an initial plan of €22bn to €25bn (2) As at 30 April 2021 (3) Excluding structured private placements 15 RESULTS FOR THE 1ST QUARTER OF 2021 1 Groupe BPCE results
2 Capital and liquidity
3 Business line results
4 Conclusion
16 RESULTS FOR THE 1ST QUARTER OF 2021 Retail Banking & Insurance Very good quarter driven by strong commercial momentum; Large positive jaws effect and prudent provisioning
Loan outstandings: €621bn, +11.3% YoY On-balance sheet deposits & savings(1): o/w residential mortgages +8.3% YoY €535bn, +11.0% YoY o/w consumer loans +2.6% YoY o/w sight deposits +22.8% YoY o/w equipment loans +5.6% YoY o/w State-guaranteed loans: €28.9bn
NET BANKING INCOME(5)
Underlying figures(2) Q1-21 % Change +5.8% +2.4% +5.1% +3.9% €m
Net banking income 4,298 5.3% 3,471 Operating expenses (2,745) 0.3% 3,282 288 295 229 240 113 117 Gross operating (6) 1,553 15.4% BP + CE networks FSE Insurance Payments income (5) Cost of risk(3) (387) 28% OPERATING EXPENSES Income before tax BP + CE networks FSE Insurance Payments after IFRIC 21 1,269 10.7% (134) (138) (93) restatement (2,229) (2,224) (157) (156) (102) Cost/income ratio(4) 61.9 % (3.0)pp
(0.2)% (0.5)% +3.6% +10.2% Q1-20 Q1-21 (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 17 RESULTS FOR THE 1ST QUARTER OF 2021 Retail Banking & Insurance – Banques Populaires Strong increase in GOI: +19.7% in Q1-21
LOAN OUTSTANDINGS - in €bn - DEPOSITS & SAVINGS PRODUCTION
+ 15.7 % + 12.8 % 107 Retail market – P&C 335 +50% In thousands of contracts 264 297 72 228 18 Off-balance sheet D&S 81 70 Retail market – Personal 16 57 69 +21% Centralized regulated protection 13 In thousands of contracts savings + 11.2 % Consumer loans 1.0 1.2 +15% On-balance sheet D&S, 214 238 In €bn March 2020 March 2021 excluding centralized items Q1-20 Q1-21 State-guaranteed loans March 2020 March 2021
Underlying figures(1) Q1-21 % Change +5.8% + 15.1% (2.0)% €m
Net banking income 1,669 6.2% 1,670 Operating expenses (1,071) (0.1)% 1,579 1,013 Gross operating income 598 19.7% 880 662 648 Cost of risk(2) (165) 41.8% (4) (4) Income before tax Net banking income Net interest income Commissions 478 12.6% after IFRIC 21 restatement Cost/income ratio(3) 62.3 % (3.8)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 18 RESULTS FOR THE 1ST QUARTER OF 2021 Retail Banking & Insurance – Caisses d’Epargne Strong increase in GOI: +21.9% in Q1-21
LOAN OUTSTANDINGS - in €bn - DEPOSITS & SAVINGS PRODUCTION
+8.4% 484 +8.7% 175 446 +28% Retail market – P&C 136 In thousands of contracts 320 139 9 134 295 Off-balance sheet D&S 155 +34% Retail market – Personal 60 116 protection 56 In thousands of contracts Centralized regulated savings +11.2% 2.1 2.6 +24% Consumer loans 285 In €bn On-balance sheet D&S, 256 March 2020 March 2021 excluding centralized items Q1-20 Q1-21 State-guaranteed loans March 2020 March 2021
Underlying figures(1) Q1-21 % variation €m +5.7% +9.2% +1.9%
Net banking income 1,795 6.6% 1,800 Operating expenses (1,153) (0.4)% 1,703 1,006 Gross operating income 643 21.9% 922 801 816 Cost of risk(2) (153) 26.1% (4) Income before tax Net banking income Net interest income(4) Commissions 527 19.0% after IFRIC 21 restatement Cost/income ratio(3) 62.1% (4.4)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 19 RESULTS FOR THE 1ST QUARTER OF 2021 Retail Banking & Insurance – Financial Solutions & Expertise Commercial dynamism of the business activities compared to a high base in Q1-20; Positive jaws effect
Business activities Breakdown of revenues per business line in Q1-21 ʘ Consumer credit: very good sales momentum in personal loans, +22% in new loan production vs. Q1-20 in both retail banking networks 7% 3% 23% ʘ Sureties & financial guarantees: continued strong activity, particularly 12% Consumer credit in loan guarantees (premiums written +5% vs. Q1-20) Sureties & financial guarantees Retail securities services ʘ Retail securities services: good quarter driven by growth in the number of stock Leasing market transactions in France compared to a very strong 2020 base €295m Factoring (+8% vs. Q1-20) 22% Socfim ʘ Leasing: good level of new equipment leasing business (+5% vs. Q1-20) 24% Other with a marked upturn in activities with the retail banking networks Very high level of long-term vehicle leasing orders in March enabling the business 9% to achieve its best Q1 ever (+38% vs. Q1-20) ʘ Factoring: recovery in activities in March with factored sales in line with those generated in March 2020 Underlying figures(1) Q1-21 % change €m ʘ Socfim: high level of new production in Q1-21 Net banking income 295 2.4% Results Operating expenses (156) (0.5)% ʘ Net banking income: good performance in Q1-21 (+2.4% vs. Q1-20), Gross operating income 139 5.8% mainly driven by leasing and Socfim activities Cost of risk (31) 25.2% Income before tax ʘ Operating expenses: good cost discipline (-0.5% vs. Q1-20) 112 1.9% after IFRIC 21 restatement ʘ Cost of risk: 25% increase reflecting prudent risk provisioning Cost/income ratio(2) 51.5% (1.7)pp
(1) Excluding exceptional items (see annex) (2) After IFRIC 21 restatement 20 RESULTS FOR THE 1ST QUARTER OF 2021 Retail Banking & Insurance - Insurance Scope: Insurance division of Natixis Solid commercial activity and financials
Life(1) and Personal protection insurance Premiums(1) In €bn Life insurance AuMs(1)
ʘ Total life insurance AuMs at €75.7bn at end-March 2021 +32% 4.3 €3.5bn of gross inflows and €2.3bn net inflows for Life insurance 72.7 75.7 in Q1-21, up vs. Q1-20 with a strong dynamism in January/February 3.2 (+18% YoY) 27% 27% +4% P&C % share Insurance of Unit- P&C Insurance Linked products Life ʘ Equipment rate: BP network at 28.7% (+0.8pp QoQ) +36% and CE network at 32.1% (+0.6pp QoQ) and Personal protection ʘ Earned premium growth of 4% in Q1-21 Q1-20 Q1-21 ʘ Combined ratio: 92.8% in Q1-21, +2.5pp YoY Dec. 2020 March 2021
Underlying figures(2) Q1-21 % Change €m ʘ Net revenues: +5.1% YoY in Q1-21 Net banking income 240 5.1% ʘ Cost/income ratio at 52.7%(3) in Q1-21, slightly up vs. Q1-20 Operating expenses (138) 3.6% ʘ GOI growth: +7.4% YoY in Q1-21 Gross operating income 102 7.4% Income before tax 116 2.3% after IFRIC 21 restatement Cost/income ratio(3) 52.7% 0.8pp
(1) Excluding the reinsurance agreement with CNP (2) Excluding exceptional items (see annex) (3) After IFRIC 21 restatement 21 RESULTS FOR THE 1ST QUARTER OF 2021 Retail Banking & Insurance – Payments / Oney Bank
