Groupe bpce results q4 13

February 19, 2014

Results for full-year 2013

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 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 December 31, 2013 has been drawn up in compliance
with IFRS guidelines, as adopted in the European Union.
The consolidated financial statements of Groupe BPCE for the fiscal period ended December 31, 2013 approved by the Management Board at a
meeting convened on February 13, 2014, were verified and reviewed by the Supervisory Board at a meeting convened on February 19, 2014.
This presentation includes financial data related to publicly-listed companies which, in accordance with Article L. 451-1-2 of the French
Monetary and Financial Code (Code Monétaire et Financier), publish information on a quarterly basis about their total revenues per business
line. Accordingly, the quarterly financial data regarding these companies is derived from an estimate carried out by Groupe BPCE. The
publication of Groupe BPCE’s key financial figures based on these estimates should not be construed to engage the liability of the
abovementioned companies.
The audit procedures relating to the consolidated financial statements for the year ended December 31, 2013 have been substantially
completed. The reports of the statutory auditors regarding the certification of these consolidated financial statements will be published
following the verification of the Management Report and the finalization of the procedures required for the registration of the reference
document.
Notes on methodology
The operation whereby the Banque Populaire banks and Caisses d’Epargne bought back and subsequently cancelled the cooperative
investment certificates (CICs) held by Natixis was completed on August 6, 2013. The financial results are presented pro forma to account for
this CIC buy-back operation, which involves the reimbursement of related funding and mechanisms, on the following basis:
-Organization of the CIC buy-back operation as at January 1, 2012,
-Reimbursement of P3CI (loan covering the CICs) and completion of other related operations as at January 1, 2012,
-Replacement of liquidity by Natixis and the exceptional distribution to Natixis shareholders of a dividend of approximately €2 billion as at
January 1, 2012.
As of Q2-13, regulatory capital is allocated to Groupe BPCE business lines on the basis of 9% of their Basel 3 average risk-weighted assets.
The capital allocation specific to the Insurance businesses is replaced by the Basel 3 treatment for investments in insurance companies, as
transposed in CRR/CRD IV (the consolidated value of listed and unlisted companies being risk weighted at 290% and 370% respectively).
The segment information of Groupe BPCE has been restated accordingly for previous reporting periods.

February 19, 2014


2

Robust Groupe BPCE performance in 2013 with continuing
moderate risk profile and major gains in capital adequacy


Very strong
commercial
dynamism of the
core business lines

Revenues from the core business lines: €21.6bn1, +4.6% vs. 2012



Commercial Banking and Insurance: revenues of €15.2bn, +3.9%2 vs. 2012, a
remarkable achievement in a sluggish economic environment

Growth in on-balance sheet deposits and savings +9.9%3 and loan outstandings +6.1%4

o



Core business lines of Natixis: revenues of €6.4bn, +5.0% vs. 2012
Extremely strong dynamism of key franchises

o





Cost/income ratio of the core business lines: 65.9%, -2.3 pts vs. 2012



Robust
2013 results

Strong growth net income1,5 attributable to equity holders of the parent in 2013:
€2.9bn, +26.2% vs. 2012

Cost of risk kept to a moderate level in 2013: annual average of 35 bp
(-2 bp vs. 2012)




Overall capital adequacy ratio under Basel 36,7: 13.4%, +180 bp in 2013



Leverage ratio under Basel 3 in excess of 3.6%6



Group’s loan-to-deposit ratio8: -4 pts in 2013 to 124%



Continuous, regular
strengthening of
the balance sheet

Common Equity Tier-1 ratio under Basel 36: 10.4%, +150 bp in 2013

MLT funding helping to achieve a 100% LCR in early 2015
o

€32.2bn9 raised in the 2013 MLT funding plan (153%) for the Group as a whole; €7.1bn
raised as of Feb. 5, 2014 in the BPCE MLT funding pool (28% of the 2014 funding plan)

Results pro forma of the buyback and subsequent cancellation by the Banque Populaire banks and the Caisses d’Epargne of the Cooperative Investment Certificates (CICs) held by Natixis 2 Excluding changes in provisions for
home purchase savings schemes 3 Banque Populaire and Caisse d’Epargne networks, excluding centralized savings products 4 Banque Populaire and Caisse d’Epargne networks 5 Excl. the revaluation of own debt 6 Estimate at
Dec. 31, 2013 – CRR/CRD IV, as applied by Groupe BPCE; without transitional measures and after restatement to account for deferred tax assets 7 Pro forma to account for the $1.5bn issue at the beginning of January 2014
8 Excluding SCF (Compagnie de Financement Foncier, the Group’s société de crédit foncier – a French legal covered bonds issuer) 9 Including €5.4bn raised in excess of the 2012 plan and allocated to the 2013 plan
1

February 19, 2014


3

Contents

1.

Results of Groupe BPCE

2. Capital adequacy and liquidity
3. Results of the business lines
4.

Core business lines: gaining momentum with
the new strategic plan

5.

Conclusion

February 19, 2014


4

1. Groupe BPCE full-year 2013 results

Net income attributable to equity holders of the parent1:
+26.2%, to €2.9bn
2013 /

Pro forma results
In millions of euros

2013

2012
% change

Core
business

2013 /

lines2
2013

% change

2012

Net banking income 1

23,080

3.3%

21,629

4.6%

Operating expenses

-16,135

1.3%

-14,254

1.1%

6,944

8.2%

7,375

12.2%

69.9%

Gross operating income 1
Cost / income ratio

-1.4 pt

65.9%

-2.3 pts

Cost of risk

-2,042

Income before tax 1

5,143

23.9%

2,914

26.2%

Net income attributable to equity holders of the parent excluding
the revaluation of own debt
Impact of the revaluation of own debt on net income

-7.2%

-1,953

9.3%

5,666

13.3%

-

-

-123

Net income attributable to equity holders of the parent

2,791

32.1%

3,313

12.9%

ROE

5.7%

1.2 pt

9%

1 pt

Focus on the core business lines




Strong revenue growth: +4.6%
Operating expenses under tight control: +1.1%
Gross operating income1 up 12.2%; 2.3-point reduction in the cost/income ratio

Results pro forma of the buyback and subsequent cancellation by the Banque Populaire banks and the Caisses d’Epargne of the Cooperative Investment Certificates (CICs) held by Natixis
1 Excluding the revaluation of own debt for Group results 2 Commercial Banking & Insurance, Wholesale Banking, Investment Solutions and Specialized Financial Services

February 19, 2014


5

1. Groupe BPCE Q4-13 results

Fine performance achieved by the core business lines: net income
attributable to equity holders of the parent +10.9%

Pro forma results

Q4-13 /


Q4-12

Q4-13

% change

Core
business

Q4-13 /

lines2
Q4-13

% change

Q4-12

Net banking income 1

5,968

5.4%

5,541

4.8%

Operating expenses

-4,256

2.4%

-3,649

-1.1%

1,712

Cost of risk

13.7%

1,892

18.4%

71.3%

Gross operating income 1
Cost / income ratio

-2.1 pts

65.8%

-3.9 pts

-565

Income before tax 1

-12.3%

1,187

Net income attributable to equity holders of the parent excluding
the revaluation of own debt
Impact of the revaluation of own debt on net income
Net income attributable to equity holders of the parent

85.5%

596

x 2.4

-66

-546

16.2%

1,419

19.3%

-

-

x 3.1

775

10.9%

4.2%

ROE

530

3.2 pts

9%

1 pt

Focus on the core business lines




Strong revenue growth: +4.8%
Decline in operating expenses: -1.1%
Positive scissors effect on gross operating income, up by 18.4%; 3.9-point reduction in the
cost/income ratio

Results pro forma of the buyback and subsequent cancellation by the Banque Populaire banks and the Caisses d’Epargne of the Cooperative Investment Certificates (CICs) held by Natixis
1 Excluding the revaluation of own debt for Group results 2 Commercial Banking & Insurance, Wholesale Banking, Investment Solutions and Specialized Financial Services

February 19, 2014


6

1. Results of Groupe BPCE
Revenue and cost synergies ahead of the targets set in the
2010-2013 strategic plan
Contributions to revenue synergies (as a % of
additional net banking income generated)

Revenue synergies
Cumulative target
of €810m

End-2009

>

>

€891m realized at
end-December 2013

Specialized Financial Services: very fine
performance achieved by Consumer Finance in the
Banque Populaire banks and by the Factoring
business in the Caisses d’Epargne
Investment Solutions: strong growth in the
contribution made by insurance activities since
end-2012 and growth in the contribution made
by Private Banking

>

52%

Consumer finance
Insurance

15%
10%

Payments
Other

Contributions to cost synergies
(as a % of the synergies generated)

Cost synergies
End-2009

23%

Cumulative target
of €1bn

€1,035m realized at
end-December 2013

>

Rationalization of purchasing with, notably, the
signature of group-wide contracts with IT service
providers
Pooling of IT infrastructure

>

Optimization of organizational processes

>

32%

Processes (incl. Purchasing)

Implementation of local synergies between the
Banque Populaire banks and Caisses d’Epargne
February 19, 2014


Information Systems

41%
27%

Organization

7


Moderate risk profile: average annual cost of risk stands at 35 bp
(-2 bp vs. 2012)



Commercial Banking and Insurance
>
>



Wholesale Banking, Investment Solutions,
SFS
>
>



Average annual cost of risk: 35 bp
(+2 bp vs. 2012) remaining at a moderate level

31

27

32

31

29

36

27

37

Wholesale Banking, Investment Solutions, SFS
43

53

56

56

34

33

37

33

36

49

55

53

23

Core business lines
33

26

35

31

39

Groupe BPCE
>
>

>

1

Average annual cost of risk: 53 bp
Cost of risk stabilized in the core business lines of
Natixis

Core business lines
>



Average annual cost of risk remains stable: 32 bp
(+1 bp vs. 2012)
Sharp increase for Real estate Financing
in Q4-2013: provisions booked for specific cases and
a collective provision set aside for a portfolio of
international assets managed on a run-off basis

Cost of risk in pb1

Average annual cost of risk: 35 bp (-2 bp vs. 2012)
Non-performing loans to total loans ratio remains
moderate (3.9% at Dec. 31, 2013, -0.1 pt.
vs. Sept. 30, 2013)
Impaired outstandings coverage ratio at a high
level: 78.2% at Dec. 31, 2013 (+2.3 pts
vs. Sept. 30, 2013)

Groupe BPCE2

2011

Cost of risk expressed in annualized bp on gross customer loan outstandings at the beginning of the period

February 19, 2014


37

31

2

35

2012

2013

44

Q4-12

Q1-13

Q2-13

31

Q3-13

38

Q4-13

Excluding Greek government bonds impairment

8


GAPC: €5.4bn in assets divested in 2013 with no impact on net income

GAPC: contribution to the Group’s attributable
net income (in €m)


Faster pace of asset disposals in 2013:
€0.7bn in Q4-13, representing €5.4bn in
2013 vs. €3.6bn in 2012
34



During the year, disposals made at a

discount of less than 1%; no significant
impact of GAPC on net income attributable
to equity holders of the parent

1

1

Complete winding-up of GAPC by mid-2014
confirmed

-9

-33

Risk-weighted assets under Basel 3 stand
at €9.1bn1 at December 31, 2013



-7

-16
-31



19

17

-63

Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13

2012 2013

Estimate under Basel 3 – CRR/CRD IV, as applied by Groupe BPCE

February 19, 2014


9

Contents

1.


4.


5.

