Paris, August 2, 2023
Results for the 2nd quarter and 1st half of 2023
Commercial dynamics, good cost control and capital creation;
Net income2 in line with expectations in the current interest rate environment
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
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.
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
The half-yearly financial statements of Groupe BPCE for the period ended June 30, 2023, approved by the Management Board at
a meeting convened on August 2, 2023, were verified and reviewed by the Supervisory Board, chaired by Thierry Cahn, at a
meeting convened on August 2, 2023.
In this document, 2022 figures have been restated on a pro-forma basis to take account of the application to insurance of the new IFRS 17 and 9 reporting requirements (see annex for the reconciliation of reported data to pro-forma data).
Groupe BPCE
1 Reported figures
2 “Underlying” means exclusive of exceptional items
3 The cost/income ratio of Groupe BPCE is calculated on the basis of net banking income and operating expenses excluding exceptional items, the latter being restated to account for the contribution to the Single Resolution Fund (SRF) booked in the Corporate center division. The calculations are detailed in the annex on pages 27 and 28.
| €m | Q2-23 | Q2-22 | % Change vs. Q2-22 | H1-23 | H1-22 | % Change vs. H1-22 | ||
| Net banking income | 5,467 | 6,032 | (9)% | 11,281 | 12,181 | (7)% | ||
| Operating expenses | (3,799) | (3,904) | (3)% | (8,386) | (8,490) | (1)% | ||
| o/w operating expenses excluding SRF contribution | (7,930) | (7,894) | 0% | |||||
| Gross operating income | 1,667 | 2,128 | (22)% | 2,895 | 3,692 | (22)% | ||
| Cost of risk | (342) | (445) | (23)% | (669) | (856) | (22)% | ||
| Income before tax | 1,337 | 1,693 | (21)% | 2,305 | 2,899 | (20)% | ||
| Income tax | (353) | (487) | (28)% | (777) | (921) | (16)% | ||
| Non-controlling interests | (12) | (23) | (47)% | (22) | (40) | (47)% | ||
| Net income – Group share | 973 | 1,182 | (18)% | 1,506 | 1,937 | (22)% | ||
| Exceptional items | 55 | (32) | ns | 18 | (49) | ns | ||
| Underlying net income – Group share | 918 | 1,214 | (24)% | 1,488 | 1,987 | (25)% | ||
| Cost to income ratio (underlying excl. SRF) | 72.1% | 63.9% | 8.3pp | 69.9% | 63.8% | 6.2pp |
1. Groupe BPCE
Unless specified to the contrary, the financial data and related comments refer to the reported results of the Group and business lines, changes express differences between Q2-23 and Q2-23 and between H1-23 and H1-22.
Groupe BPCE recorded a 9% decline in net banking income to 5,467 million euros in Q2-23 and a 7% drop to 11,281 million euros in H1-23 due, as anticipated, to the faster transmission of higher interest rates on regulated savings to the overall cost of customer deposits, while asset repricing is gradually bearing fruit.
Revenues from the Retail Banking & Insurance business unit (RB&I) stood at 3,665 million euros (-11%) in Q2-23 and at 7,546 million euros (-9%) in the first 6 months of 2023. Despite strong sales momentum enjoyed by the Banques Populaires and Caisses d'Epargne in H1-23, the net banking income generated by the retail banking networks was down 14%. The Financial Solutions & Expertise business unit saw 6% revenue growth in H1-2023, driven by financing activities. The Insurance business benefited from the very good momentum in Life Insurance and Personal Protection Insurance, although its revenues reflect a certain volatility triggered by the application of the new IFRS 17 and 93 reporting requirements.
The Global Financial Services business unit reported a 2% increase in revenues in Q2-23 and H1-23, to 1,798 million euros and 3,620 million euros respectively. In H1-23, this increase can mainly be attributed to a 7% rise in the net banking income posted by the Corporate & Investment Banking business, buoyed up by an effective diversification strategy. The net banking income posted by Asset & Wealth Management was down 4% owing to lower management fees as a result of the 10% year-on-year drop in average assets under management at constant foreign exchange rates.