PAYMENTS Net revenues up 4% YoY in Q1-21 despite COVID-related restriction measures Scope: Payments division of Natixis in France ʘ Payment Processing & Services: number of card transactions processed up 2% Underlying figures(1) Q1-21 % Change vs. Q1-20. Contactless transactions accounting for ~45% of transactions €m in Q1-21, significantly up YoY (~31% in Q1-20). Strong growth of instant payment transactions (x2.1 vs. Q1-20) Net banking income 117 3.9% ʘ Digital: PayPlug continues to benefit from its positioning across small and Operating expenses (102) 10.2% medium-sized merchants (business volumes x2.1 YoY in Q1-21) and with strong Gross operating income 15 (25.9)% growth across Groupe BPCE retail networks (business volumes x4.7 YoY Income before tax 15 (31.0)% in Q1-21). Dalenys featuring dynamic activity levels with business volume growth after IFRIC 21 restatement at +30% YoY in Q1-21 ʘ Benefits: issuing volumes for the reward activities (Titres Cadeaux) +17% YoY in Q1-21 and 23% YoY for meal vouchers
ONEY BANK Underlying figures(1) Q1-21 % Change Outstanding loans: €2.5bn in Q1-21, down 4% €m ʘ Mainly due to the drop in consumer loans caused by health restrictions affecting physical points of sale Net banking income 103 (6.0)% Loan production: +10.0% vs. Q1-20 at €766m Operating expenses (72) (2.8)% ʘ Sharp increase in “Split payment solution 3x4x”: +33% at €357m Gross operating income 32 (12.5)% Q1-21 breakdown of loan Split payment solution 47% (3x4x) Cost of risk (20) (16.7)% production by product Assigned credit €766m 34% Income before tax 12 (2.5)% Revolving credit after IFRIC 21 restatement Cost/income ratio(2) 69.0% 2.0pp 8% Personal loans 11% (1) Excluding exceptional items (see annex) (2) After IFRIC 21 restatement 22 RESULTS FOR THE 1ST QUARTER OF 2021 Asset & Wealth Management Continued AuM growth and fee rate sustained at ~37bps(1)
Assets under management(2) (in €bn)
AuMs: +3% QoQ with positive net inflows, market effect and FX impact Controlling affiliates WCM IM 22 1,153 9 6 74 AM net inflows(1): ~€6bn on LT products in Q1-21 driven by North 1,117 American affiliates across fixed income and equity strategies 67 (2) ʘ Positive net inflows at Harris Associates (AuM now >$115bn) driven by institutional accounts 1,079 ʘ Flat flows into European affiliates with a continued strong momentum for 1,050 ESG strategies and private assets offsetting outflows on life insurance products 833 ʘ US and International distribution platforms supportive of the flow dynamics with >€20bn of net inflows on LT products over the last 12 months AuMs at Net flows Net flows Market FX impact/ AuM at 12/31/2020 LT products MM products effect Other 03/31/2021 excl. H2O excl. H2O
AWM gross operating income: +44.1% YoY (3) ʘ AM net revenues excl. performance fees: +10% YoY, mainly driven Underlying figures Q1-21 % Constant Q1-21 % by higher management fees and financial revenues €m Change Fx incl. Change % Change H2O AM ʘ AM perf. fees: €18m in Q1-21 vs. €3m in Q1-20 (excl. H2O AM). Performance fees mainly coming from Loomis Net banking income(4) 755 11.1% 17.4% 773 (0.1)% ʘ Net revenue contribution up YoY across affiliates in both North America Operating expenses (581) 3.9% 9.0% (594) 2.3% and Europe ʘ AWM expenses: +4% YoY, including a -4% YoY reduction in AM Gross operating income 174 44.1% 58.1% 179 (7.4)% non-comp. expenses (at constant exchange rate) Income before tax (3) Positive jaw effect and cost/income ratio going down to 76.4% after IFRIC 21 177 41.3% 180 (8.9)% (81.7% in Q1-20) restatement Cost/income ratio(5) 76.4% (5.2)pp (5.8)pp 76.4% 1.8pp
(1) Excl. Ostrum AM (2) Asset Management: Europe including Dynamic Solutions and Vega IM, excluding H20 AM (€18bn AuM as at 03/31/2021); US including WCM IM (3) Excluding exceptional items (see annex) (4) Including H2O AM at constant Fx: +4.9% (5) After IFRIC 21 restatement 23 RESULTS FOR THE 1ST QUARTER OF 2021 Corporate & Investment Banking Strong increase in revenues: +38.3% YoY
Net revenues(1) (in €m) Global markets: 845 929 ʘ FICT revenues up QoQ at €330m in Q1-21, although down YoY due 96 733 126 to a lower contribution from Treasury and FX that benefited from the high 522 661 103 market volatility of end Q1-20. Solid growth in Credit 336 99 93 ʘ Equity revenues at €167m in Q1-21 on the back of favorable market 343 298 Investment banking conditions and a strong commercial activity, notably with Groupe BPCE retail & M&A networks 321 321 167 Global finance 127 Equity Global finance: 33 FIC-T 365 250 330 ʘ Net revenues at €336m in Q1-21, +13% YoY, driven by higher portfolio 277 213 revenues generated with corporates as well as on Real estate and CVA/DVA desk Infrastructure notably 1 43 (56) (175) 25 7 (33) Investment banking/M&A: Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 ʘ Investment banking revenues benefiting from strong activity levels in DCM in Q1-21 Underlying figures(2) Constant ʘ M&A revenues down YoY on a good Q1-20 €m % Fx Q1-21 Change % Change Net banking income 940 38.3% 43.3% Cost/income ratio: at 58.6% in Q1-21, with a positive jaw effect despite higher Operating expenses (576) 3.1% 5.9% variable costs reflecting the top-line performance Gross operating income 364 x3.0 x3.3 Cost of risk (81) (58.2)% Cost of risk: improving and benefiting from Q1-21 environment although still Income before tax 311 ns at elevated levels with impairments notably coming from Tourism and Aviation after IFRIC 21 restatement Cost/income ratio(3) 58.6% (19.4)pp (20.0)pp
(1) Total excluding CVA/DVA desk and other; figures at current FX (2) Excluding exceptional items (see annex) (3) After IFRIC 21 restatement 24 RESULTS FOR THE 1ST QUARTER OF 2021 1 Groupe BPCE results
2 Capital and liquidity
3 Business line results
4 Conclusion
25 RESULTS FOR THE 1ST QUARTER OF 2021 Conclusion
Strong foundations for the upcoming 2021-2024 strategic plan
Solid quarter, driven by dynamic business growth across all business lines
Revenue growth and cost discipline leading to significant improvement in cost/income ratio
Continued prudent provisioning
Strong capital and liquidity positions, well above requirements
Project of public tender offer on Natixis shares well on track
Next strategic plan to be presented in July 2021
Comments based on underlying figures, excluding Coface net contribution
