H1-23: Net banking income of €11.3bn, down -7% in line with expectations in light of the new interest rate environment. Very good control of expenses : -1% vs. H1-22. Net income2 : €1.5bn
Q2-23: Net banking income: €5.5 bn, expenses -3% and net income2 of €973m, -18% YoY vs. -29% in Q1-23
Group capital boosted by Q2-23 net income, CET1 equal to 15.2%3 at end-June 2023, +20bps vs. end-March
BUSINESS LINES/ACTIVITIES1
Retail Banking & Insurance: continued development of the Banque Populaire and Caisse d'Epargne retail banking networks in all customer segments, +500,000 new customers since the beginning of January 2023. Net banking income down 9% vs. H1-22 reflecting the rise in the cost of liabilities outpacing growth in the return on assets
- Financing of local and regional France: 5% year-on-year growth in loan outstandings, reaching €713bn at end-June 2023
- Insurance: gross life insurance inflows of €7.8bn in H1-23, premium income up 7% in non-life insurance vs. H1-22
- Financial Solutions & Expertise: Net banking income up +6% vs. H1-22, driven in particular by financing activities
Global Financial Services: revenues up 2% vs. Q2-22, driven by a good performance from Natixis CIB and resilience in Asset Management in what remains a lacklustre business environment for the sector
- Retail Banking: Net banking income up 7% in Q2-23 YoY, driven by diversification and expansion of the customer base. Global Markets revenues up 1% YoY, of which +44% in Equity and -15% in Fixed Income; 8% QoQ growth for Global Finance with continued dynamic development of Trade Finance, +17% in Q2-23 YoY
- Asset & Wealth Management: 5% year-to-date increase in Natixis IM's assets under management, reaching €1,127bn at end-June 2023; net inflows in H1-23 of €4.6bn excluding Ostrum AM; Net banking income down by a contained 5% vs. Q2-22, reflecting in particular the increase in the share of fixed-income assets.
P&L/CAPITAL1
Growth in expenses under tight management, down by 1% in H1-23 and by 3% in Q2-23 YoY
Cost of risk: -22% in H1-23 to €669m, or 16bps, including reversals of provisions for future risks rated Stage 1/Stage 2 and prudent provisioning for Stage 3-rated risks for a limited number of specific cases.
Capital adequacy: CET1 ratio of 15.2%3 at end-June 2023, +20bps vs. end-March 2023 linked to Q2-23-generated net income
Long-term Senior Preferred ratings maintained by Moody's and R&I at A1 and A+, outlook stable
Nicolas Namias, Chairman of the BPCE Management Board, said: "Against a backdrop of weak economic growth and persistently high inflation, the Banque Populaire and Caisse d'Epargne retail banking networks continued to expand in all their different customer segments, attracting 500,000 new customers, while the performance of our global business lines, Natixis CIB in particular, made it possible to diversify our sources of revenues. Our Group remained deeply committed to financing and supporting local and regional France, notably with the announcement of exceptional measures in support of its customers during the most recent periods of social unrest in France.
While the financial results of our two retail banking networks remain impacted by the full effect of the rise interest paid on deposits, which began more than a year ago for regulated savings products, the higher rates of interest charged on loans is now beginning to show its effects. Our Group will consequently benefit from the new interest rate environment as of next year.
We are also continuing to prepare for the future by maintaining a strict control over our costs, which have declined over the quarter, and by pursuing a prudent risk management policy. Our capital adequacy ratios, which are already well above prudential requirements, improved still further in the 2nd quarter with a CET1 ratio of 15.2%.
Finally, with one year to go before the Olympic Games, Groupe BPCE, with all its brands, is accelerating its drive to realize its ambition to be the Bank of Sport in France by contributing actively to the operational success of Paris 2024.”
1 See note on methodology 2 Group share 3 Estimated ratio at end-June 2023