Conclusion

February 19, 2014


10


Sharp increase in capital adequacy in 2013: Common Equity Tier-1
ratio under Basel 31 at 10.4% as of end-December 2013
+ 60 bp

+ 40 bp
+ 50 bp
10.4%
8.9%
Common Equity Tier-1 ratio
under Basel 3 2
at Dec. 12, 2012



Retained earnings

Issue of cooperative shares

Change in activity
and others

Common Equity
Tier-1 ratio under Basel 3
at Dec. 31, 2013

Common Equity Tier-1 ratio under Basel 31: +150 bp in 2013
>
>

Common Equity Tier-1 capital1: €42.5bn
Risk-weighted assets under Basel 31: €409.5bn



Target of obtaining a Common Equity Tier-1 ratio under Basel 3 > 10% in 2014 has already
been achieved



Overall capital adequacy ratio1: 13.4%3 vs. 11.6% at December 31, 2012, +180 bp in 2013
>



Target: > 15% in 2017 at the latest4

Leverage ratio under Basel 35 > 3.6% at December 31, 2013

Estimate at Dec. 31, 2013 – CRR/CRD IV, as applied by Groupe BPCE ; without transitional measures and after restatement to account for deferred tax assets 2 Ratio pro forma to account for
the CIC buy-back operation 3 Pro forma to account for the $1.5bn issue at the beginning of January 2014 4 Depending on bail-in regulations 5 Without transitional measures and after restatement
to account for deferred tax assets, calculated using the CRR/CRD IV method
1

February 19, 2014


11


Enhanced customer loan-to-deposit ratio
Group customer loan-to-deposit ratio1



Change in
method2

ratio1:

Group customer loan-to-deposit
124% at Dec. 31, 2013, -4 pts vs. Dec. 31,
2012
>
>

Strong growth in on-balance sheet deposits and
savings in the retail networks: +€28bn3 in 2013
Faster pace of non-customer asset disposals in 2013:
disposal of assets for more than €10bn (GAPC: €5.4bn

138%

147%

132%
124%
128%
Dec. 2010

Dec. 2011

Dec. 2012

Dec. 2013

and CFF: €4.9bn)

Liquidity reserves and short-term funding
164%



Liquidity reserves: €160bn at Dec. 31, 2013
>

>

€109bn in available assets eligible for central bank
refinancing + €51bn in liquid assets placed with
central banks
Reserves equivalent to 164% of short-term funding

132%

117

43

Mar. 31, 13

February 19, 2014


2

Short-term refunding
outstandings (in €bn)

116

97

90

Excluding SCF (Compagnie de Financement Foncier, the Group’s société de crédit foncier – a French legal covered bonds issuer)
Excluding centralized savings products

160

111

106

103

Dec. 31, 12

3

156

Liquidity reserve/shortterm refunding
(as a %)

140

136

46

1

141%

160

132%

137%

57

97

109

103

40

51

Available assets eligible
for central bank
refinancing (in €bn)

Liquid assets placed with
central banks
(in €bn)

June 30, 13 Sept. 30, 13 Dec. 31, 13

Change in method related to modifications in the definition of customer classifications

12


2014 issuance program placing greater emphasis on diversification,
helping to reach the target of 100% LCR in early 2015



Favorable market conditions in 2013:
€32.2bn1 raised in MLT funding (153% of the
program)
>
>
>
>



>


€28.0bn in BPCE’s MLT funding pool
€4.2bn in the CFF MLT funding pool
Average maturity at issue: 5.3 years
Average rate: mid-swap +48 bp

Significantly enhanced diversification of the
investor base in 20132
>

MLT funding plan completed at Dec. 31, 2013

30% of issues denominated in currencies other than
the EUR vs. 11% in 2012: notably, in USD (60%)
and JPY (27%)
50% in private placements vs. 44% in 2012

73%

Covered bond issues in the
institutional market

Unsecured bond issues in the
26%

Senior unsecured bond issues placed
via the retail banking networks in
France (chiefly BP and CE)

1%

Wholesale funding structure: 2014 targets

2014 MLT funding plan for €30bn
>
>

€25bn in BPCE’s MLT funding pool
€5bn in the CFF MLT funding pool
70%



€7.1bn raised in the BPCE pool as at
February 5, 2014, equal to 28% of the
full-year 2014 plan
>
>

Average maturity at issue: 5.7 years
Average rate: mid-swap +57 bp

Covered bond issues in the

30%

Unsecured bond issues in the

Including €5.4bn raised in excess of the 2012 plan and allocated to the 2013 plan (€4.0bn from the BPCE funding pool and €1.5bn from the CFF funding pool)
raised during the year in the institutional market
1

February 19, 2014


2

Unsecured bond issues actually

13

Contents

1.


4.


5.

Conclusion

February 19, 2014


14


2013 /

Pro forma results

2013


2012

Q4-13 /
Q4-13

% change

Q4-12
% change

Net banking income
Excluding changes in provisions for home
purchase savings schemes
Banques Populaire banks
Caisses d'Epargne

15,231

4.5%

3,925

5.7%

15,219

3.9%

3,925

4.6%

6,346

6.1%

1,624

8.6%

6,344

5.8%

1,624

7.2%

6,940

3.9%

1,778

3.1%

6,930

3.0%

1,778

2.0%

Real estate Financing

735

-1.0%

197

1.9%

Insurance, International and Other networks

1,211

2.8%

325

8.5%

-10,103

0.4%

-2,578

-1.8%

Operating expenses
Gross operating income

5,129

13.6%

1,347

23.9%

66.3%

Cost / income ratio

-2.7 pts

65.7%

-5.0 pts

Cost of risk

-1,574

Income before tax

3,781

15.5%

959

23.0%

Net income attributable to equity holders
of the parent

2,398

13.9%

548

7.5%

9%

1 pt

8%

-

ROE

8.8%

-453

24.4%

Results pro forma of the buyback and subsequent cancellation by the Banque Populaire banks and the Caisses d'Epargne of the Cooperative Investment Certificates (CICs) held by Natixis

February 19, 2014


15


On-balance sheet deposits and savings1
& loan outstandings (in €bn)

Unless specified to the contrary, all changes are vs. 2012



>
>

Continued strong growth in on-balance sheet
deposits and savings1 (+9.9% vs. 2012)
Dynamic growth in loan outstandings (+6.1%
vs. 2012), driving the expansion of the customer
base

226

Stability in operating expenses: +0.4%
2.7 pts improvement in the cost/income ratio

Annual average cost of risk: 32 bp3
(+1 bp vs. 2012)



Contribution of the Commercial Banking
and Insurance division to the Group’s
attributable net income: €2.4bn in 2013
vs. €2.1bn in 2012

BP and CE networks excluding centralized savings products
changes in provisions for home purchase savings schemes

2 Excluding

February 19, 2014

46%

Loan outstandings

Banque Populaire banks

(48%)

Caisses d’Epargne

(40%)

2013


(2012)

Insurance, International and
Other networks

4%
(3%)

8%

Cost of risk3 (in bp)
44

34

38
23

Q4-12

48
33

28

Q1-13

3 Cost

Dec. 13

(9%)



1

Dec. 12

June 09

Dec. 13

Gross operating income (as a %)

42%

Gross operating income: +13.6%
>
>

Dec. 12

367

268

On-balance sheet deposits & savings

Net banking income: +3.9%2
> Net interest margin buoyed up by volumes and the
decline in interest rates paid on regulated savings
products
> Growth in commissions driven by customer base
growth and increased delivery of banking services



345

315

287

June 09



+37%

+40%

Strong commercial dynamics in the BP and
CE retail networks

38

29

Q2-13

38 32

39
27

Q3-13

Cost of risk of both retail networks

32

25

Q4-13
Caisses d'Epargne

of risk expressed in annualized bp on gross customer loan outstandings at the beginning of the period


16

3. Results of the Banque Populaire banks



Customer base: record-breaking new clients
> +96,000 individual customers and +10,000 professional
customers in 2013
> Continued
intensification
of
customer
relations:
+4.9% active individual customers using banking
services and insurance products



On-balance sheet deposits & savings1: +6.9%
> Strong growth in demand deposits (+6.5%) and term
deposit accounts (+8.9%)



Financial savings: stability in deposits
> Growth in life funds (+3.2%) after a surge in new
inflows in 2013



> Net interest margin:
> Commissions: +2.6%



Cost/income ratio: -3.7 pts

Cost of risk3: 39 bp in Q4-13
>

200

69

66

66

118

125

134

Dec. 2011

Dec. 2012

Dec. 2013

160

166

Dec. 2012

Dec. 2013

155

Dec. 2011

Financial savings
Loan outstandings

Contribution to Group results (pro forma)
in millions of euros
Net banking income, excl.
home purchase savings
schemes

2013

2013/
2012

Q4-13

Q4-13/
Q4-12

6,344

+5.8%

1,624

+7.2%

-4,205

+0.5%

-1,051

-0.1%

2,142
66.3%

+19.4%
-3.7 pts

574
64.7%

+29.4%
-5.7 pts

Cost of risk

-685

-8.3%

-166

-8.4%

944

+35.4%

256

+48.8%

Operating expenses

>

191

Attributable net income

+4.4%2



187


Loan outstandings: +3.5%
> Home loans: increase in outstandings (+7.0%); buoyant
growth in new loan production, driven by the
intensification of new customer relations
> Equipment loans: revival in new loan production despite
the sluggish environment (+4.0%)



Deposits and savings1 & loan outstandings
(in €bn)

-5 bp vs. Q4-12

Cost/income ratio

2 Excluding changes in provisions for home purchase savings schemes 3 Cost of risk expressed in annualized bp on gross customer loan outstandings at the beginning of the period
1

February 19, 2014


17

3. Results of the Caisses d’Epargne



Customer base: strong growth among priority
targets
> Individual customers using banking services: +3.7%
> Active professional customers (+4.8%) and active
corporate customers (+7.7%)



On-balance sheet deposits & savings1:+12.2%
> Positive inflows driven by demand deposits (+15.0%),
home purchase savings schemes (+7.5%) and term
deposit accounts (+22.2%)



Financial savings: stable deposits

Deposits and savings1 & loan outstandings
(in €bn)
268

280

300
171

119

119

118

149

162

Dec. 2012

Dec. 2013

Financial savings

> Life funds (+1.8%)




> Net interest margin: +3.5%2
> Commissions: +5.5%



2

Net banking income, excl.
home purchase savings
schemes
Operating expenses
Cost/income ratio

Cost of risk3: 25 bp in Q4-13

Cost of risk

>

1

Dec. 2012

Dec. 2013

Loan outstandings


>



Dec. 2011

Loan outstandings: +8.4%
> Real estate loans: new loan production remained buoyant
overall but downturn in the 2nd half of the year; real
estate loan outstandings +9.8%
> Equipment loans: outstandings (+6.5%), new production
+5.2% in the professional and corporate segments



201

181

Dec. 2011

185

Cost/income ratio: -1.9 pt

+2bp vs. Q4-12, remaining at a low level


2013

2013/
2012

Q4-13

Q4-13/
Q4-12

6,930

+3.0%

1,778

+2.0%

-4,562

+1.0%

-1,164

-2.6%

2,378
65.7%

+10.0%
-1.9 pt

614
65.5%

+15.9%
-3.8 pts

-529

+19.8%

-126

+22.2%

1,146

+4.5%

289

+1.6%

Excluding changes in provisions for home purchase savings schemes 3 Cost of risk expressed in annualized bp on gross customer loan outstandings at the beginning of the period

February 19, 2014


18

Real estate Financing1




Activity: outstanding commercial
performance in 2013
>

Individual customers: new loan production +17.8%
to €7.6bn; extremely strong commercial dynamics
despite the depressed market environment
Real estate investors and public facilities: all
markets stood up well; new loan production +9.0%
to €4.1bn

Loan outstandings2 (in €bn)



56.6

52.7

47.7

59.3

58.4

SCF: at the service of Group customers
>

SCF’s €5bn 2014 program designed to fund the
long-term loans granted by the retail networks and
Natixis rolled out in 2013
•



112.0

60.0

>

116.6

Volume of approximately €200m in loans
transferred by Group entities to SCF

Dec. 2011
Individual customers

Dec. 2012
Dec. 2013
Real-estate investors and public facilities


Stability in net banking income



Significant reduction in operating expenses
achieved by the cost-cutting plan

106.1

2013

Net banking income

2013/
2012

734

-1.0%

Operating expenses



Sharp rise in the cost of risk in Q4-13
>

1

Substantial provisions booked for a number of
specific cases and collective provision for the
portfolio of international assets managed on a
run-off basis