26 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes
27 RESULTS FOR 1ST QUARTER OF 2021 Annexes Content
Consolidated results of Groupe BPCE Retail Banking & Insurance ʘ Note on methodology ʘ Income statement and quarterly series ʘ Reconciliation of restated data to reported data ʘ Banque Populaire and Caisse d’Epargne – quarterly series ʘ Income statement: reconciliation of alternative ʘ Deposits & savings and loan outstandings performance measures to reported data ʘ Banque Populaire network – Deposits & savings and loan outstandings ʘ Reconciliation of pro forma data to reported data ʘ Caisse d’Epargne network – Deposits & savings and loan outstandings ʘ Exceptional items and IFRIC 21 effects ʘ FSE – quarterly series per business line ʘ Insurance – quarterly series ʘ Restated quarterly income statements ʘ Payments – quarterly series per business line and quarterly series ʘ Other networks – quarterly series ʘ Consolidated balance sheet Asset and Wealth Management Financial structure ʘ Quarterly series ʘ Statement of changes in shareholders' equity ʘ Financial structure: changes in regulatory Corporate & Investment Banking capital and fully-loaded ratios ʘ Quarterly series ʘ Financial structure: MDA trigger threshold ʘ Prudential ratios and credit ratings Corporate center ʘ Risk-weighted assets ʘ Restated quarterly series ʘ Leverage ratio Risks ʘ Financial conglomerate ʘ Performing & non-performing loans and impairment ʘ Liquidity ʘ Cost of risk in bps ʘ Asset quality ʘ Breakdown of gross exposure
28 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Note on methodology (1/4)
Presentation of restated quarterly results Following the announcement on February 25, 2020 of the sale of a In its capacity as the central institution, BPCE SA organizes, coordinates 29.5% stake in Coface, all impacts relating to this transaction are and supervises a certain number of activities or services on behalf of the shown, for financial communication purposes, on a separate line in the Group and, notably, of the Banque Populaire and Caisse d'Epargne income statement entitled “Coface net contribution” (at the level of the retail banking networks (strategic oversight, coordination of commercial Corporate center and Groupe BPCE). Q1-20 has been restated policies, centralized management of refinancing, major projects, etc.). accordingly. The contribution of the central institution is presented under the From an accounting standpoint, the Coface capital loss in respect of Corporate center division. 2020 is classified under “Gains or losses on other assets” and the impairment loss on the residual stake in Coface is recorded under The rules governing the re-invoicing by BPCE SA of expenses recorded “Share in net income of associates.” with respect to the missions it pursues in its central institution capacity were modified in the fourth quarter of 2020. As a result and for Following the evolution in the Asset & Wealth Management’s comparison purposes, the 2019 and 2020 quarterly income statements organization since January 1st, 2021, the 2020 quarterly series have of the Retail Banking & Insurance and Corporate center divisions have been restated. been restated for past periods. During Q1-21, the final memorandum of understanding regarding the sale of Natixis’ 50.01% stake in H2O AM to the management of the Exceptional items company has been signed. The exceptional items and the reconciliation of the restated income The 2020 quarterly series have been restated to isolate the net statement to the income statement reported by Groupe BPCE are contribution of H2O AM on a single line item at the bottom of the income included in an annex to this document. statement. The other income statement line items (net revenues, expenses…) are now being presented excluding H2O AM. In 2021, the contribution of H2O AM to the income statement will be limited to the EUR/GBP evolution which will be classified as an exceptional item.
29 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Note on methodology (2/4)
Restatement of the impact of IFRIC 21 Operating expenses The results, cost/income ratios and ROE, after being restated The operating expenses correspond to the aggregate total of the to account for the impact of IFRIC 21, are calculated on the basis “Operating Expenses” (as presented in the Group’s registration of ¼ of the amount of taxes and contributions resulting from the document, note 4.7 appended to the consolidated financial statements interpretation of IFRIC 21 for a given quarter, or ½ of the amount of of Groupe BPCE) and “Depreciation, amortization and impairment for taxes and contributions resulting from the interpretation of IFRIC 21 for a property, plant and equipment and intangible assets.” 6-month period. In practice, for Groupe BPCE, the principal taxes concerned by IFRIC 21 are the company social solidarity contribution Cost of risk (C3S) and contributions and levies of a regulatory nature (systemic risk tax levied on banking institutions, contribution to ACPR control costs, The cost of risk is expressed in basis points and measures the level of contribution to the Single Resolution Fund and to the Single Supervisory risk per business line as a percentage of the volume of loan Mechanism). outstandings; it is calculated by comparing net provisions booked with respect to credit risks of the period to gross customer loan outstandings at the beginning of the period. Net banking income Customer net interest income, excluding regulated home savings Loan outstandings and deposits & savings schemes, is computed on the basis of interest earned from transactions with customers, excluding net interest on centralized savings products Restatements regarding transitions from book outstandings (Livret A, Livret Développement Durable, Livret Epargne Logement to outstandings under management are as follows: passbook savings accounts) in addition to changes in provisions for ʘ Deposits & savings: the scope of outstandings under management regulated home purchase savings schemes. Net interest on centralized does not include debt securities (certificates of deposit and savings savings is assimilated to commissions. bonds). ʘ Loan outstandings: the scope of outstandings under management does not include securities classified as customer loans and receivables and other securities classified as financial operations.
