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Groupe BPCE : Results for the 2nd quarter and the 1st half of 2014

Groupe BPCE: strong 1st half of 2014 with net income attributable to equity holders of the parent of €1.7 billion (1), up 10.4% compared with the same period in 2013

Robust commercial performance by the core business lines

  • Banque Populaire and Caisse d’Epargne networks
    • 9.6% year-on-year growth in on-balance sheet savings[2]  and good performance in life insurance
    • 5.6% year-on-year growth in loan outstandings
  • Core business lines of Natixis
    • Wholesale Banking: 8.3% rise in H1-2014 revenues
    • Investment Solutions: record-breaking net inflows of €17 billion in asset management and 15.9% revenue increase in H1-2014
    • Specialized Financial Services: 1.7% growth in revenues in the first six months of 2014, in line with the performance of the Commercial Banking & Insurance division

Robust, recurring results

  • Core business revenues of €5.5 billion in Q2-2014, up 2.9% vs. Q2-2013 and €11 billion in H1-2014, up 3.2% vs. H1-2013
  • Moderate cost of risk: 33 basis points in Q2-2014, down 3 basis points vs. Q2-2013
  • Net income attributable to equity holders of the parent[1] of €828 million in Q2-2014, up 5.0% vs. Q2-2013, and of €1.7 billion in H1-2014, up 10.4% vs. H1-2013

Continued strengthening of capital adequacy in Q2-2014

  • Common Equity Tier-1 ratio[3] : 11.1%, i.e. +20 basis points compared with 31/03/2014
  • Total capital adequacy ratio[3];[4] : 14.5%, i.e. +70 basis points compared with 31/03/2014
  • Leverage ratio[5]  > 4%

Enhanced liquidity situation

  • 2014 MLT funding plan already complete
  • Short-term liquidity LCR ratio > 100%[6]  as at June 30, 2014

Initial results of the implementation of the new strategic plan (2014 – 2017)

2014-2017 strategic plan: “Growing differently”

  • Revenue and cost synergies
    • Rollot of measures as at June 30, 2014 overall ahead of the linearized 2017 target: €127 million in addition revenues between the Banque Populaire banks, the Caisses d’Epargne and Natixis (target: €870 million); €110 million in cost synergies (target: €900 million)
  • Insurance
    • Agreement between CNP Assurance and Groupe BPCE on the implementation of a partnership renewed for a period of 7 years, as of January 1, 2016
  • Savings
    • Annual growth in private banking assets under management: +6.1%, in line with the goals expressed in the strategic plan
  • Digital
    • Pursuit of the digital enterprise program. Launch of Dilizy and Izly to facilitate local retail payments

Other highlights of the quarter

  • Closure of GAPC
  • Disposal of non-strategic assets
    • Listing of almost 59% of the capital of Coface at end-June 2014, with no impact on income
  • Merger between two Banque Populaire banks
    • Plan to merge the Banque Populaire Alsace and the Banque Populaire Lorraine Champagne approved by their respective governing bodies; completion planned for November 2014


The Q2-13 and H1-13 results are presented pro forma to account for the transfer of BPCE Assurances to Natixis and the Q1-13 comparison base is presented pro forma of the buyback (and subsequent cancellation) by the Banque Populaire banks and Caisses d’Epargne of the Cooperative Investment Certificates (CICs) held by Natixis.

[1] Excluding revaluation of BPCE’s own debt for Group results
[2] Excluding centralized savings products
[3] Estimate at June 30, 2014 – CRR/CRD 4, without transitional measures and after restating for deferred tax assets
[4] Including Tier-2 issues in July
[5] Estimate on June 30, 2014 based on Groupe BPCE’s interpretation of the draft regulation that is expected to incorporate in CRR most of the recommendations formulated by the Basel Committee in January 2014.
[6] According to Groupe BPCE’s interpretation of the most recently published Basel 3 standards