Principal entity contributing to the business line: Crédit Foncier

February 19, 2014

2

-

546

-6.8%

Cost/income ratio

188
74.4%

+20.8%
-4.6 pts

Cost of risk

-


Q4-13

250

+89.3%

-27

ns

Q4-13/
Q4-12

197

+1.9%

147

-12.9%

50
74.7%

ns
-12.7 pts

-

-

153

X3

-64

ns

Outstandings under management


19


Accelerated transformation of Crédit Foncier



Discontinuation and winding-up of Crédit
Foncier’s international activities: accelerated
asset disposal policy in 2013
>
>

Assets of €9.8bn divested since the strategic plan
began in Q4-11, with a discount limited to 2.3%1
Reduction in the portfolio of international assets:
more than 35% since September 30, 2011

Disposal of international assets and net impact
on net banking income1 (in €bn)
International Public Sector and sovereigns
4.9

>
>



International Public Sector and Sovereigns
>



Since the plan was first launched, disposal of assets
for €6.4bn, pursued at a faster pace in 2013;
outstanding assets down 40% since Sept. 30, 2011
All third-party securitizations on the Compagnie de
Financement Foncier balance sheet removed3 by
end-December 2013; as a result, the covered bonds
(obligations foncières) issued by SCF are eligible for
ECB funding operations

Assets worth €3.4bn divested since the start of the
plan; overall 29% reduction in these assets since
September 30, 2011

Residual portfolio of international assets
>

Given the structure of the residual portfolio, workout
management chiefly based on amortization

3.9

1.8

0.7
0.6

Securitization (chiefly RMBS2)

Asset disposals
(in €bn)

3.6
1.3



Securitization

1.8

2011
-0.04

1.0

2012

2013

-0.04

-0.15

Portfolio of international assets (in €bn)
37.5
24.3

20.6

12.3
16.9
Sept. 30, 2011

12.0
Dec. 31, 2013

International Public Sector and sovereigns
1

Net of liability buybacks, net impact of disposals listed under “Other businesses”

February 19, 2014

2

Residential Mortgage Backed Securities (securitized home loans)


Net impact1
on net
banking
income
(in €bn)

3

Securitization

Transferred to Crédit Foncier

20






Business activity indicators

Insurance
>
>

in billions of euros

Life insurance: revenues driven by Private Banking
Non-Life and Provident insurance: strong sales
momentum

2013

2013/
2012

2012

International

International1
>

>
>


Deposits & savings1

Deposits & savings: dynamic performance in the
individual customers (+4.2%) and corporate
customers segments (+4.5%)
Loans to individual customers: real estate loans
(+3.7%) and consumer finance (+4.6%)
Loans to corporate customers: MLT lending (-2.6%)

Other
>

>

networks2

Deposits & savings: sustained growth in on-balance
sheet deposits & savings (+11.5%), strong increase
in demand deposits (+37.4%), and net withdrawals
from term savings accounts (impact of interest
rates, fiscal measures)
Loans to individual customers: decline in
outstandings (-2.4%) following the decline in real
estate loans (-2.3%)
Loans to corporate customers: business activity
kept at a good level regarding medium-/long-term
and short-term loans (outstandings up +2.9% and
+5.4% respectively)

8.0

7.8

+2.4%

Loan outstandings1

8.9

8.9

=

Deposits & savings2

16.1

14.9

+8.0%

Loan outstandings2



7.1

7.0

+2.7%

Other networks

1
2

Figures for 2011 and 2012 restated following the sale of BCP Luxembourg in June 2013
Average amounts


2013

2013/
2012

Q4-13

Q4-13/
Q4-12

1

Principal entity contributing to the business line: BPCE International et Outre-Mer

February 19, 2014

2


334

+14.9%

69

+11.4%

Of which Insurance

194

+4.1%

44

-16.8%

Of which International

65

x 1.4

6

-35.2%

Of which Other networks

>

75

-2.6%

19

ns

Principal entity contributing to the business line: Banque Palatine


21


Core business lines of Natixis: Wholesale Banking, Investment
Solutions, Specialized Financial Services (SFS)
2013 /

Pro forma results

2013


2012

Q4-13 /
Q4-13

% change

Net banking income

Q4-12
% change

6,398

5.0%

1,616

2.7%

Wholesale Banking

2,867

1.1%

652

-4.7%

Investment Solutions

2,259

9.4%

640

9.9%

Specialized Financial Services

1,272

6.7%

324

5.7%

Operating expenses

-4,152

2.8%

-1,071

0.8%


2,246

9.3%

545

6.7%

64.9%

-1.4 pt

66.3%

-1.3 pt

Cost / income ratio
Cost of risk

-380

Income before tax

11.3%

-93

-11.8%

1,885

ROE

459

12.3%

915

10.4%

226

20.2%

10%

of the parent

8.9%

1 pt

11%

3 pts

Contribution figures ≠ figures published by Natixis

February 19, 2014


22


Wholesale Banking: very strong dynamic for the financing activities,
good resilience of capital market businesses in 2013


Financing activities


Commercial Banking
>
>



Change in net revenues (in €m)

Dynamic commercial activity with €3.5bn in new
loan production in Q4-13, totaling €11.4bn in 2013
Net revenues: +3% in Q4-13 despite a 12%
decrease in average outstandings

Structured finance
>
>

>

Record new loan production with €5.5bn in Q4-13,
totaling €17.5bn in 2013
Net revenues: +4% in 2013 and +2% in Q4-13
vs. Q4-12 (at constant exchange rates) fuelled by
the Global Energy & Commodities, Acquisition
Finance and US Real Estate Finance businesses
Arrangement fees: 30% of net banking income in
2013 (vs. 25% in 2012)

>


99

342

359

94

96

96

388

1022

361

374

1047

2012

2013

361
102

262

246

263

280

259

Q4-12

Q1-13

Q2-13

Q3-13

Q4-13

Structured finance

Commercial Banking

475

Net revenues stable in Q4-13 vs. Q4-12 but
displaying growth if the CVA/DVA negative effect is
excluded; net revenues held up in 2013 in less
buoyant market conditions; sustained activity of the
debt platform and dynamic development in Asia and
the USA
#1 in France in the primary euro-denominated bond
market with corporates in 20131

Equity
>

1

373

FIC-T
>

1,435

Change in net revenues (in €m)

Capital markets


1,395

Stable net revenues in 2013, buoyed up by the
dynamism of the derivatives business and the
international platforms

Dealogic – in number of transactions

February 19, 2014


384
332

308
299
212

1,508

219

1,495

1092

72

1077

304
273
214

96

103

113

111

90

416

418

Q4-12

Q1-13

Q2-13

Q3-13

Q4-13

2012

2013

Impact of non-recurring items
Forex, Interest rate, Commodities & Treasury (FIC-T)
Equity

23


Investment Solutions: Q4-13 and full-year growth in all business lines


Asset management


Asset management: AuM (in €bn)

Record-breaking net inflows of €20bn in
2013 (excluding money market funds)
>

>

>

Harris Associates: good performance in Equity Value
expertise with $18bn net inflows; the Oakmark
International fund is ranked #2 in the US in terms
of net inflows (all categories combined)
Loomis, Sayles & Co: alternative expertise in Fixed
Income and the development of Equity Growth
expertise made it possible to maintain buoyant new
inflows of $10bn
More generally, the alternative expertise (Alpha
Simplex, Gateway, H20, OSSIAM, etc.) developed
more recently in Europe and the USA generated new
inflows in excess of €3.4bn in 2013

Insurance


+37.2
+13.4
629

-12.4
591

591,2

592,2

592,2

AuM at Dec. 31,
2012

Net
inflows

Fx
effects

Market
effect

AuM at Dec. 31,
2013

Asset management: AuM by area
(end of period - in €bn, 1 year growth in %)

Revenues: +39% vs. 2012 and +7% in Q4-13
vs. Q4-12 driven by all segments




Personal protection & ADE: turnover: €0.6bn, +14%
Life insurance
>
>

Net inflows of +€0.4bn (vs. -€1.2bn in 2012)
Assets of €39bn, +4% over the year

304

Private Banking



+0.4%

320
+21%

Net revenues: +4% in Q4-13 vs. Q4-12 (like-for-like basis)
Net inflows: +€0.35bn in 2013, driven by own clients and
BPCE networks



+19% at constant
exchange rates

Assets under management: €22.4bn at Dec. 31, 2013,

5
United States

Europe

Asia

+8% over the year

February 19, 2014


24


SFS: strong revenue growth in the employee benefit schemes and
sureties & financial guarantees businesses in Q4-13


Employee benefit
schemes: AuM (in €bn)

Employee benefit schemes







14.5%

Net revenues: +7% in Q4-13 vs. Q4-12
Employee benefit schemes: 13% growth in
assets under management to almost €22bn
at end-2013
Service vouchers: the Chèque de Table®
lunch voucher business continues to gain
market share (14.5%) with 12% growth in
the total equivalent value issued

Sureties & financial guarantees (CEGC)


Change in Chèque de
Table® market share,
as a %

+13%

10.0%

February 19, 2014


12.0%

21.8
19.4

Q4-12

Q4-13

Dec. 08 Dec. 10 Dec. 11 Dec. 12 Dec. 13

CEGC: premiums written (in €m)

Net revenues: significant 13% rise in Q4-13
vs. Q4-12
Strong increase in premiums written
(+70%) in Q4-13 vs. Q4-12 with a doubling
of premiums written in the individual
customers segment

11.1%

13.4%

+70%
89.0
52.5

Q4-12

Q4-13

25

3. Equity interests1

Pro forma results

2013 /
2013


Q4-13 /

2012

Q4-13

Q4-12

% change

% change

Net banking income

1,653

-3.4%

450

1.0%

Operating expenses

-1,395

-0.1%

-377

6.0%


of the parent

73

-19.0%

ns

3

ns

232

Income before tax

-18.1%

2

Cost of risk

258

-18.4%

42

-30.8%

45

-31.8%

-10

-11.5%

1 The “Equity interests” division includes investments in Coface, Nexity and Volksbank Romania in addition to the Private Equity activities of Natixis

February 19, 2014


26

3. Equity interests

Insurance turnover (in €m)

Coface


Insurance turnover virtually stable in 2013
vs. 2012 despite the difficult economic
environment in Europe



Extremely dynamic commercial activity in
Q4-13



Efficient risk management:
>

>

+4%

333

Substantial decline in the loss ratio in Q4-13, to
48.8% vs. 54.3% in Q3-13 and 51.8% in Q4-12
Stabilization of the loss ratio at 53.8% in 2013,
despite the adverse macroeconomic environment

353

340

331

347

Q4-12

Q1-13

Q2-13

Q3-13

Q4-13

Breakdown of revenues in 2013

Nexity


Volume of reservations for new housing
units in France very close to 2012 levels
(-1%) but increase in value (+6%)



Backlog: €3.4bn at December 31, 2013 (+8.3%

67%

Residential real estate

vs. December 31, 2012), equivalent to 18 months of
development activity for Nexity


17%

Commercial real estate
Services & distribution

Revenues: €2.7bn in 2013, -3.3%
16%

February 19, 2014


27

Contents

1.


4.


5.