30 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Note on methodology (3/4)
Digital indicators The percentage of consumer loans initiated via digital pathways is the The change of the number of active Secur'pass customers is the number number of consumer loans initiated via digital pathways that have of active Secur'pass customers at the end of the reported period effectively been released / Total number of consumer loans released. compared YoY with the number of active Secur'pass customers. The percentage of principal active customers using banking services via all channels during the year is the proportion of principal banking customers making at least one visit via any digital channel over the past 12 months. Capital adequacy The scores on the App Store online stores are the average of all scores Common Equity Tier 1 is determined in accordance with the applicable awarded by users as at the end of the reported period. CRR II/CRD V rules, after deduction, following the instructions of the The Digital NPS is the digital net promoter score awarded by customers; supervisory authorities, of irrevocable payment commitments. it ranges from -100 to +100. Additional Tier-1 capital takes account of subordinated debt issues The change in the number of credit transfers is the number of credit that have become non-eligible and subject to ceilings at the phase-out transfers confirmed via mobile devices compared YoY with the number rate in force. of credit transfers confirmed via mobile devices. The leverage ratio is calculated using the rules of the Delegated Act The change in the number of beneficiaries added is the number of published by the European Commission on October 10, 2014, without beneficiaries added via mobile devices compared YoY with the number transitional measures. Securities financing operations carried out with of beneficiaries added via mobile devices. clearing houses are offset on the basis of the criteria set forth in IAS 32, The change in the number of blocked credit card transactions is the without consideration of maturity and currency criteria. Following the number of blocked credit card transactions confirmed via mobile devices decision of July 13, 2018 handed down by the General Court of the compared YoY with the number of blocked credit card transactions European Union, Groupe BPCE again requested the agreement of the confirmed via mobile devices. ECB to exclude the centralized outstandings of regulated savings from The number of support documents transmitted is the number of support the calculation of the denominator of the ratio. documents transmitted online (web and mobile) for the reported period (Adobe Analytics figure).
31 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Note on methodology (4/4)
Total loss-absorbing capacity Liquidity The amount of liabilities eligible for inclusion in the numerator Total liquidity reserves comprise the following: used to calculate the Total Loss-Absorbing Capacity (TLAC) ratio is ʘ Central bank-eligible assets include: ECB-eligible securities not determined on the basis of our understanding of the Term Sheet eligible for the LCR, taken for their ECB valuation (after ECB haircut), published by the FSB on November 9, 2015: “Principles on Loss- securities retained (securitization and covered bonds) that are Absorbing and Recapitalization Capacity of G-SIBs in Resolution.” available and ECB-eligible taken for their ECB valuation (after ECB Please note that a quantum of Senior Preferred securities has not been haircut) and private receivables available and eligible for central bank included in our calculation of TLAC. funding (ECB and the Federal Reserve), net of central bank funding. So this amount is comprised of the following 4 items: ʘ LCR eligible assets comprising the Group’s LCR reserve taken for ʘ Common Equity Tier 1 in accordance with the applicable their LCR valuation. CRR II/CRD V rules, ʘ Liquid assets placed with central banks (ECB and the Federal ʘ Additional Tier-1 capital in accordance with the applicable Reserve), net of US Money Market Funds deposits and to which CRR II/CRD V rules, fiduciary money is added. ʘ Tier-2 capital in accordance with the applicable CRR II/CRD V rules, Short-term funding corresponds to funding with an initial maturity of less ʘ Subordinated liabilities not recognized in the capital mentioned above than, or equal to, 1 year and the short-term maturities of medium-/long- and whose residual maturity is greater than 1 year, namely: term debt correspond to debt with an initial maturity date of more than 1 year maturing within the next 12 months. • The share of additional Tier-1 capital instruments not recognized in common equity (i.e. included in the phase-out), • The share of the prudential discount on Tier-2 capital instruments Customer deposits are subject to the following adjustments: whose residual maturity is greater than 1 year, ʘ Addition of security issues placed by the Banque Populaire and • The nominal amount of Senior Non-Preferred securities maturing in Caisse d’Epargne retail banking networks with their customers, and more than 1 year. certain operations carried out with counterparties comparable to customer deposits ʘ Withdrawal of short-term deposits held by certain financial customers collected by Natixis in pursuit of its intermediation activities.
32 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Reconciliation of restated data to reported data
GROUPE GROUPE BPCE BPCE
In millions of euros Q1-21 Coface H2O AM Q1-21 Q1-20 Coface H2O AM Q1-20 Reported Restated reported restated
Net banking income 6,117 (19) 6,099 5,543 (95) 5,448 Operating expenses (4,655) 14 (4,641) (4,546) 22 (4,524) Gross operating income 1,462 (5) 1,457 997 (73) 925 Cost of risk (490) (490) (504) (504) Share in net income of associates 77 (8) 69 47 6 53 Gains or losses on other assets (1) 8 7 (111) 112 1 Income before tax 1,048 (8) 3 1,043 430 118 (73) 475 Income tax (412) 2 (410) (256) 14 (242) Non-controlling interests (88) 2 (86) 8 (35) 38 11 Net income – excl. Coface & H O AM net 2 (5) 4 547 83 (21) 244 contribution
Coface – Net contribution 5 (83)
H2O AM – Net contribution (4) 21
Net income – Group share 548 548 181 181
33 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Q1-21 results: reconciliation of alternative performance measures to restated data
Net Operating Income Net income banking expenses before tax - Group income share excluding In millions of euros Coface
Restated Q1-21 results 6,099 (4,641) 1,043 547
H2O restatement (19) 14 3 4