Commissions held steady at the good level of 5 billion euros in H1-23.
Against a backdrop of high inflation, operating expenses were kept under tight management in all business lines. They fell by 3% in Q2-23 to 3,799 million euros and declined by 1% in H1-23 to 8,386 million euros and, if contributions to the SRF (down by 23%) are excluded, they remain stable at 7,930 million euros.
The underlying cost/income ratio (excluding exceptional items and excluding contributions to the SRF1) came to 72.1% in Q2-23, up 8.3pp, and stood at 69.9% in H1-23, up 6.2pp.
Gross operating income fell by 22% in Q2-23 and H1-23, to 1,667 million euros and 2,895 million euros respectively.
Groupe BPCE's cost of risk was down 23% in Q2-23 to 342 million euros, and down 22% in H1-23 to 669 million euros. This decrease, as anticipated, is chiefly due to the reversal of provisions on outstandings rated 'Stage 1' and ‘Stage 2’.
For Groupe BPCE, the quarterly amount of provisions for performing loans rated 'Stage 1' or 'Stage 2' corresponds to a reversal of 229 million euros in Q2-23 vs. 199 million euros in Q2-22. Half-yearly provisions for performing loans rated as Stage 1 or Stage 2 correspond to a reversal of 159 million euros in H1-23 vs. a provision of 339 million euros in H1-22.
Provisions for proven risks rated 'Stage 3' amounted to 571 million euros in Q2-23, up on the figure reported in Q1-22 (246 million euros), and reached 828 million euros in H1-23 vs. 518 million euros in H1-22.
Provisions for loan outstandings rated 'Stage 3' increased by 310 million euros compared with H2-2022 owing to the prudent provisioning of a limited number of specific cases.
In Q2-23, the cost of risk came to 16bps in relation to gross customer outstandings for Groupe BPCE (22bps in Q2-22). It includes a reversal of 11bps in Q2-23 (vs. an allocation to provisions of 10bps in Q2-22) rated 'Stage 1' or 'Stage 2' and the provisioning of loans with a proven risk of 27bps in Q2-23 (vs. an allocation to provisions of 12bps in Q2-22) rated 'Stage 3'.
The cost of risk came to 14bps for the Retail Banking & Insurance business unit (22bps in Q2-22), including a reversal of 10bps for the provisioning of performing loans (vs. an allocation to provisions of 10bps in Q2-22) rated 'Stage 1' or 'Stage 2' and 24bps for the provisioning of loans with a proven risk (vs. an allocation to provisions of 13bps in Q2-22) rated 'Stage 3'.
The cost of risk of Corporate & Investment Banking in Q2-23 stood at 54bps (44bps in Q12-22), including a reversal of 26bps related to the provisioning of performing loans (vs. vs. an allocation to provisions of 27bps in Q2-22) rated 'Stage 1' or 'Stage 2' and an allocation to provisions of 80bps related to the provisioning of loans with a proven risk (vs.17bps in Q2-22) rated in 'Stage 3'.
In H1-23, the cost of risk was also 16bps for gross customer loans for Groupe BPCE (21bps in H1-22), including a reversal of 4bps in H1-23 (vs. an allocation to provisions of 8bps in H1-22) rated 'Stage 1' or 'Stage 2' and the provisioning of loans with a proven risk of 20bps in H1-23 (vs. an allocation to provisions of 13bps in H1-22) rated 'Stage 3'.
The cost of risk was 16bps for the Retail Banking & Insurance business unit (21bps in H1-22), including reversal of4bps for the provisioning of performing loans (vs. an allocation to provisions of 9bps in H1-22) rated 'Stage 1' or 'Stage 2' and provisions of 20bps for the provisioning of loans with a proven risk (vs an allocation to provisions of 12bps in H1-22) rated in 'Stage 3'.