Conclusion

February 19, 2014


28

4. Let's create leading banks for one-to-one and online
relations


Innovation at the service of our customers
>

>
>



The Caisse d’Epargne digital safety deposit box, a
service facilitating the automatic storage of
documents adopted by 250,000 customers just 3
months after its launch
V.me by Visa, the electronic wallet to simplify online
payments
Innov&plus, a solution designed to help companies
finance their innovative projects. Banque Populaire
is the 1st bank in France to have signed an
agreement with the European Investment Fund

22

27

56

57

Dec. 12

Dec. 13

Dec. 12

Dec. 13

Banque Populaire websites

Caisse d'Epargne websites

Mobile applications downloaded (in millions)

The development of digital banking
>

Continued pursuit of the “Digital Enterprise”
program
•

>



Monthly visits to the websites
(in millions of visits)

Launch and roll-out of the electronic signature in local
branches, making life easier for customers

The electronic signature has already been rolled out
in more than 3500 branches run by both retail
networks

Dec. 12

The Banque Populaire and Caisse d’Epargne names
rank among the 15 most popular brands in France,
all business sectors taken together

Dec. 13

Number of Banque Populaire
applications downloaded

>
>

February 19, 2014

1.2

1.8
Dec. 12

2.9

Dec. 13

Number of Caisse d'Epargne
applications downloaded

Social networks

Stronger brands
>

0.8


More than
d’Epargne
More than
d’Epargne

762,000 Banque Populaire and Caisse
Facebook fans
20,000 Banque Populaire and Caisse
Twitter followers

29

4. Fully-fledged bancassurance specialist: creation of a
single industrial platform for insurance activities



Life insurance
>

Gross inflows of €10.5bn: +15% for BPCE
vs. +6% for the wider market1
Life insurance outstandings: +2.3%
Launch of the Assurément#2016 initiative:
creation of an offering and efficient industrial
structure to market new savings and provident
insurance contracts, underwritten by Natixis
Assurances and distributed via the CE networks,
starting in 2016

>
>

Life insurance – Business activity indicators2

150.0
9.1

2012

2013

Outstandings (in €bn)

Strong commercial momentum with revenue growth
of +9.5%
•

>
>

Dec. 2013

Non-Life insurance – Business activity indicators3

Non-life and Provident insurance
>

Dec. 2012

10.5

Gross inflows (in €bn)



153.5

Including +10.0% in non-life vs. +2.0%
for the wider market1

Portfolio of contracts: +10%
BPCE Assurances: project of acquisition by Natixis
of BPCE’s interest in the subsidiary (60% of the
capital) approved on February 19, 2014

1.2

2012

1.3

2013

 Revenues (in €bn)

3.6

2012

4.0

2013

Portfolio of contracts
(in millions of units)

“Growing differently”: becoming a fully-fledged bancassurer
and, ultimately, providing insurance to 1/3 of our customers
1

Source: FFSA

2

Entities included: CNP Assurances, Natixis Assurances, Prépar Vie

February 19, 2014

3

Entities included: BPCE Assurances, CNP Assurances, Natixis Assurances, Prépar


30

4. Core business lines of Natixis: building strong momentum
Top asset gatherers (US long-term funds)


Asset management: 2013, a recordbreaking year
>
>

>

Record net inflows of +€20bn (excl. money market
funds), including $12.8bn from US long-term funds
The distribution platform (US and International)
reached $275bn in distributed assets as of
end-2013; gross sales exceeded $80bn in 2013
Strong diversification in the expertise distributed
(Equity, Alternatives, Fixed Income)

YTD Dec - in $m

YTD Dec - in $m

1. Vanguard

74,608

6. Goldman Sachs

14,220

2. DFA

23,198

7. MainStay Funds

14,181

1

3. JPMorgan

21,094

8. Natixis

4. MFS

16,957

9. BlackRock

5. Oppenheimer

15,911

12,833
10,782

10. John Hancock

9,945

Structured finance: new loan production (in €bn)


Wholesale Banking: foundations laid for the
implementation of New Frontier
>

Implementation of the O2D model in January 2013
•
•



Dedicated organization, notably with the creation of
Portfolio Management
Partnerships with institutional investors

SFS: continued dynamism with the retail
networks
>

>

Consumer financing: a comprehensive range of
solutions in the areas of revolving credit and personal
loans for clients of the Groupe BPCE networks
Factoring: strong commercial momentum with the
Groupe BPCE networks, particularly with the Caisses
d’Epargne

4.5

Q1-13

3.5

4.1

Q2-13

Q3-13

5.5

Q4-13

Factored turnover (France – in €bn)
+5%

29.8

28.5

2012

2013

Natixis includes the assets managed by its investment funds: Loomis Sayles Funds, Hansberger International Series, Aurora Horizons Fund and Oakmark Funds. NGAM Distribution L.P. is the
distributor responsible for Natixis funds, Loomis Sayles Funds, Hansberger Funds and Aurora Horizons Fund, and has entered into a commercial agreement for Oakmark Funds. Source: Strategic
Insight/Simfunds – exclusively for the open-end funds, excluding ETFs, money-market products and affiliated funds of funds
1

February 19, 2014


31

Contents

1.


4.


5.

Conclusion

February 19, 2014


32

5. Conclusion



Groupe BPCE is confirming its role as a major player in financing the French economy:
6.1% growth in loan outstandings in 2013



Significant increase in net income: €2.9bn1 in 2013, +26.2% vs. 2012




Improvement in the cost/income ratio
Cost of risk kept at a moderate level



Substantial improvement in capital adequacy: Common Equity Tier-1 ratio of 10.4%2
at December 31, 2013, +150 bp in 2013



Accelerated balance sheet restructuring (GAPC and CFF), currently in its final stages,
allowing the Group to leverage its strengths more effectively in favor of its customers



Strong foundation for the new 2014-2017 strategic plan “Growing differently”

Results pro forma of the buyback and subsequent cancellation by the Banque Populaire banks and the Caisses d'Epargne of the Cooperative Investment Certificates (CICs) held by Natixis and
excluding revaluation of own debt 2 Estimate at Dec. 31, 2013 – CRR/CRD IV, as applied by Groupe BPCE ; without transitional measures and after restatement to account for deferred tax assets
1

February 19, 2014


33

Annexes

Annexes


Groupe BPCE
>
>

>
>
>
>


Organizational structure of Groupe BPCE
Income statement: reconciliation of pro-forma
consolidated data to published consolidated
data
Income statement
Income statement per business line
Consolidated balance sheet
Goodwill

>
>

Statement of changes in shareholders' equity
Reconciliation of shareholders' equity to
Tier-1 capital under Basel 2.5
Prudential ratios under Basel 2.5 and credit
ratings
Risk-weighted assets under Basel 2.5





>
>

Income statement
Banque Populaire network –
Change in savings and loan outstandings
Caisse d'Epargne network –
Change in savings and loan outstandings
Real estate Financing, Insurance, International
and Other networks

Income statement

Workout portfolio management
and "Other businesses"
>



Income statement

Equity interests
>

Income statement

Risks
>

Non-performing loans and impairment
•
•

>
>
>

>
>

Wholesale Banking, Investment Solutions
and SFS
>

Financial structure
>
>





>
>

Groupe BPCE
Networks

Breakdown of commitments
Detailed exposure
Exposure to the sovereign debts of peripheral
European countries
Exposure to European sovereign risks
Exposure to countries subject to a rescue
plan


Sensitive exposures (recommendations of
the Financial Stability Forum – FSF)



February 19, 2014



Groupe BPCE, a socially responsible
company
35

Annex - Groupe BPCE

Organizational structure of Groupe BPCE

February 19, 2014


36

Annex - Groupe BPCE

Income statement: reconciliation of pro-forma consolidated data to
published consolidated data

2013
Groupe BPCE

2013

Impacts of
pro forma
operations

Commercial Banking & Insurance

2013 pro
forma

2013

Impacts of
pro forma
operations

2013 pro
forma

Wholesale Banking, Investment
Solutions & Specialized
Financial Services
2013

Impacts of
pro forma
operations

2013
pro
forma

Equity Interests
Impacts of
pro forma
operations

2013

2013
pro
forma

2013

Impacts of
pro forma
operations

2013
pro
forma

Other businesses
Impacts of
pro forma
operations

2013

2013
pro
forma

Net banking income

22,826

0

22,826

15,378

-146

15,231

6,398

0

6,398

1,653

0

1,653

189

0

189

-791

146

Operating expenses

-16,135

0

-16,135

-10,103

0

-10,103

-4,152

0

-4,152

-1,395

0

-1,395

-89

0

-89

-397

0

-397

6,691

0

6,691

5,275

-146

5,129

2,246

0

2,246

258

0

258

99

0

99

-1,188

146

-1,042

-2,042

0

-2,042

-1,574

0

-1,574

-380

0

-380

2

0

2

-71

0

-71

-19

0

-19

4,889

0

4,889

3,927

-146

3,781

1,885

0

1,885

232

0

232

28

0

28

-1,184

146

-1,037

Cost of risk
Income before tax

-644

2012
Groupe BPCE

2012

Impacts of
pro forma
operations


2012 pro
forma

2012

Impacts of
pro forma
operations

2012 pro
forma

Financial Services
2012

Impacts of
pro forma
operations

2012
pro
forma

Equity Interests
Impacts of
pro forma
operations

2012

2012
pro
forma

2012

Impacts of
pro forma
operations

2012
pro
forma

Other businesses

2012

Impacts of
pro forma
operations

2012
pro
forma

Net banking income

21,946

0.0

21,946

14,780

-201

14,579

6,093

0

6,093

1,711

0

1,711

350

0

350

-988

201

Operating expenses

-15,935

0.0

-15,935

-10,064

0

-10,064

-4,037

0

-4,037

-1,396

0

-1,396

-127

0

-127

-312

0

-312

6,011

0.0

6,011

4,717

-201

4,516

2,055

0

2,055

315

0

315

224

0

224

-1,300

201

-1,099

-2,199

0.0

-2,199

-1,447

0

-1,447

-341

0

-341

-5

0

-5

-262

0

-262

-145

0

-145

3,743

0.0

3,743

3,473

-201

3,272

1,730

0

1,730

285

0

285

-43

0

-43

-1,702

201

-1,501

Cost of risk
Income before tax

February 19, 2014


-787

37

Annex - Groupe BPCE

Income statement: reconciliation of pro-forma consolidated data to
published consolidated data

Q4-13

Q4-13

Impacts of
pro forma
operations

Financial Services

Commercial Banking &
Insurance

Groupe BPCE
Q4-13
pro
forma

Q4-13

Impacts of
pro forma
operations

Q4-13
pro
forma

Q4-13

Impacts of
pro forma
operations

Q4-13
pro
forma

Equity Interests
Impacts of
pro forma
operations

Q4-13

Q4-13
pro
forma

Q4-13

Impacts of
pro forma
operations

Q4-13
pro
forma

Other businesses
Impacts of
pro forma
operations

Q4-13

Q4-13
pro
forma

Net banking income

5,834

0

5,834

3,941

-16

3,925

1,616

0

1,616

450

0

450

76

0

76

-248

16

-233

Operating expenses

-4,256

0

-4,256

-2,578

0

-2,578

-1,071

0

-1,071

-377

0

-377

-20

0

-20

-211

0

-211

1,578

0

1,578

1,363

-16

1,347

545

0

545

73

0

73

57

0

57

-459

16

-444

-565

0

-565

-453

0
0

-453

-93

0

-93

3
0

0

3

-5
0

0
0

-5

-17

0
0

-17
0

1,053

0

1,053

975

-16

959

459

0

459

42

0

42

51

0

51

-475

16

-459

Cost of risk
Income before tax

Q4-12

Q4-12

Impacts of
pro forma
operations

Financial Services

Commercial Banking &
Insurance

Groupe BPCE
Q4-12
pro
forma

Q4-12

Impacts of
pro forma
operations

Q4-12
pro
forma

Q4-12

Impacts of
pro forma
operations

Q4-12
pro
forma

Equity Interests
Impacts of
pro forma
operations

Q4-12

Q4-12
pro
forma

Q4-12

Impacts of
pro forma
operations

Q4-12
pro
forma

Other businesses

Q4-12

Impacts of
pro forma
operations

Q4-12
pro
forma

Net banking income

5,512

0

5,512

3,760

-46

3,713

1,573

0

1,573

445

0

445

160

0

160

-425

46

Operating expenses

-4,157

0

-4,157

-2,626

0

-2,626

-1,062

0

-1,062

-355

0

-355

-24

0

-24

-89

0

-89

1,355

0

1,355

1,134

-46

1,087

511

0

511

90

0

90

135

0

135

-514

46

-468

-644
0

0
0

-644
0

-364
0

0
#VALEUR!