Revaluation of assets associated with deeply subordinated notes denominated Corporate center (3) (3) (10) in foreign currencies Business lines/ Transformation and reorganization costs 4 (73) (64) (59) Corporate center
Legal provision (15) (15) (8)
Exchange rate fluctuations H2O AM (6) (4)
Q1-21 results 6,131 (4,582) 1,128 624 excluding exceptional items & Coface net contribution
34 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Q1-20 results: reconciliation of alternative performance measures to restated data
Net Operating Associates Income Net income banking expenses before tax - Group income share excluding In millions of euros Coface
Restated Q1-20 results 5,448 (4,524) 53 475 244
H2O restatement (95) 22 (73) (21)
Revaluation of assets associated with deeply subordinated notes Corporate center (2) (2) (6) denominated in foreign currencies Business lines/ Transformation and reorganization costs (62) (62) (42) Corporate center
Impact of Lebanon default on ADIR insurance Insurance (14) (14) (10)
Contribution to the insurance guarantee fund Insurance (7) (7) (3)
Q1-20 results 5,552 (4,484) 67 633 325 excluding exceptional items & Coface net contribution
35 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes 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
Asset & Wealth Q1-20 Q2-20 Q3-20 Q4-20 Management 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 680 (557) 123 54 684 (527) 149 73 720 (563) 148 67 1,012 (684) 322 153
Analytical adjustments (2) (2) (1) (2) (2) (1) 1 (2) (1) (1) 1 (2) (1) (1)
Pro forma figures – 680 (559) 121 53 684 (529) 147 71 720 (565) 147 67 1,012 (685) 321 152 excl. H2O AM net contribution
36 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Reconciliation of 2020 data to pro forma data (2/2)
Corporate & Q1-20 Q2-20 Q3-20 Q4-20 Investment Banking 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 688 (557) (61) (33) 519 (477) (230) (120) 703 (510) (4) (3) 894 (555) 190 98
Analytical adjustments (8) (1) (9) (5) (8) (1) (9) (5) (9) (1) (10) (5) (8) (1) (9) (5)
Pro forma figures 680 (559) (70) (38) 511 (478) (240) (124) 695 (512) (13) (8) 885 (556) 181 93
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 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Exceptional items and IFRIC 21 effects per business line
Q1-21 RETAIL BANKING AWM CIB CORPORATE GROUPE BPCE In millions of euros & INSURANCE CENTER Impact of exceptional items (15) (6) (22) (39) (82) (excl. Coface & H2O) Impact of IFRIC 21 (87) (4) (25) (351) (467) Total impact on Income before tax (102) (10) (47) (390) (549) BANQUE POPULAIRE CAISSE D'EPARGNE FSE INSURANCE PAYMENTS OTHER NETWORKS RETAIL BANKING In millions of euros NETWORK NETWORK & INSURANCE Impact of exceptional items (7) (5) (1) 0 (1) (15) Impact of IFRIC 21 (32) (37) (4) (12) (1) (2) (87) Total impact on Income before tax (39) (42) (5) (12) (2) (2) (102)
Q1-20
RETAIL BANKING AWM CIB CORPORATE GROUPE BPCE In millions of euros & INSURANCE CENTER Impact of exceptional items (79) (6) (85) (excl. Coface & H2O) Impact of IFRIC 21 (90) (4) (28) (304) (426) Total impact on Income before tax (169) (4) (28) (298) (511)
BANQUE POPULAIRE CAISSE D'EPARGNE FSE INSURANCE PAYMENTS OTHER NETWORKS RETAIL BANKING In millions of euros NETWORK NETWORK & INSURANCE Impact of exceptional items (20) (19) (2) (21) 0 (17) (79) Impact of IFRIC 21 (33) (37) (3) (15) (1) (2) (90) Total impact on Income before tax (53) (55) (5) (26) (1) (19) (169)
38 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Groupe BPCE: restated quarterly income statement per business line
CORPORATE RETAIL BANKING ASSET & WEALTH CORPORATE GROUPE & INVESTMENT & INSURANCE MANAGEMENT CENTER BPCE BANKING
In millions of euros Q1-21 Q1-20pf Q1-21 Q1-20pf Q1-21 Q1-20pf Q1-21 Q1-20pf Q1-21 Q1-20pf %
Net banking income 4,298 4,076 755 680 925 680 121 13 6,099 5,448 11.9%
Operating expenses (2,760) (2,794) (587) (559) (583) (559) (711) (612) (4,641) (4,524) 2.6%
Gross operating income 1,538 1,281 168 121 342 121 (590) (598) 1,457 925 57.6%
Cost of risk (387) (302) (2) 1 (81) (194) (20) (8) (490) (504) (2.7)%
Income before tax 1,167 977 167 121 264 (70) (555) (553) 1,043 475 x2.2
Income tax (340) (306) (43) (39) (66) 19 39 84 (410) (242) 69.7%
Non-controlling interests (32) (24) (43) (29) (58) 13 47 51 (86) 11 ns Net income – excl. Coface & H2O AM 796 646 80 53 139 (38) (468) (418) 547 244 x2.2 net contribution
Coface – Net contribution 5 (83) 5 (83) ns
H2O – Net contribution (4) 21 (4) 21 ns
Net income – 796 646 76 74 139 (38) (463) (501) 548 181 x3 Group share
39 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Groupe BPCE: restated quarterly series
GROUPE BPCE
In millions of euros Q1-20pf Q2-20pf Q3-20pf Q4-20pf Q1-21
Net banking income 5,448 5,163 5,487 6,312 6,099
Operating expenses (4,524) (3,827) (3,894) (4,343) (4,641)
Gross operating income 925 1,335 1,593 1,969 1,457
Cost of risk (504) (981) (589) (924) (490)
Income before tax 475 271 1,093 1,116 1,043
Net income – excl. Coface & H2O AM net contribution 244 148 713 654 547
Coface – Net contribution (83) (19) (29) (5) 5
H2O – Net contribution 21 2 (10) (27) (4)
Net income – Group share 181 131 674 624 548
40 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Consolidated balance sheet
ASSETS LIABILITIES March 31, 2021 Dec. 31, 2020 March 31, 2021 Dec. 31, 2020 (in millions of euros) (in millions of euros)
Cash and amounts due from central banks 180,452 153,403 Amounts due to central banks Financial assets at fair value through profit or loss 199,117 196,260 Financial liabilities at fair value through profit or loss 187,798 191,371 Hedging derivatives 8,146 9,608 Hedging derivatives 13,906 15,262 Financial assets at fair value through shareholders' equity 51,192 49,630 Debt securities 236,099 228,201 Financial assets at amortized cost 26,795 26,732 Amounts due to credit institutions 159,212 138,416 Loans and receivables due from credit institutions 97,768 90,018 Amounts due to customers 645,169 630,837 and similar at amortized cost Revaluation difference on interest rate risk-hedged Loans and receivables due from customers at amortized cost 752,597 746,809 189 243 portfolios Revaluation difference on interest rate risk-hedged portfolios 7,302 8,941 Current tax liabilities 986 485 Insurance activity investments 126,090 124,566 Deferred tax liabilities Current tax assets 672 747 1,166 1,239 Deferred tax assets 3,600 3,667 Accrued expenses and other liabilities 21,148 22,662 Accrued income and other assets 14,539 16,367 Liabilities associated with non-current assets held for sale 1,971 1,945 Non-current assets held for sale 2,210 2,599 Insurance-related liabilities 117,760 114,608 Investments in associates 4,446 4,586 Provisions 5,695 6,213 Investment property 775 770 Subordinated debt 16,442 16,375 Property, plant and equipment 6,154 6,222 Shareholders' equity 79,715 78,412 Intangible assets 1,034 1,038 Equity attributable to equity holders of the parent 73,863 72,683 Goodwill 4,370 4,307 Non-controlling interests 5,852 5,728
