News and Press releases

12/02/2019

Full-Year 2018 Results of Groupe BPCE

2018 reported net banking income up 1.2% to €24bn
2018 reported net income stable at €3bn (underlying net income up 3.7%(1) to €3.5bn)
Reported net income in Q4-18 up 18% to €588m

Significant strategic moves in 2018 creating value for our core businesses
Partnership project(2) with Auchan Holding through the acquisition of a 50.1% stake in Oney Bank

SOLID PERFORMANCE ACHIEVED BY GROUPE BPCE THANKS TO OUR DIVERSIFIED UNIVERSAL BANKING MODEL

Underlying revenues up 0.7%(1,3) to €23.9bn

  • Retail Banking & Insurance: revenues on a positive trend; sustained activity in the other growth drivers, i.e.  Insurance, SFS businesses and Payments
  • Asset & Wealth Management:  strong revenue growth in 2018
  • Corporate & Investment Banking: revenue growth across Global finance and M&A and a difficult business environment for market activities

Underlying net income up 3.7%1 to €3.5bn, including non-recurring items in Q4-18

CONTINUOUS IMPROVEMENT IN OUR FINANCIAL STRENGTH, TARGETS ACHIEVED FOR OUR CET1 AND TLAC RATIOS

  • CET1(1) at 15.5% at December 31, 2018, including 43bps of organic capital creation: the minimum CET1 target fixed in the 2018-2020 strategic plan has already been achieved
  • TLAC1  at 22.5%, the target fixed for early 2019 was already exceeded in June 2018
  • Groupe BPCE’s LT senior preferred ratings upgraded to A1/A+/A+ by 3 ratings agencies in 2018

EXECUTION OF THE STRATEGIC PROJECTS WELL ON TRACK

  • Integration(4) of Crédit Foncier’s activities and expertise with a major milestone of the implementation of the project on April 1st, 2019
  • Integration of SFS businesses within BPCE SA in line with our initial schedule
  • Project to dispose of banking interests in Africa: closing of the Banque des Mascareignes disposal in October 2018 and finalization of the other transactions in progress
  • Speeding up the transformation of banking activities through the activation of digital services for our customers:
    • Finalization of the deployment of 100% digital customer pathways for consumer, equipment and residential mortgages
    • 4.3 million customers active on mobile applications, +600,000 in 2018
  • CIB: continued development of multi-boutique business in M&A model with the acquisitions of Fenchurch Advisory, Vermillion Partners and Clipperton
  • AWM: enhancement of the multi-affiliates model with the acquisition of MV Credit, an investment house specializing in alternative strategies (private debt)

A PARTNERSHIP PROJECT(2) CREATING VALUE IN RETAIL BANKING IN EUROPE

Partnership project2 with Auchan Holding, through the acquisition of a 50.1% stake in Oney Bank by BPCE, European player active in consumer loans, payment solutions and digital products

Oney Bank, with 7.6 million customers and present in 11 countries (mainly France, Spain and Portugal), has developed a unique business model based on a network of 400 partnerships including major retailers and major e-commerce companies.

This partnership will allow Groupe BPCE to:

  • Start a carefully managed expansion in Europe building on the presence of an established, recognized and innovative player; Oney Bank will be positioned as the Group’s international retail focused digital bank,
  • Create value from the Group's expertise and capabilities, particularly in payments,
  • Build on its digital transformation with Oney Bank’s profitable activities.

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(1) See notes on methodology
(2) Project is subject to the notification/consultation process of the trade union representatives of the employees of the Group entities concerned by this initiative and will also be subject to the usual conditions precedent for this type of transaction
(3) At constant exchange rates
(4) On April 1st, 2019, the transfer of Crédit Foncier employees due to join other Group companies will become effective