-364

-106
0

0
#VALEUR!

-106

1
0

0
#VALEUR!

1

-170
0

0
#VALEUR!

-170

-6
0

0
#VALEUR!

-6

490

0

490

826

-46

780

409

0

409

61

0

61

-34

0

-34

-772

46

-726

Cost of risk
Income before tax

February 19, 2014


-379

38

Annex - Groupe BPCE

Annual income statement per business line

Commercial
Banking &
Insurance

Wholesale Banking,
Investment
Solutions &
Specialized Financial
Services

2013

2012

15,378
-10,103

14,780
-10,064

6,398
-4,152

Cost / income ratio

5,275
65.7%

4,716
68.1%

Cost of risk
Income before tax

-1,574
3,927

Income tax
Minority interests

Net banking income
Operating expenses

Net income attributable to equity
holders of the parent

2012

%

6,093
-4,037

21,776
-14,255

20,873
-14,101

4.3%
1.1%

1,653
-1,395

1,711
-1,396

-603
-485

2,246
64.9%

2,056
66.3%

7,521
65.5%

6,772
67.6%

11.1%
-2.1 pts

258
84.4%

315
81.6%

-1,447
3,472

-380
1,884

-341
1,730

-1,954
5,811

-1,788
5,202

9.3%
11.7%

2
233

-1,195
-44

-606
-364

-540
-361

-2,084
-405

-1,735
-405

20.1%
0.0%

2,408

2,233

914

829

3,322

3,062

8.5%


2013

2012

Workout portfolio
management &
Other businesses

2013

February 19, 2014

2012

Equity interests

-1,478
-41


2013

Total core businesses

2013

2012

Groupe BPCE

2013

2012

%

-638
-438

22,826
-16,135

21,946
-15,935

4.0%
1.3%

-1,088
ns

-1,076
ns

6,691
70.7%

6,011
72.6%

11.3%
-1.9 pt

-5
285

-90
-1,155

-406
-1,744

-2,042
4,889

-2,199
3,743

-7.1%
30.6%

-106
-82

-138
-81

291
166

507
256

-1,899
-321

-1,366
-230
2,147

39.0%
39.6%

45

66

-698

-981

2,669

2,147

24.3%

39

Annex - Groupe BPCE

Quarterly income statement per business line

Wholesale Banking,
& Specialized
Financial Services

Commercial
Banking &
Insurance

Q4-13

Q4-12

Q4-13

Q4-12

Total core businesses

Q4-13

Q4-12

%

Equity interests

Q4-13

Q4-12

Workout portfolio
management &
Other businesses
Q4-13

Q4-12

Groupe BPCE

Q4-13

Q4-12

%

Net banking income
Operating expenses

3,941
-2,578

3,759
-2,627

1,616
-1,071

1,573
-1,062

5,557
-3,649

5,332
-3,689

4.2%
-1.1%

450
-377

445
-356

-173
-230

-265
-112

5,834
-4,256

5,512
-4,157

5.8%
2.4%

Cost / income ratio

1,363
65.4%

1,132
69.9%

545
66.3%

511
67.5%

1,908
65.7%

1,643
69.2%

16.1%
-3.5 pts

73
83.8%

89
80.0%

-403
ns

-377
42.3%

1,578
73.0%

1,355
75.4%

16.5%
-2.5 pts

Cost of risk
Income before tax

-453
975

-364
825

-94
458

-105
409

-547
1,433

-469
1,234

16.6%
16.1%

3
44

2
61

-21
-424

-177
-805

-565
1,053

-644
490

-12.3%
ns

Income tax
Minority interests

-406
-13

-277
-10

-143
-90

-123
-97

-549
-103

-400
-107

37.3%
-3.7%

-25
-27

-57
-15

132
52

190
74

-442
-78

-267
-48
175

65.5%
62.5%

556

538

225

189

781

727

7.4%

-8

-11

-240

-541

533

175

ns


February 19, 2014


40

Annex - Groupe BPCE

Quarterly income statement

Groupe BPCE

Q1-12

Q2-12

Q3-12

Q4-12

2012

Q1-13

Q2-13

Q3-13

Q4-13

2013

Net banking income

5,450

5,671

5,313

5,512

21,946

5,679

5,728

5,585

5,834 22,826

Operating expenses

-3,953
0
1,497

-3,899
0
1,772

-3,926
0
1,387

-4,157
0
1,355

-15,935
0
6,011

-3,944
0
1,735

-4,023
0
1,705

-3,912
0
1,673

-4,256 -16,135
0
0
1,578 6,691

72.5%

68.8%

73.9%

75.4%

72.6%

69.4%

70.2%

70.0%

73.0%

70.7%

Cost / income ratio

-460

Income tax

-648

-447

-644

-2,199

-485

-533

-459

-565

-2,042

1,081
0

Cost of risk
Income before tax

1,187
0

985
0

490
0

3,743
0

1,304
0

1,268
0

1,264
0

1,053
0

4,889
0

-380

-408

-311

-267

-1,366

-456

-397

-604

-442

-1,899

Minority interests

-36
0

-111
0

-35
0

-48
0

-230
0

-94
0

-88
0

-61
0

-78
0

-321
0

of the parent

665

668

639

175

2,147

754

783

599

533

2,669

February 19, 2014


41

Annex - Groupe BPCE

Consolidated balance sheet

ASSETS in €m
C ash and amounts due from central banks
Financial assets at fair value through profit or loss
Hedging derivatives

Dec. 31, 2013

Dec. 31, 2012

60,410

53,792

206,072

214,991

LIABILITIES in €m
Amounts due to central banks
Financial liabilities at fair value through profit or loss

6,643

10,733

Hedging derivatives

79,374

83,409

Amounts due to banks

Loans and receivables due from credit institutions

108,038

118,795

Loans and receivables due from customers

578,419

574,856

Available-for-sale financial assets

Remeasurement adjustment on interest-rate risk
hedged portfolios

11,116

Amounts due to customers

458,189

430,519

Debt securities

214,654

230,501

1,237

1,994

Remeasurement adjustment on interest-rate risk
7,911

11,567

11,042

hedged portfolios
Tax liabilities

543

612

Accrued expenses and other liabilities

48,698

Technical reserves of insurance companies

51,573

47,997
49,432

5,251

4,927

46,675

Investments in associates

2,629

2,442

Provisions

Investment property

2,022

1,829

Subordinated debt

Property, plant and equipment

4,539

4,783

Consolidated equity

Intangible assets

1,282

1,358

Equity attributable to equity holders of the parent

Goodwill

4,168

4,249

Minority interests

1,123,520

1,147,521

TOTAL ASSETS

February 19, 2014

0
194,793
111,399

6,186
51,145

Accrued income and other assets

0
179,832
6,185

6,622

Tax assets

Dec. 31, 2012

88,811

5,060

Held-to-maturity financial assets

Dec. 31, 2013


TOTAL LIABILITIES

10,375

9,875

58,172

54,356

51,339

50,554

6,833

3,802

1,123,520

1,147,521

42

Annex - Groupe BPCE
Goodwill

Commercial Banking
and Insurance entities

Dec. 31,
2012

Acquisitions
/Disposals

909

TOTAL

-11

706

-8

-1

-12

-53

Other
movements

Dec. 31,
2013
904

3

4,249

Equity interests

Conversion

-4

2,634

Natixis

Impairment

-3

2,555
709

-16

-54

-3

4,168

Goodwill amortization is recognized under “Other businesses”

February 19, 2014


43

Annex – Financial structure

Statement of changes in shareholders’ equity

Equity
attributable to
equity holders
of the parent


December 31, 2012
Impact of change in IAS 19R standard on pensions

50,554
-175
50,379

January 1st, 2013

-481

Distributions
Capital increase (cooperative shares)

1,911
-3,341

CIC buyback

2,669

Income
Remuneration of deeply subordinated notes and related currency effect

-481

Changes in gains & losses directly recognized in equity

730

Transactions with minorities

-62
15

Other
December 31, 2013

February 19, 2014


51,339

44


Reconciliation of shareholders’ equity to Tier-1 capital under Basel 2.5


-4.5

-5.2

+5.8

-3.6

+5.3
-1.8

51.3

47.3

43.8

Equity attributable
to equity holders
of the parent

Cancellation of Minority interests²
deeply
subordinated
notes¹ included in
equity attributable
to equity holders
of the parent

Goodwill &
intangibles

Other
restatements

Total Equity Core
T1 capital

42.0

Deductions
(50 %)

Total Core T1
capital

Deeply
subordinated
notes¹

Total T1 capital

Deeply subordinated notes: €4.5bn of BPCE deeply subordinated notes included in equity attributable to equity holders of the parent + €0.8bn of deeply subordinated notes issued by
Natixis included in minority interests 2 Minority interests (prudential definition) notably excluding the deeply subordinated notes issued by Natixis
1

February 19, 2014


45


Prudential ratios under Basel 2.5 and credit ratings

Dec. 31,
20131

Dec. 31,
2012

Dec. 31,
20112

Total risk-weighted
assets

€369bn

€381bn

€388bn

Core Tier-1 capital

€42.0bn

€40.9bn

€35.4bn

Tier-1 capital

€47.3bn

€46.5bn

€41.1bn

Core Tier-1 ratio

11.4%

10.7%

9.1%

Tier-1 ratio

12.8%

12.2%

10.6%

Total capital ratio

14.4%

12.5%

11.6%

Long-term credit ratings (February 19, 2014)
A
outlook negative
A2
outlook stable
A
outlook stable
1

Estimate

2

Pro forma to take into account the IRB approach homologation for exposure to the Caisses d’Epargne retail customers segment

February 19, 2014


46


Risk-weighted assets under Basel 2.5
Breakdown of risk-weighted assets
Dec. 31,
20131

Dec. 31,
2012

Dec. 31,
20112

€315bn

€323bn

€335bn

Market risk

€16bn

€19bn

€17bn

Operational risk

€38bn

€39bn

€36bn

€369bn

€381bn

€388bn

Credit risk

Total risk-weighted
assets

Breakdown of risk-weighted assets at December 31, 2013

1

Estimate

2

Pro forma to take into account the IRB approach homologation for exposure to the Caisses d’Epargne retail customers segment

February 19, 2014


47

Annex – Commercial Banking and Insurance

Banques Populaires
Net banking income
Operating expenses
Cost / income ratio
Cost of risk
Income before tax

2013

2012

6,390
-4,205

Caisses d'Epargne
%

6,033
-4,185

5.9%
0.5%

2013

2012

6,997
-4,562

Insurance, International & Other
networks

Real Estate Financing (*)
%

6,756
-4,518

2013

3.6%
1.0%

2012

777
-546

%

808
-586

2013

-3.8%
-6.8%

2012

1,214
-790

%

1,183
-775

2013

2.6%
1.9%

2012

%

15,378
-10,103

14,780
-10,064

4.0%
0.4%

2,185

1,848

18.2%

2,435

2,238

8.8%

231

222

4.1%

424

408

3.9%

5,275

4,716

11.9%

65.8%

69.4%

-3.6 pts

65.2%

66.9%

-1.7 pt

70.3%

72.5%

-2.3 pts

65.1%

65.5%

-0.4 pt

65.7%

68.1%

-2.4 pts

-685
1,525

-747
1,126

-8.3%
35.4%

-529
1,904

-441
1,797

20.0%
6.0%

-250
0

-132
105

89.4%
-100.0%

-110
498

-127
444

-13.4%
12.2%

-1,574
3,927

-1,447
3,472

8.8%
13.1%

-571

-388

47.2%

-780

-650

20.0%

2

-41

-104.9%

-129

-116

11.2%

-1,478

-1,195

23.7%

-6

-7

-14.3%

0

0

ns

-2

-1

ns

-33

-36

ns

-41

-44

-6.8%

948

731

29.7%

1,124

1,147

-2.0%

0

63

-100.0%

336

292

15.1%

2,408

2,233

7.8%

Income tax
Minority interests
Net income attributable to
equity holders of the parent