TOTAL ASSETS 1,487,257 1,446,269 TOTAL LIABILITIES 1,487,257 1,446,269
41 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Statement of changes in shareholders' equity
Equity attributable to equity In millions of euros holders of the parent
December 31, 2020 72,683
Distributions -
Capital increase (cooperative shares) 512
Impact of acquisitions and disposals on non-controlling interests (minority interests) (11)
Income 548
Changes in gains & losses directly recognized in equity 153
Other (23)
March 31, 2021 73,863
42 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Financial structure: changes in regulatory capital and fully-loaded ratios
Reconciliation of shareholders’ equity to total capital Regulatory capital(1) (in €bn) 78.2 78.9 March 31, 2021 Dec. 31, 2020 In billions of euros 9.3 9.2 Equity attribuable to equity holders of the parent 73.9 72.7 26.9 27.3 Tier-2 capital Cancelation of hybrid securities(2) in equity - - attribuable to equity holders of the parent CET1 CET1 69.0 69.7 cooperative shares Non-controlling interests(3) 4.5 4.4 42.1 42.4
Goodwill and intangibles (4.9) (4.8) Reserves(4) EL/Prov. Difference (0.2) (0.4) Dec. 31, 2020 March 31, 2021 Deduction of irrevocable payment commitments - - (1) Other regulatory adjustments (3.6) (2.9) Total capital ratios (as a %) Common Equity Tier-1 capital 69.7 69.0 18.1% 18.2% Additional Tier-1 capital - - 2.1 2.1 Tier-1 capital 69.7 69.0 Tier-2 capital 10.7 10.8 T2 Contribution 16.0 16.1 T2 regulatory adjustments (1.5) (1.6) CET1 ratio Total capital 78.9 78.2
Dec. 31, 2020 March 31, 2021
(1) After deduction, following the instructions of the supervisory authorities, of the part of the contributions to the Single Resolution Fund and Bank Deposit Guarantee Fund recognized in the form of irrevocable payment commitments (IPC) (2) BPCE deeply subordinated notes booked to equity attributable to equity holders of the parent (3) Non-controlling interests (prudential definition); account is only taken of the part from Natixis, excluding super-subordinated notes and after regulatory clipping (4) Reserves net of prudential restatements 43 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes 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 03/31/2021 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 % 16.1% requirement
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 Coussin : Coussin : requirement 488 bps 492 bps SREP total capital MDA MDA SREP total 8.00 % 1.75 % 2.50 % 1.00 % 0.01 % 13.26 % requirement trigger trigger capital 8.00 % 1.75 % 2.50 % 1.00 % 0.01 % 13.26 % threshold: threshold: requirement 11.11% 11.14% SREP Distance to SREP SREP Distance to SREP 12/31/2020 Actual level requirement requirement (bps) 03/31/2021 Actual level requirement requirement (bps)
CET 1 16.0 % 9.32 % 667 CET 1 16.1 % 9.32 % 674
Tier 1 16.0 % 10.82 % 517 Tier 1 16.1 % 10.82 % 524
Total Total 18.1 % 13.26 % 488 18.2 % 13.26 % 492 capital capital
Distance to MDA trigger threshold = lowest of Distance to MDA trigger threshold = lowest of 488 Dec. 31, 2020 March 31, 2021 492 the 3 distances to SREP the 3 distances to SREP
MDA trigger threshold 11.11 % MDA trigger threshold 11.14 %
Significant buffer over MDA trigger threshold: 492 bps (+ 4 bps since end 2020)
Capital adequacy, Total loss-absorbing capacity – see note on methodology
44 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Financial structure: prudential ratios and credit ratings
Long-term SENIOR PREFERRED credit ratings March 31, 2021(1) Dec. 31, 2020 Dec. 31, 2019 (May 6, 2021)
Total risk-weighed assets €434bn €431bn €422bn A+ negative outlook Common Equity Tier-1 capital €69.7bn €69.0bn €66.0bn
Tier-1 capital €69.7bn €69.0bn €66.0bn A1 stable outlook Total capital €78.9bn €78.2bn €79.3bn A+ Common Equity Tier-1 ratio 16.1% 16.0% 15.7% stable outlook
Tier-1 ratio 16.1% 16.0% 15.7% A+ Total capital adequacy ratio 18.2% 18.1% 18.8% negative outlook
(1) Estimate at March 31, 2021 with irrevocable payment commitments now weighted at 100% and more deducted from equity (since September 30, 2020) 45 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes TLAC / MREL ratio
TLAC(1) RATIO (as a % of risk-weighted assets) MREL(1) RATIO (as a % of risk-weighted assets)
30.7%
25.0% 6.8% 23.9% 5.1% 19.5% 5.1% Eligible Senior Preferred debt Senior Non-Preferred 2.7% Senior Non-Preferred 2.7% Tier 2 Tier 2 Additional Tier 1 Additional Tier 1 CET1 CET1 16.1% 16.1%
TLAC requirement March 31, 2021 Total MREL requirement March 31, 2021 March 31, 2021(2) March 31, 2021(3)
Capital adequacy, Total loss-absorbing capacity – see note on methodology (1) Estimate at March 31, 2021 (2) Based on FSB TLAC term sheet dated Nov. 9, 2015 (3) Based on ACPR’s notification of March 22, 2021 46 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Risk-Weighed Assets
BREAKDOWN PER BUSINESS LINE (in €bn) BREAKDOWN PER TYPE OF RISK(1) (in €bn)
431 434 431 434 13% 13% 9% 9% Other 3% 4% 16% 16% 3% 3% Corporate & Operational Risk Investment Banking 88% 87% Market Risk Asset & Wealth 68% 68% Credit Risk Management
Retail Banking & Insurance Dec. 31, 2020 March 31, 2021 Dec. 31, 2020 March 31, 2021
CHANGE OVER A 3-MONTH PERIOD (in €bn)
+1 +0 +2
431 434
Risk-Weighed Assets Retail Banking & Asset & Wealth Corporate & Investment Risk-Weighed Assets Dec. 31, 2020 Insurance Management Banking March 31, 2021
(1) The CVA is included under Credit risk. It accounted for less than 1% of RWA at March 31, 2021 and December 31, 2020 47 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Leverage ratio(1)
In billions of euros March 31, 2021 Dec. 31, 2020
Tier-1 capital 69.7 69.0
Balance sheet total 1,487.3 1,446.3
Prudential restatements (121.5) (119.5)
Prudential balance sheet total(1) 1,365.8 1,326.8
Adjustments related to exposure to derivates (3) (23.1) (32.5)
Adjustments related to security financing operations(4) 0.8 (5.1)
Off-balance sheet (financing and guarantee commitments) 86.2 85.1
Deduction of central bank exposures(6) (138.9) (130.5)
Regulatory adjustments(2) (5.6) (5.6)
Total leverage exposure(2) 1,285.2 1,238.2
Leverage ratio(3) 5.4(5)% 5.6%
