Mediterranean Bank Network News


Results of Groupe BPCE for the 3rd quarter and 1st nine months of 2016

BPCE, France

Tuesday, 08 November 2016


Results of Groupe BPCE for the 3rd quarter and 1st nine months of 2016

In the first 9 months of 2016, net income (1) attributable to equity holders of the parent stands at €2.8bn (2), up 8.6%, with published net income attributable to equity holders of the parent of €3.4bn thanks to capital gains realized on the Visa Europe transaction

Commercial activity remains buoyant

Strong momentum in the Banque Populaire and Caisse d’Epargne retail banking networks

  • Increase in loan outstandings by 5.0% and in deposits & savings of 2.2% as of Sept. 30, 2016
  • Production of new MLT loans to corporate customers rose by 18.1% compared with 9M-15

Development of Insurance businesses (3) 

  • Strong momentum in life insurance with gross inflows up by 16.9% compared with 9M-15
  • Portfolio of non-life insurance contracts up by 9.7% year-on-year

Significant contribution from the Corporate & Investment Banking division of Natixis

  • High level of business activity, with a very good performance achieved by the Fixed Income and Mergers & Acquisitions activities

Robust results thanks to our “universal bank” model

Decline in retail banking revenues offset by the good performance of the core business lines (4) of Natixis

  • Net banking income (5) of the Group’s core business lines declined by 1.5% compared with 9M-15
  • Low interest rates depressed the net interest income generated by retail banking activities
  • 2.9% increase in the net banking income (6) of the core business lines of Natixis driven by CIB (+7.8%) vs. 9M-15

The Group’s cost of risk kept at a low level: 21 basis points in 9M-16

Net income attributable (2) to equity holders of the parent of the core business lines equal to €3.2bn, up by 4.4% vs. 9M-15

 

Total capital ratio target achieved

  • Fully-loaded total capital ratio of 18.2% (7), ahead of the early 2019 target of 18% (7)
  • CET1 ratio of 14.0% (8) as of Sept. 30, 2016
  • Generation of CET1 via retained earnings: +60bps since the beginning of 2016

 

Preparation of Groupe BPCE’S new strategic plan for 2018 – 2020

Transformation and Business Efficiency Project of Natixis (9) : €250m in cost savings by the end of 2019

Specialized Financial Services: creation of a business line bringing together within Natixis all payment platforms on behalf of Groupe BPCE

Groupe BPCE: presentation in early 2017 of the digital action plan, its new local banking relationship models, and the Group’s Transformation and Operational Excellence project.

 

(1) 9M-15 and Q3-15 are presented pro forma (cf. the note on methodology at the end of this press release); unless specified to the contrary, all changes use the same reference base of September 30, 2015

(2) Excluding non-economic and exceptional items and after restating to account for the impact of IFRIC 21

(3) Entities included: CNP Assurances, Natixis Assurances, Prépar vie (gross inflows from the Banque Populaire and Caisse d’Epargne retail banking networks)

(4) Core business lines: Commercial Banking & Insurance, Investment Solutions, Corporate & Investment Banking, and Specialized Financial Services

(5) Excluding non-economic and exceptional items

(6) Excluding exceptional items

(7) CRR/CRD IV without transitional measures

(8) Estimate at Sept. 30, 2016 - CRR/CRD IV without transitional measures (except for deferred tax assets on tax loss carryforwards and pro forma of the additional phase-in of the stock of DTA in accordance with regulation 2016/445); additional Tier-1 capital takes account of subordinated debt issues that have become ineligible and capped at the phase-out rate in force

(9) Plans will be subject to the consultation process with employee representatives

http://www.groupebpce.fr/en/content/download/14311/259543/version/3/file/Groupe%20BPCE%20Q3-16%20%209M-16%20results%20FV.pdf


Member banks
  • The Bank of Valletta Group is a leading financial services provider in Malta, providing retail banking, investment banking, private banking, fund management, bancassurance, stockbroking and trustee services.

  • Spain’s fourth largest private banking group, covering all areas of the financial business sector under a common denominator: professional performance and quality.

  • One of the leading banks in the Kingdom of Jordan. A bank that has distinctly adapted continuous development and improvement schemes in all of its activities.

  • BPCE Banques Populaires network has 8,500,000 clients and customers (including 3,900,000 members), more than 3,338 branches, and is part of the second largest French banking group – the BPCE Group.

  • With the largest network of banking, the Banque Populaire Group is the leading banking network in Morocco .By the end December 2012, its network was 1145 branches and over 1323 ATMs.