* Principal component: Crédit Foncier

February 19, 2014


48


Banques Populaires
Net banking income
Operating expenses

Q4-13

Q4-12

1,632
-1,051


%

1,507
-1,052

Q4-13

8.3%
-0.1%

Q4-12

1,785
-1,164

Real Estate Financing (*)
%

1,743
-1,194

Insurance, International & Other
networks

(*)

Caisses d'Epargne

Q4-13

2.4%
-2.5%

Q4-12

199
-147

%

208
-169

Q4-13

-4.3%
-13.0%

Q4-12

325
-216

%

301
-212

8.0%
1.9%

Q4-13
3,941
-2,578

Q4-12
3,759
-2,627

%
4.8%
-1.9%

581

455

27.7%

621

549

13.1%

52

39

33.3%

109

89

22.5%

1,363

1,132

20.4%

64.4%

69.8%

-5.4 pts

65.2%

68.5%

-3.3 pts

73.9%

81.3%

-7.4 pts

66.5%

70.4%

-4.0 pts

65.4%

69.9%

-4.5 pts

Income before tax

-165
424

-181
283

-8.8%
49.8%

-126
492

-103
446

22.3%
10.3%

-154
-88

-51
-6

ns
ns

-8
147

-29
102

-72.4%
44.1%

-453
975

-364
825

24.5%
18.2%

Income tax

-162

-105

54.3%

-201

-150

34.0%

24

8

ns

-67

-30

123.3%

-406

-277

46.6%

-1

1

ns

0

0

ns

0

0

ns

-12

-11

9.1%

-13

-10

30.0%

261

179

45.8%

291

296

-1.7%

-64

2

ns

68

61

11.5%

556

538

3.3%

Cost / income ratio
Cost of risk

Minority interests


February 19, 2014


49



Q1-12

Q2-12

Q3-12

Q4-12

2012

Q1-13
(*)

Q2-13

Q3-13

Q4-13

2013

Net banking income

3,774

3,646

3,601

3,759

14,780

3,752

3,891

3,794

3,941

15,378

Operating expenses

-2,512

-2,456

-2,469

-2,627

-10,064

-2,483

-2,549

-2,493

-2,578

-10,103

1,262

1,190

1,132

1,132

4,716

1,269

1,342

1,301

1,363

5,275

66.6%
0

67.4%
0.0

68.6%
0.0

69.9%
-

68.1%
0

66.2%
0.0

65.5%
0.0

65.7%
0.0

65.4%
-

65.7%
-

-297

-494

-292

-364

-1,447

-353

-435

-333

-453

-1,574

1,010
0

750
0

887
0

825
0

3,472
0

961
0

976
0

1,015
0

975
0

3,927
0

-355

-257

-306

-277

-1,195

-327

-311

-434

-406

-1,478

Minority interests

-12
0

-9
0

-13
0

-10
0

-44
0

-9
0

-8
0

-11
0

-13
0

-41
0


643

484

568

538

2,233

625

657

570

556

2,408

Cost / income ratio
Cost of risk
Income before tax
Income tax

February 19, 2014


50

Banque Populaire banks and Caisses d’Epargne

Banques Populaires

Q1-12

Q2-12

Q3-12

Q4-12

2012

Q1-13 Q2-13 Q3-13

Net banking income

1,571

1,468

1,487

1,507

6,033

Operating expenses

-1,048
0
523

-1,039
0
429

-1,046
0
441

-1,052
0
455

66.7%
0.0

70.8%
0.0

70.3%
0.0

-174

-275

353
0

Income before tax
Income tax
Minority interests

1,574

1,632

6,390

-4,185
0
1,848

-1,038 -1,076 -1,040
0
0
0
517
553
534

-1,051
0
581

-4,205
0
2,185

69.8%
-

69.4%
0.0

66.8% 66.1% 66.1%
0.0
0.0
0.0

64.4%
-

65.8%
-

-117

-181

-747

-159

-200

-161

-165

-685

157
0

333
0

283
0

1,126
0

363
0

359
0

379
0

424
0

1,525
0

-54

-95

-105

-388

-128

-122

-159

-162

-571

-5
0

Cost of risk

1,629

2013

-134

Cost / income ratio

1,555

Q4-13

-1
0

-2
0

1
0

-7
0

-2
0

0
0

-3
0

-1
0

-6
0

214

102

236

179

731

233

237

217

261

948

Caisses d'Epargne

1,683

Net banking income
Operating expenses
Cost / income ratio
Cost of risk
Income before tax

Q3-12

Q4-12

2012

Q1-13 Q2-13 Q3-13

1,681

1,649

1,743

6,756

-1,128 -1,102
0
0
555
579

-1,094
0
555

-1,194
0
549

67.0% 65.6%
0.0
0.0
-95
-126

66.3% 68.5%
0.0 -117
-103

1,731

1,758

Q4-13

2013

1,723

1,785

6,997

-4,518
0
2,238

-1,133 -1,145 -1,120
0
0
0
598
613
603

-1,164
0
621

-4,562
0
2,435

66.9%
0.0
-441

65.5% 65.1% 65.0% 65.2% 65.2%
0.0
0.0
0.0 -130
-139
-134
-126
-529

460
0


438
0

446
0

1,797
0

467
0

475
0

470
0

492
0

1,904
0

-169

-165

-150

-650

-169

-177

-233

-201

-780

0
0

Minority interests

453
0

-166

Income tax

February 19, 2014

Q1-12 Q2-12

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

294

284

273

296

1,147

298

298

237

291

1,124


51

Annex - Commercial Banking and Insurance
Banque Populaire network: customer deposits & savings (in €bn)

% change
2013 / 2012
Demand deposits

+6.5%

Passbook savings
accounts

+6.1%

Regulated home
savings plans

+2.2%

Term accounts, PEP

+8.9%

Mutual funds

-7.7%

Employee savings

+2.7%

Life insurance

+3.2%

Other1
Total deposits &
savings

1

ns
+4.2%

As of Q2-13, deposits from financial institutions are presented under the heading “Other”. The figures for previous periods have been restated accordingly

February 19, 2014


52

Banque Populaire network: customer loan outstandings (in €bn)

% change
2013 / 2012
Real-estate loans
Consumer loans and
short-term credit facilities
Equipment loans
Other
Total loans

February 19, 2014


+7.0%
-2.5%
+0.8%
ns
+3.5%

53

Caisse d’Epargne network: customer deposits & savings (in €bn)

% change
2013 / 2012
Demand deposits

+15.0%

Passbook savings
accounts

-0.8%

Regulated home
savings plans

+7.5%

Term accounts, PEP &
miscellaneous

+22.2%

BPCE bonds placed in
the CE network

+1.9%

Mutual funds &
miscellaneous

-11.4%

Life insurance

+1.8%

Other1
Total deposits &
savings

1

ns
+3.2%

As of Q2-13, deposits from financial institutions are presented under the heading “Other”. The figures for previous periods have been restated accordingly

February 19, 2014


54

Caisse d’Epargne network: customer loan outstandings (in €bn)

% change
2013 / 2012
Real-estate loans

+9.8%

Consumer loans and
short-term credit facilities

+4.9%

Equipment loans

+6.5%

Other
Total loans

February 19, 2014


ns
+8.4%

55


Real Estate Financing (*) *
Net banking income
Operating expenses
Cost / income ratio
Cost of risk
Income before tax
Income tax
Minority interests

Q1-12

Q2-12

Q3-12

Q4-12

2012

(*)