(1) Estimate calculated using the rules of the Delegated Act published by the European Commission on October 10, 2014 (2) The main difference between the statutory balance sheet and the prudential balance sheet lies in the method used for consolidating insurance companies, consolidated using the equity method in the prudential scope of consolidation, irrespective of the statutory consolidation method (3) Inclusion of the effects of offsetting applicable to derivatives according to the rules of the Delegated Act (4) Inclusion of adjustments applicable to security financing operations according to the rules of the Delegated Act (5) The leverage ratio would amount to 5.8% after excluding the centralized outstandings of regulated savings from the calculation of the denominator of the ratio, subject to the agreement of the ECB and following the decision of July 13, 2018 of the General Court of the European Union (6) Application of the quick fix linked to the exemption of central bank outstandings (since September 30, 2020) 48 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Financial conglomerate
FINANCIAL CONGLOMERATE RATIO CRR/CRD IV(2) Restatements Financial viewpoint conglomerate viewpoint +3.8 Banking CR (1) (CRR/CRD IV) Regulatory + Total capital capital 82.7 82.7 82.8 Insurance CR(1) (Solvency 2) (in €bn) 78.9 78.9
RESTATEMENTS APPLIED -
1 2 3 +7.4 66.2 Shift from a Cancellation of the Inclusion of the Capital prudential to a solvency margin (3.1) capital requirements requirements statuory of insurance companies calculated under 61.9 61.9 (3) (in €bn) scope calculated Solvency 2 under CRR/CRD 1 2 3 CONSEQUENCES = ʘ Total capital restatement: +€3.8bn Capital surplus ≈ €16.6bn ʘ Net restatement of capital requirements: +€4.3bn
(1) CR = capital requirements, i.e. 14.26% of risk-weighted assets according to CRR/CRD IV (2) Estimate – Taking account of transitional measures; subject to the provisions of article 26.2 of regulation (EU) n° 575/2013 (3) The main difference between the two scopes lies in the method used to consolidate insurance companies, consolidated using the equity method in the prudential scope of consolidation, irrespective of the statutory consolidation method 49 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes 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% 307 188%
247 146 176 Cash placed with central banks 81 19 23 19 MLT LCR securities 75 56 51 112 106 113 Assets eligible for ST 91 105 91 central bank funding
March 31, Dec.31, March 31, March 31, Dec. 31, March 31, 2020 2020 2021 2020 2020 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]
50 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Retail Banking & Insurance: quarterly income statement
BANQUE CAISSE FINANCIAL SOLUTIONS OTHER RETAIL BANKING POPULAIRE D'EPARGNE INSURANCE PAYMENTS & EXPERTISE NETWORKS & INSURANCE NETWORK NETWORK
Q1-21 Q1-20pf % Q1-21 Q1-20pf % Q1-21 Q1-20pf % Q1-21 Q1-20pf % Q1-21 Q1-20pf % Q1-21 Q1-20pf % Q1-21 Q1-20pf % In millions of euros
Net banking income 1,669 1,572 6.2% 1,795 1,684 6.6% 295 288 2.4% 240 222 8.4% 117 113 3.9% 181 197 (8.1)% 4,298 4,076 5.5%
Operating expenses (1,078) (1,092) (1.2)% (1,158) (1,175) (1.5)% (157) (159) (0.7)% (138) (134) 3.6% (103) (93) 10.6% (125) (141) (11.6)% (2,760) (2,794) (1.2)%
Gross operating 591 480 23.1% 638 509 25.4% 138 130 6.2% 102 88 15.7% 14 19 (28.4)% 56 56 0.8% 1,538 1,281 20,0% income Cost of risk (165) (117) 41.8% (153) (121) 26.1% (31) (24) 25.2% 0 2 ns (38) (42) (9.0)% (387) (302) 28.0%
Income before tax 440 372 18.2% 485 388 25.0% 107 105 1.8% 104 77 35.1% 14 21 (34.8)% 18 14 31.5% 1,167 977 19.5%
Income tax (128) (115) 11.4% (145) (124) 17.7% (30) (32) (6.5)% (28) (26) 7.6% (4) (6) (39.4)% (4) (3) 48.9% (340) (306) 11.0% Non-controlling (1) (1) 9.6% (1) 0 ns (22) (15) 49.6% (3) (4) (33.0)% 25.4% (32) (24) interests (4) (3) 31.8%
Net income 310 255 21.4% 338 264 28.2% 73 5.4% 54 36 49.2% 7 10 (32.8)% 10 28.3% 796 646 23.1% - Group share 77 8
51 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Retail Banking & Insurance: quarterly series
RETAIL BANKING & INSURANCE
Q1-20 pf Q2-20 pf Q3-20 pf Q4-20 pf Q1-21 In millions of euros
Net banking income 4,076 4,010 4,098 4,276 4,298
Operating expenses (2,794) (2,577) (2,620) (2,816) (2,760)
Gross operating income 1,281 1,433 1,478 1,460 1,538
Cost of risk (302) (651) (343) (746) (387)
Income before tax 977 789 1,156 702 1,167
Net income – Group share 646 499 780 407 796
52 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Retail Banking & Insurance: Banque Populaire and Caisse d’Epargne networks quarterly series
BANQUE POPULAIRE NETWORK Q1-20pf Q2-20pf Q3-20pf Q4-20pf Q1-21 In millions of euros Net banking income 1,572 1,483 1,588 1,672 1,669 Operating expenses (1,092) (1,016) (1,053) (1,082) (1,078) Gross operating income 480 468 535 590 591 Cost of risk (117) (289) (114) (309) (165) Income before tax 372 187 434 280 440
Net income – Group share 255 120 313 182 310
CAISSE D’EPARGNE NETWORK Q1-20pf Q2-20pf Q3-20pf Q4-20pf Q1-21 In millions of euros Net banking income 1,684 1,761 1,705 1,767 1,795 Operating expenses (1,175) (1,086) (1,077) (1,209) (1,158) Gross operating income 509 675 627 558 638 Cost of risk (121) (276) (162) (354) (153) Income before tax 388 398 476 202 485
Net income – Group share 264 263 326 98 338
53 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Retail Banking & Insurance
DEPOSITS & SAVINGS (in €bn) LOAN OUTSTANDINGS (in €bn)
836.2 Change YoY Change YoY 760.1 +10.0% +11.3% 251.4 620.9 204.7 558.1
+22.8% Sight deposits 207.2 344.0 189.4 +9.4% Passbook savings accounts 317.7 +2.0% Regulated home savings plans 80.6 82.3 (4.0)% Term accounts +8.3% Residential mortgages 53.3 34.1 51.2 (41.6)% BPCE bonds placed in the retail network +2.6% Consumer loans 4.4 2.6 33.3 25.5 57.6 17.2 +48.1% Mutual funds 30.6 +88.3% Short-term credit facilities
+3.7% Life insurance +5.6% Equipment loans 185.0 191.8 155.0 163.7 (20.6)% Other Other 27.9 22.3 21.5 21.5 March 2020 March 2021 March 2020 March 2021
54 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Retail Banking & Insurance: Banque Populaire network
DEPOSITS & SAVINGS (in €bn) LOAN OUTSTANDINGS (in €bn)
Change YoY Change YoY +12.8% +15.7% 334.9
297.0 264.0 128.4 103.1 228.2 +24.6% Sight deposits
Passbook savings accounts 144.2 +14.1% 132.2 65.2 Regulated home savings plans 57.1 +2.7%
(3,6)% Term accounts 11.7 Residential mortgages 21.5 22.1 +9.1% 32.0 28.4 Mutual funds 11.2 Consumer loans 29.5 +73,3% 14.6 +4,6% 10.8 18.8 +4.3% Life insurance +119% Short-term credit facilities 69.8 76.1 53.3 55.6 Equipment loans (23.8)% Other +9,1%