Q1-13

Q2-13

Q3-13
208
-134
0
74

Q4-13
199
-147
0
52

2013

211
-142
0
69

199
-130
0
69

190
-145
0
45

208
-169
0
39

808
-586
0
222

183
-136
0
47

187
-129
0
58

777
-546
0
231

67.3%
0.0
-3

65.3%
0.0
-50

76.3%
0.0
-28

81.3%
-51

72.5%
0.0
-132

74.3%
0.0
-33

69.0%
0.0
-32

65
0

27
0

19
0

-6
0

105
0

15
0

28
0

45
0

-88
0

-24

-8

-17

8

-41

-4

-1

-17

24

2

0
0

-1
0

0
0

0
0

-1
0

0
0

-1
0

-1
0

0
0

-2
0

41

18

2

2

63

11

26

27

-64

0

64.4% 73.9% 70.3%
0.0 -31
-154
-250
0
0

Insurance, International & Other networks
Net banking income
Operating expenses

Q1-12

Q2-12

Q3-12

Q4-12

2012

Q1-13

Q2-13

Q3-13

Q4-13

2013

309
-194

298
-185

275
-184

301
-212

1,183
-775

283
-176

317
-199

289
-199

325
-216

1,214
-790

115

113

91

89

408

107

118

90

109

424

62.8%
0.0

62.1%
0.0

66.9%
0.0

70.4%
-

65.5%
0.0

62.2%
0.0

62.8%
0.0

68.9%
0.0

66.5%
-

65.1%
-

Cost of risk

-25

-43

-30

-29

-127

-31

-64

-7

-8

-110

Income before tax

132
0

113
0

97
0

102
0

444
0

116
0

114
0

121
0

147
0

498
0

Income tax

-31

-26

-29

-30

-116

-26

-11

-25

-67

-129

Minority interests

-7
0

-7
0

-11
0

-11
0

-36
0

-7
0

-7
0

-7
0

-12
0

-33
0


94

80

57

61

292

83

96

89

68

336

Cost / income ratio


February 19, 2014


56

Annex – Wholesale Banking, Investment Solutions and SFS

Wholesale Banking

Q3-13



Q3-12

2013

2012

%

2013

2012

%

2013

2012

%

Financial Services
2013

2012

%

Net banking income

2,867

2,836

1.1%

2,259

2,065

9.4%

1,272

1,192

6.7%

6,398

6,093

5.0%

Operating expenses

-1,657

-1,719

-3.6%

-1,662

-1,528

8.8%

-833

-790

5.4%

-4,152

-4,037

2.8%

1,210

1,117

597

537

402

2,056

73.6%

74.0%

65.5%

66.3%

9.2%
-0.8 pt

2,246

60.6%

11.2%
-0.4 pt

439

57.8%

8.3%
-2.8 pts

64.9%

66.3%

9.2%
-1.4 pt

-312

-265

17.7%

12

0

ns

-80

-76

5.3%

-380

-341

11.4%

899

852

5.5%

627

552

13.6%

358

326

9.8%

1,884

1,730

8.9%

Income tax

-323

-306

5.6%

-159

-123

29.3%

-124

-111

11.7%

-606

-540

12.2%

Minority interests

-161

-152

5.9%

-136

-145

-6.2%

-67

-64

4.7%

-364

-361

0.8%

415
0.0

394
0.0

5.3%

332
0.0

284
0.0

16.9%

167
0.0

151
0.0

10.6%

914
0.0

829
0.0

10.3%

Cost / income ratio
Cost of risk
Income before tax


February 19, 2014


57


Q3-13
Q3-12

Wholesale Banking

Q4-13

Q4-12

%

Q4-13

Q4-12


%

Q4-13

Q4-12

%

Financial Services
Q4-13

Q4-12

%

Net banking income

651

684

-4.8%

640

582

10.0%

325

307

5.9%

1,616

1,573

2.7%

Operating expenses

-396

-445

-11.0%

-456

-411

10.9%

-219

-206

6.3%

-1,071

-1,062

0.8%

255

239

6.7%

184

171

7.6%

106

101

5.0%

545

511

6.7%

60.8%

65.1%

-4.2 pts

71.3%

70.6%

0.6 pt

67.4%

67.1%

0.3 pt

66.3%

67.5%

-1.2 pt

Cost of risk

-87

-85

2.4%

14

2

x7

-21

-22

-4.5%

-94

-105

-10.5%

Income before tax

168

154

9.1%

206

176

17.0%

84

79

6.3%

458

409

12.0%

Income tax

-60

-55

9.1%

-52

-40

30.0%

-31

-28

10.7%

-143

-123

16.3%

Minority interests

-30

-28

7.1%

-44

-55

-20.0%

-16

-14

14.3%

-90

-97

-7.2%


78
0.0

71
0.0

9.9%

110
0.0

81
0.0

35.8%

37
0.0

37
0.0

0.0%

225
0.0

189
0.0

19.0%

Cost / income ratio

February 19, 2014


58


Wholesale Banking, Investment Solutions & Specialized Financial Services

Q1-12

Q2-12

Q3-12

Q4-12

2012

Q1-13

Q2-13

Q3-13

Q4-13

2013

Net banking income

1,560

1,510

1,450

1,573

6,093

1,620

1,565

1,597

Operating expenses

-993

-1,003

-979

-1,062

-4,037

-1,025

-1,034

567

507

471

511

2,056

595

531

-1,022
0
575

-1,071 -4,152
0
0
545 2,246

63.7%

66.4%

67.5%

67.5%

66.3%

63.3%

66.1%

64.0%

66.3% 64.9%

Cost of risk

-57

-86

-93

-105

-341

-99

-93

-94

-94

-380

Income before tax

515
0

425
0

381
0

409
0

1,730
0

500
0

442
0

484
0

458
0

1,884
0

Income tax

-167

-126

-124

-123

-540

-165

-137

-161

-143

-606

Minority interests

-101
0

-92
0

-71
0

-97
0

-361
0

-93
0

-87
0

-94
0

-90
0

-364
0

247

207

186

189

829

242

218

229

225

914

Cost / income ratio


February 19, 2014


1,616

6,398

59

Annex – Wholesale Banking

Wholesale Banking

Q1-12

Q2-12

Q3-12

Q4-12

2012

Q1-13

Q2-13

Q3-13

Q4-13

2013

Net banking income

762

702

688

684

2,836

798

679

739

Operating expenses

-431
0
331

-433
0
269

-410
0
278

-445
0
239

-1,719
0
1,117

-432
0
366

-413
0
266

-416
0
323

-396 -1,657
0
0
255 1,210

56.6%
0

61.7%

59.6%

65.1%

60.6%

54.1% 60.8%

56.3%
0

60.8% 57.8%
0
0

Cost of risk

-36

-65

-79

-85

-265

-82

-72

-71

-87

-312

Income before tax

295
0

204
0

199
0

154
0

852
0

284
0

194
0

253
0

168
0

899
0

Cost / income ratio

Income tax

651

2,867

-106

-74

-71

-55

-306

-102

-70

-91

-60

-323

Minority interests

-52
0

-37
0

-35
0

-28
0

-152
0

-50
0

-35
0

-46
0

-30
0

-161
0


137

93

93

71

394

132

89

116

78

415

February 19, 2014


60

Annex – Investment Solutions


Q1-12

Q2-12

Q3-12

Q4-12

2012

Q1-13

Q2-13

Q3-13

Q4-13

2013

Net banking income

511

494

478

582

2,065

513

557

549

640

2,259

Operating expenses

-371
0
140

-372
0
122

-374
0
104

-411
0
171

-1,528
0
537

-388
0
125

-415
0
142

-403
0
146

-456
0
184

-1,662
0
597

72.6%
-

75.3%
-

78.2%
-

70.6%
-

74.0%
-

75.6%
-

74.5%
-

73.4%
-

71.3%
-

73.6%
-

0

-3

1

2

0

1

-1

-2

14

12

Income before tax

145
0

123
0

108
0

176
0

552
0

130
0

145
0

146
0

206
0

627
0

Income tax

-33

-24

-26

-40

-123

-31

-37

-39

-52

-159

Minority interests

-34
0

-36
0

-20
0

-55
0

-145
0

-27
0

-32
0

-33
0

-44
0

-136
0

78

63

62

81

284

72

76

74

110

332

Cost / income ratio
Cost of risk


February 19, 2014


61

Annex – Specialized Financial Services


Q1-12

Q2-12

Q3-12

Q4-12

2012

Q1-13

Q2-13

Q3-13

Q4-13

2013

Net banking income

287

314

284

307

1,192

309

329

309

325

1,272

Operating expenses

-191
0
96

-198
0
116

-195
0
89

-206
0
101

-790
0
402

-205
0
104

-206
0
123

-203
0
106

-219
0
106

-833
0
439

66.6%
-

63.1%
-

68.7%
-

67.1%
-

66.3%
-

66.3%
-

62.6%
-

65.7%
-

67.4%
-

65.5%
-

-21
0

-18
0

-15
0

-22
0

-76
0

-18
0

-20
0

-21
0

-21
0

-80
0

75
0

98
0

74
0

79
0

326
0

86
0

103
0

85
0

84
0

358
0

Income tax

-28

-28

-27

-28

-111

-32

-30

-31

-31

-124

Minority interests

-15
0

-19
0

-16
0

-14
0

-64
0

-16
0

-20
0

-15
0

-16
0

-67
0

32

51

31

37

151

38

53

39

37

167

Cost / income ratio
Cost of risk
Income before tax


February 19, 2014


62

Annex – Equity interests

Equity interests

Q1-12

Q2-12

Q3-12

Q4-12

2012

Q1-13

Q2-13

Q3-13

Q4-13

2013

Net banking income

424

430

412

445

1,711

396

425

382

Operating expenses

-360

-336

-344

-356

-1,396

-343

-345

64
0
-3

94

68

89

315

53

80

-330
0
52
0

-2

-2

2

-5

-1

4

-4

62

95

67

61

285

56

86

47
0

44
0

233
0

Income tax

-22

-34

-25

-57

-138

-23

-36

-22

-25

-106

Minority interests

-17
0

-28
0

-21
0

-15
0

-81
0

-16
0

-23
0

-16
0

-27
0

-82
0

23
0

33
0.0

21
0.0

-11
0.0

66
0

17
0.0

27
0.0

9
0.0

-8
0.0

45
0.0

Cost of risk
Income before tax


February 19, 2014


450

1,653

-377 -1,395
0
0
73
258
0
0
3
2

63

Annex – Workout portfolio management and “Other
businesses” Annual income statement

Workout portfolio
management

2013

2012

Other businesses
2013

2012

Workout portfolio
management & Other
businesses
2013

2012

Net banking income
Operating expenses

189
-89

350
-127

-792
-396

-988
-311

-603
-485

-638
-438


100

223

-1,188

-1,299

-1,088

-1,076

Cost of risk
Income before tax

-71
29

-262
-45

-19
-1,184

-144
-1,699

-90
-1,155

-406
-1,744

Income tax
Minority interests

-14
1

15
9

305
165

492
247

291
166

507
256

16

-21

-714

-960

-698

-981

of the parent

February 19, 2014


64

businesses” Quarterly income statement

Workout portfolio
management
Net banking income
Operating expenses

Other businesses

Q4-13

Q4-13

Q4-12

Q4-12

Workout portfolio
management & Other
businesses
Q4-13

Q4-12

77
-19

159
-25

-250
-211

-424
-87

-173
-230

-265
-112


58

134

-461

-511

-403

-377

Cost of risk
Income before tax

-6
52

-170
-36

-15
-476

-7
-769

-21
-424

-177
-805

-22
-4

12
-5

154
56

178
79

132
52

190
74

26

-29

-266

-512

-240

-541

Income tax
Minority interests
of the parent

February 19, 2014


65

businesses” Quarterly income statement

Workout portfolio management & Other businesses

Q1-12

Q2-12

Q3-12

Q4-12

2012

Q1-13

Q2-13

Q3-13

Q4-13

2013

Net banking income

-308

85

-150

-265

-638

-89

-153

-188

-173

Operating expenses

-88
0
-396
0

-104
0
-19
0

-134
0
-284
0

-112
0
-377
0

-438
0
-1,076
0

-93
0
-182
0

-95
0
-248
0

-67
0
-255
0

-230 -485
0
0
-403 -1,088
0
0

Cost of risk

-103

-66

-60

-177

-406

-32

-9

-28

Income before tax

-506

-83

-350

-805

-1,744

-213

-236

-282

164

9

144

190

507

59

87

13

132

291

94
0

18
0

70
0

74
0

256
0

24
0

30
0

60
0

52
0

166
0

-248

-56

-136

-541

-981

-130

-119

-209

-240

-698

Income tax
Minority interests

February 19, 2014


-21

-603

-90

-424 -1,155

66

Annex – Workout portfolio management


Q1-12

Q2-12

Q3-12

Q4-12

2012

Q1-13

Q2-13

Q3-13

Q4-13

2013

Net banking income

22

71

98

159

350

60

24

28

77

189

Operating expenses

-31
0
-9
0

-41
0
30

-30
0
68

-25
0
134

-127
0
223

-23
0
37

-24
0
0

-23
0
5
0

-19
0
58
0

-89
0
100
0

Cost of risk

-40
0

-31
0

-21
0

-170
0

-262
0

-24
0

-17
0

-24
0

-6
0

-71
0

Income before tax

-49
0

-1

41

-36

-45

13

-17

-19
0

52
0

29
0

Income tax

18

1

-16

12

15

-5

7

6

-22

-14

Minority interests

12
0

8
0

-6
0

-5
0

9
0

-3
0

3
0

5
0

-4
0

1
0

-19

8

19

-29

-21

5

-7

-8

26

16


February 19, 2014


67

Annex – “Other businesses”

Other businesses

Q1-12

Q2-12

Q3-12

Q4-12

2012

Q1-13

Q2-13

Q3-13

Q4-13

2013

Net banking income

-330

14

-248

-424

-988

-149

-177

-216

-250

Operating expenses

-57
0
-387
0

-63
0
-49
0

-104
0
-352
0

-87
0
-511
0

-311
0
-1,299
0

-70
0
-219
0

-71
0
-248
0

-44
0
-260
0

-211
-396
0
0
-461 -1,188
0
0

Cost of risk
Income before tax
Income tax
Minority interests

-15

-792

-63

-35

-39

-7

-144

-8

8

-4

-457
0

-82
0

-391
0

-769
0

-1,699
0

-226
0

-219
0

-263
0

-19

146

8

160

178

492

64

80

7

154

305

82
0

10
0

76
0

79
0

247
0

27
0

27
0

55
0

56
0

165
0

-229

-64

-155

-512

-960

-135

-112

-201

-266

-714

-476 -1,184
0
0

Impact of non-operating items on the attributable net income of the “Other businesses” line:


2013 net income attributable to equity holders of the parent: main items for a total impact of -€265m
>
Revaluation of own debt: –€123m
>
Net impact of the disposal of international assets and covered bond buyback operations: -€91m
>
Prolonged decline in value of the interest in Banca Carige: - €36m
>
Goodwill impairment: - €15m



2012
>
>
>
>

net income attributable to equity holders of the parent: main items for a total impact of -€548m
Goodwill impairment: - €251m
Revaluation of own debt: - €198m
Prolonged decline in value of the interest in Banca Carige: - €190m
Reimbursement of Check Imaging Exchange Penalty: + €91m

February 19, 2014


68

Annex – Risks

Groupe BPCE: non-performing loans and impairment

Dec. 31, 2013


Dec. 31, 2012

Dec. 31, 2011

590,704

586,479

583,062

23,330

21,921

20,255

3.9%

3.7%

3.5%

Impairment recognized1

12,285

11,623

11,182

Impairment recognized / non-performing loans

52.7%

53.0%

55.2%

Cover rate including guarantees related to
impaired outstandings

78.2%

73.7%

75.8%

Gross outstanding customer loans
O/w non-performing loans
Non-performing / gross outstanding loans

1

Including collective impairment

February 19, 2014


69

Annex - Risks

Networks: non-performing loans and impairment
Dec. 31, 2013


Dec. 31, 2012

Dec. 31, 2011

170,601

165,115

160,048

8,500

8,227

7,738

Non-performing/gross outstanding loans

5.0%

5.0%

4.8%


5,066

4,899

4,629

Impairment recognized/non-performing loans

59.6%

59.5%

59.8%


74.9%

73.6%

73.2%


Caisses d’Epargne
Dec. 31, 2013


Dec. 31, 2012

Dec. 31, 2011

203,189

187,266

173,211

4,351

3,814

3,438

Non-performing/gross outstanding loans

2.1%

2.0%

2.0%


2,440

2,250

2,013

Impairment recognized/non-performing loans

56.1%

59.0%

58.6%


76.4%

75.9%

78.1%


1

Including collective impairment

February 19, 2014


70

Annex – Risks

Breakdown of commitments as at December 31, 2013
Breakdown of commitments by
counterparty

Breakdown of commitments to Corporates and
Professionals by industrial sector

€1,003bn

1

of which 12% in France

February 19, 2014


71

Annex - Risks

Geographical breakdown of commitments as at December 31, 2013

Institutions

Sovereigns

February 19, 2014


Corporates

72

Annex – Risks

Detailed exposure as of December 31, 2013
Risk-weighted assets under Basel 3

Guaranteed portfolios (Financial Guarantee & TRS)
Notional
in €bn

Type of asset
(nature of portfolio)

Net Value
in €bn

Discount rate

ABS CDOs

0.7

0.1

80%

Other CDOs

1.3

1.0

23%

RMBS

0.2

0.1

34%

Covered bonds

0.0

0.0

0%

CMBS

0.1

0.1

17%

Other ABS

0.2

0.2

3%

Hedged assets

3.1

2.9

6%

Corporate credit portfolio

3.2

3.2

0%

Total

8.7

7.6

o/w RMBS US agencies

0.0

0.0

Total guaranteed (85%)

8.7

RWA
before guarantee
in €bn

7.6

8.3

Other non-guaranteed portfolios
RWA
Dec. 31, 2013
in €bn

Type of asset
(type of portfolio)

VaR1
Q4-13
in €m

Complex derivatives (credit)2

0.0

0.0

Complex derivatives (rates)

0.3

1.5

Complex derivatives (equities)

0.0

0.0

Fund-linked structured products

0.5

0.1

1

Value at risk

2

Figures as at October 31, 2013

February 19, 2014


73

Annex - Risks

Exposure to the sovereign debts of peripheral European countries
Net direct exposure of credit institutions in the banking portfolio1 (in €m)

Net exposures of insurance companies2 (in €m)

Methodology drawn up by the European Banking Authority (EBA) for the December 2013 transparency exercise; figures at December 31, 2012 have been recalculated using the same methodology –
net direct exposure, excluding derivatives 2 Exposures are net of policyholders’ participation
1

February 19, 2014


74

Annex – Risks

Exposure to European sovereign risks1 (in €m) as at December 31, 2013
based on the model drawn up by the EBA2

EEA 30

Gross direct
exposure at
December 31,
2013

Net direct exposure, excluding derivatives, at
December 31, 2013

Direct sovereign
exposure in
derivatives at
December 31,
2013

Indirect
sovereign
exposure in the
trading book at
December 31,
2013

of which banking
book
Austria
Belgium
Bulgaria
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Iceland
Ireland
Italy
Latvia
Liechtenstein
Lithuania
Luxembourg
Malta
Netherlands
Norway
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
United Kingdom
TOTAL EEA 30

of which trading
book

Net position at
fair values

Net direct exposure, excluding
derivatives, at December 31, 2012

Net position at
fair values

of which banking
book

645
1,976
0
52
48
96
0
34
49,957
4,554
19
105
152
191
10,196
0
0
18
10
0
1,589
0
406
66
0
113
217
1,100
1
0

213
1,651
0
52
48
96
0
29
34,564
-4,844
19
90
152
191
4,147
0
0
18
10
0
941
0
378
66
0
113
217
22
1
0

306
1,102
0
52
48
91
0
0
39,212
109
19
36
0
190
3,579
0
0
0
10
0
556
0
366
55
0
113
217
24
0
0

-93
549
0
0
0
5
0
29
-4,648
-4,953
0
54
152
1
567
0
0
18
0
0
385
0
13
11
0
-1
0
-2
1
0

-59
35
0
0
0
-28
0
-11
-624
818
0
-18
0
0
17
-2
0
-50
0
0
-213
3
0
0
0
0
0
-6
0
0

0
87
0
0
0
0
0
0
-87
0
0
-15
20
0
8
0
0
68
0
0
0
0
-2
0
0
0
0
0
0
0

424
1,348
0
60
93
98
0
-103
32,802
-789
13
54
0
176
4,018
0
0
33
0
0
75
0
492
132
0
247
259
216
0
0

273
1,300
0
60
93
94
0
0
36,206
379
13
44
0
176
3,715
0
0
0
0
0
3
0
494
59
0
247
259
27
0
0

71,547

38,173

46,086

-7,914

-138

80

39,649

43,442

Exposure of the banking activities on a consolidated basis 2 Methodology drawn up by the European Banking Authority (EBA) for the December 2013 transparency exercise; figures at December
31, 2012 have been recalculated using the same methodology – net direct exposure, excluding derivatives
1

February 19, 2014


75

Annex - Risks

Exposure1 to countries subject to a rescue plan (in €bn) at December 31,
2013


Sovereign
debt

Corporates

Total
banking
portfolio
Dec. 31,
2013

Other

Total
banking
portfolio
Dec. 31,
2012

Cyprus

0.1

0.0

0.1

0.2

Greece

0.0

0.3

0.0

0.3

0.3

Portugal

0.0

0.2

1.6

1.8

2.1

Total

1

0.1

0.1

0.5

1.6

2.2

2.6

Exposures calculated according to the methodology defined by the EBA (European Banking Agency) in July 2011 (gross balance sheet and off-balance sheet EAD)

February 19, 2014


76

Annex - Sensitive exposures (excluding Natixis)
Recommendations of the Financial Stability Forum

Foreword


With the exception of the summary provided on the next page,
the following information is based on the scope of consolidation
of Groupe BPCE (excluding Natixis)



For specific details about the sensitive exposures of Natixis,
please refer to the financial presentation dated February 19,
2014 published by Natixis



Contents
>
>
>
>

CDO (Collateralized Debt Obligations)
CMBS (Commercial Mortgage-backed Securities)
RMBS (Residential Mortgage-backed Securities)
Protection acquired

February 19, 2014


77

Annex - Groupe BPCE FSF report at December 31, 2013
Summary of sensitive exposures

Groupe BPCE
(excl. Natixis)

Net exposure
CDOs of ABS (Asset-backed Securities)
US residential market

Total
Sept. 30, 2013

Monolines: residual exposure after value
adjustments
CDPC (Credit Derivative Product Companies):
exposure after value adjustments


91

98

736

1,745

1,955

0
36

192
331

277
463

1,496

Total net exposure
Unhedged exposure

91

192
295

Net exposure
CMBS
RMBS (Spain, US and the UK)

0
1,009

Net exposure
Other at-risk CDOs

February 19, 2014

Total
Dec. 31, 2013

Natixis

863

2,359

2,793

0

295

295

311

0

6

6

56

78

Other CDOs (unhedged)

Net
exposure
Sept. 30,
2013


Change in
value
Q4-13

Other
changes
Q4-13

Net
exposure
Dec. 31,
2013

Gross
exposure
Dec. 31,
2013

Portfolio at fair value through profit or loss

42

5

0

47

84

Portfolio at fair value through shareholders'
equity

52

-1

10

61

69

925

-26

2

901

916

1,019

-22

12

1,009

1,069

Portfolio of loans and receivables
TOTAL

Breakdown of residual exposure
by type of product

February 19, 2014

by rating


79

CMBS

Net
exposure
Sept. 30,
2013


Change in
value
Q4-13

Other
changes
Q4-13

Net
exposure
Dec. 31,
2013

Gross
exposure
Dec. 31,
2013

1

0

0

1

1

35

-4

0

31

31


190

-30

0

160

248

TOTAL

226

-34

0

192

280

Portfolio at fair value through shareholders’
equity

by geographical region

February 19, 2014

by rating


80

RMBS

Net
exposure
Sept. 30,
2013

UK RMBS portfolio

Change in
value
Q4-13

Net
exposure
Dec. 31,
2013

Other
changes
Q4-13

Gross
exposure
Dec. 31,
2013

Portfolio at fair value through
shareholders' equity

TOTAL

Spanish RMBS portfolio


0

0

0

0

146

-3

-7

136

138

10

-1

0

9

9

-4

-7

145

94%

0

156


Breakdown of residual
exposure by rating

147

Net
exposure
Sept. 30,
2013

Change in
value
Q4-13

146

Net
exposure
Dec. 31,
2013

Other
changes
Q4-13

Gross
exposure
Dec. 31,
2013

-1

0

145

0

2

2

6%

Portfolio at fair value through
shareholders' equity

2


3

0

0

3

3

151

-1

0

150

AA and AA-

Breakdown of residual
exposure by rating

161

0

AAA

AA-, A and A-

166

TOTAL



-

56%
44%

BBB + and <

Groupe BPCE (excluding Natixis) does not have any exposure to RMBS in the United States

February 19, 2014


81

Protections acquired

Credit enhancers (monoline)




Protection acquired from credit enhancers by Crédit Foncier for financial assets is in
the form of financial guarantees (and not CDS) and represents a guarantee
attached to the enhanced asset
These enhancement commitments are thus not considered as directly exposed to
monolines

Protections acquired from other counterparties
Gross nominal amount of
the hedged instruments

Impairment of hedged
CDOs

Fair value of the protection

Protection for CDOs (US residential market)
Protection for other CDOs

271

-11

11

TOTAL

271

-11

11




Of which 2 operations corresponding to the Negative Basis Trades strategies
> 2 senior tranches of European CLOs rated AAA/AAA and AAA/AA+ by two rating agencies
> Counterparty risk on two sellers of protection (European banks) covered by
margin calls

February 19, 2014


82

Annex - Groupe BPCE, a socially responsible corporate citizen
Monitoring the Group’s CSR indicators 2013/2012


>
>
>



Financing the local economy: pursuit of financing
activities in all French regions
Supporting the social economy
Key player in local employment: 87% of the Group’s
suppliers are SMEs accounting for 40% of aggregate
procurement in 2013

Groupe BPCE, a major force in recruitment
Real commitment to gender equality
A socially responsible – and socially committed –
purchasing policy

36%

33%

€0.8bn

€0.7bn

3,418

3,992

Number of recruits on work-study contracts

2,285

2,169

37%

36%

350

317

4 banks with
pilot
programs, 3
partnerships
signed

Signature in
October
2012

Eco-loan outstandings of the Caisses
d’Epargne and Banque Populaire banks

€2bn

€2bn

Group entities having completed a carbon
audit

98%

82%

€13.4bn

€13.9bn

€1.4bn

€0.9bn

+ 13,000
microloans
for €91m

+ 12,000
microloans
for €85m

Total amount of loans providing support for
the social economy granted in 2013

Percentage of female managerial staff on
permanent contracts
FTE in disability-friendly companies

Environment
>

Providing funding for energy transition
•

•

>


Sensitive urban areas served by the Group or
close to Banque Populaire or
Caisse d’Epargne branches

At a local level: 1st French bank chosen by the European
Commission to improve the distribution of eco-loans in
liaison with local authorities
Among its customers: eco-loans for individual and
professional customers

Determined steps taken to reduce the Group’s
carbon footprint

Societal action
>

>

Investment in social solidarity: one of the leading
asset managers specializing in SRI and solidaritybased funds in France and Europe
Financing social solidarity: one of the leaders in
solidarity-based employee savings in France and
leading French banking group providing micro-credit
solutions
February 19, 2014

2012

Number of new recruits on permanent
contracts 1

Human Resources
>
>
>



2013

Economy


ELENA-KFW European pilot program designed
to improve the distribution of eco-loans
working in liaison with local authorities

Assets under SRI and solidarity-based
management in France

Solidarity-based employee savings deposits
Number of microloans under management
and their aggregate amount
1

Including work-study contracts

83

February 19, 2014


84

Groupe bpce results q4 13

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