21.6 16.5 March 2020 March 2021 March 2020 March 2021
55 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Retail Banking & Insurance: Caisse d’Epargne network
DEPOSITS & SAVINGS (in €bn) LOAN OUTSTANDINGS (in €bn)
Change YoY Change YoY 483.9 +8.4% +8.7% 446.5
114.2 93.4 320.3 294.8 +22.3% Sight deposits 140.9 131.2 +7.3% Passbook savings accounts Regulated home savings plans 195 +1.8% 181.4 Term accounts +7.5% Residential mortgages 58.9 60.0 +14.5% BPCE bonds placed in the retail network 21.3 24.4 (41.6)% +3.4% Consumer loans 4.4 2.6 5.1 18.2 4.8 +7.7% Mutual funds 17.6 +59.5% Short-term credit facilities 14.1 22.5 Life insurance 129.2 133.7 3.5% +4.5% Equipment loans (7.6)% Other 78.5 81.0 3.3 3.1 (11.9)% Other 4.1 3.6 March 2020 March 2021 March 2020 March 2021
56 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Retail Banking & Insurance: FSE quarterly series
FINANCIAL SOLUTIONS & EXPERTISE
Q1-20pf Q2-20pf Q3-20pf Q4-20pf Q1-21 In millions of euros
Net banking income 288 262 284 300 295
Operating expenses (159) (141) (150) (154) (157)
Gross operating income 130 120 134 146 138
Cost of risk (24) (26) (35) (32) (31)
Income before tax 105 95 99 114 107
Net income – Group share 73 67 69 81 77
57 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Retail Banking & Insurance: Insurance quarterly series
INSURANCE
Q1-20pf Q2-20pf Q3-20pf Q4-20pf Q1-21 In millions of euros
Net banking income 222 229 221 233 240
Operating expenses (134) (116) (117) (123) (138)
Gross operating income 88 113 104 110 102
Income before tax 77 111 103 106 104
Net income – Group share 36 55 51 52 54
58 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Retail Banking & Insurance: Payments quarterly series
PAYMENTS
Q1-20pf Q2-20pf Q3-20pf Q4-20pf Q1-21 In millions of euros
Net banking income 113 85 117 115 117
Operating expenses (93) (94) (97) (102) (103)
Gross operating income 19 (9) 20 13 14
Income before tax 21 (9) 20 14 14
Net income – Group share 10 (4) 10 7 7
59 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Retail Banking & Insurance: Other networks quarterly series
OTHER NETWORKS
Q1-20pf Q2-20pf Q3-20pf Q4-20pf Q1-21 In millions of euros
Net banking income 197 189 184 189 181
Operating expenses (141) (123) (127) (146) (125)
Gross operating income 56 67 57 44 56
Cost of risk (42) (60) (32) (52) (38)
Income before tax 14 7 24 (14) 18
Net income – Group share 8 (2) 11 (11) 10
60 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Asset & Wealth Management: quarterly series
ASSET & WEALTH MANAGEMENT
Q1-20pf Q2-20pf Q3-20pf Q4-20pf Q1-21 In millions of euros
Net banking income 680 684 720 1,012 755
Operating expenses (559) (529) (565) (685) (587)
Gross operating income 121 155 156 327 168
Cost of risk 1 (11) (10) (7) (2)
Income before tax 121 147 147 321 167
Net income – 53 71 67 152 80 excl. H20 net contribution
H2O – Net contribution 21 2 (10) (27) (4)
Net income – Group share 74 73 57 126 76
61 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Corporate & Investment Banking: quarterly series
CORPORATE & INVESTMENT BANKING
Q1-20pf Q2-20pf Q3-20pf Q4-20pf Q1-21 En millions d’euros
Net banking income 680 511 695 885 925
Operating expenses (559) (478) (512) (556) (583)
Gross operating income 121 33 183 330 342
Cost of risk (194) (275) (199) (152) (81)
Income before tax (70) (240) (13) 181 264
Net income – Group share (38) (124) (8) 93 139
62 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Corporate center: restated quarterly series
CORPORATE CENTER
Q1-20pf Q2-20pf Q3-20pf Q4-20pf Q1-21 In millions of euros
Net banking income 13 (42) (26) 139 121
Operating expenses (612) (244) (197) (286) (711)
Gross operating income (598) (286) (223) (148) (590)
Cost of risk (8) (44) (38) (20) (20)
Share in income of associates 51 43 48 71 51
Net gains or losses on other assets 3 (137) 16 9 4
Income before tax – (553) (425) (197) (88) (555) excl. Coface net contribution
Coface – Net contribution (83) (19) (29) (5) 5
Net income – Group share (501) (317) (154) (4) (463)
63 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Performing & non-performing loans and impairment
In billions of euros March 31, 2021 Dec.31, 2020
Gross outstanding loans to customers and credit institutions 864.2 850.4
O/w S1/S2 outstandings 842.1 828.9
O/w S3 outstandings 22.1 21.5
Non-performing loans/gross outstanding loans 2.6% 2.5%
S1/S2 impairments recognized 4.3 4.2
S3 impairments recognized 9.5 9.4
Impairments recognized/non-performing loans 43.2% 43.7%
Coverage ratio 63.6% 66.2% (including guarantees related to impaired outstandings)
64 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Cost of risk by business lines
COST OF RISK(1) (in bps) 49 48
16 17 20 18 25 15 33 6 30 22 BP network 5 12 3 45 37 21 5 19 16 15 7 41 11 22 12 CE network 5 14 8
45 49 13 21 20 23 25 10 RB&I 17 26 36 20 5 13 5 163 123 121 95 124 53 112 112 65 47 CIB 11 39 9 30 6
55 49
29 29 32 18 26 19 24 25 31 21 Groupe BPCE 5 12 5 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21
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 65 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes 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 March 31, 2021(1)
% % Gross % of total 4% of State- % of Corporate customers exposure Group gross 27% guaranteed of NPL Investment o/w 69% in France (€bn) exposure 6% loans Grade Wholesale and retail trade 4% 17.2 1.2% 27.5% 5.5% 33.2% (non food) €1,411bn 8% 19% Tourism – Hotel – Catering 16.7 1.2% 21.3% 8.4% 24.7% Automobile 10.5 0.7% 24.5% 3.1% 41.3% 1% Consumer goods Residential 6.5 0.5% 7.5% 2.5% 78.4% 1% (excl. cosmetics and personal care) mortgages 24% 29% Real estate Professionals (excl. 6.8 0.5% 0.3% 4.4% 51.7% residential exposure)
Individual customers Small businesses Corporate customers Natixis scope Financial institutions Oil & Gas(3): €10.2bn 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: €2.4bn net EAD (€0.7bn US and €1.7bn EMEA/Other) Central administrations Central banks and other sovereign exposures Aviation: €3.8bn net EAD Securitization Well diversified portfolio across ≈30 countries (no country accounting for >25% of net EAD), Equities approx. 80% exposures secured and majority investment grade
(1) Estimate (2) Management data at end of March 2021 (3) Energy & Natural Resources + Real Assets perimeters 66 RESULTS FOR THE 1ST QUARTER OF 2021 Annexes Breakdown of gross exposure at March 31, 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 67 RESULTS FOR THE 1ST QUARTER OF 2021 groupebpce.com