The cost of risk came to 20bps for Corporate & Investment Banking in H1-23 (50bps in H1-22), including reversals of 13bps for the provisioning of performing loans (vs. an allocation to provisions of 15bps in H1-22) rated 'Stage 1' or 'Stage 2' and 34bps for the provisioning of loans with a proven risk rated 'Stage 3', stable compared with H1-22.
The ratio of non-performing loans to gross loan outstandings stood at 2.4% at June 30, 2023, +0.1 pp on end-2022.
Reported net income (Group share) in Q2-23 came to 973 million euros, down 18% (1,182 million euros in Q2-22), and in H1-23 stood at 1,506 million euros vs. 1,937 million euros in H1-22 (-22%).
The impact of exceptional items on net income (Group share) was 55 million euros in Q2-23 vs. -32 million euros in Q2-22, and 18 million euros with no significant impact on net income (Group share) in H1-23 vs. -49 million euros in H1-22.
Underlying net income (Group share) came to 918 million euros in Q2-23, down 24% compared with Q2-22 (1,214 million euros) and 1,488 million euros in H1-23 (-25%).
1 The cost/income ratio of Groupe BPCE is calculated on the basis of net banking income and operating expenses excluding exceptional items, the latter being restated to account for the contribution to the Single Resolution Fund (SRF) booked in the Corporate center division. The calculations are detailed in the annex on pages 27 and 28.
2. 2. Capital, loss-absorbing capacity, liquidity and funding
2.1 CET11 ratio
Groupe BPCE's CET11 ratio at the end of June 2023 reached an estimated level of 15.2%1, compared with 15.0% at end-March 2023. The quarterly change can be explained by the following impacts:
- Retained earnings: +20bps,
- Change in risk-weighted assets: +6bps,
- Net issuance of cooperative shares: +5bps
- Irrevocable payment undertakings, changes in Other Comprehensive Income, and the prudential backstop: -4bps,
- Other items : -3bps.
At the end of June 2023, Groupe BPCE held a buffer estimated at 17.4 billion euros above the threshold for triggering the maximum distributable amount (MDA) for equity capital, taking account of the prudential requirements laid down by the ECB applicable at June 30, 2023.
2.2 TLAC2 ratio
The estimated Total Loss-Absorbing Capacity (TLAC) stood at 114.6 billion euros1 at the end of June 2023. The TLAC ratio, expressed as a percentage of risk-weighted assets, stood at an estimated 24.9%1,3 at the end of June 2023 (without taking account of preferred senior debt for the calculation of this ratio), well above the Financial Stability Board requirements currently equal to 21.95%4.
2.3 MREL2 ratio
Expressed as a percentage of risk-weighted assets at June 30, 2023, Groupe BPCE's subordinated MREL ratio3 (without taking account of preferred senior debt for the calculation of this ratio) and total MREL ratio stood at 24.9%1,3 and 32.5%1 respectively, well above the minimum requirements set by the SRB in 2023 of 21.95%4 and 25.46%4 respectively.
2.4 Leverage ratio
At June 30, 2023, the estimated leverage ratio stood at 5.0%1, well above the leverage ratio requirement at that same date.
2.5 Liquidity reserves at a high level
The Liquidity Coverage Ratio (LCR) for Groupe BPCE is well above the regulatory requirement of 100%, standing at 144% based on the average of end-of-month LCRs in the 2nd quarter of 2023.
The volume of liquidity reserves came to 276 billion euros at the end of June 2023, representing a coverage ratio of 147% of short-term financial debts (including short-term maturities of medium-/long-term financial debt).
2.6 MLT funding plan: 86% of the 2023 plan already raised as at July 13, 2023
Reminder: the size of the MLT funding plan for 2023, excluding structured private placements and ABS, has been set at 29 billion euros and the breakdown by type of debt is as follows:
- 10 billion euros in TLAC funding: 2 billion euros in Tier 2 and 8 billion euros in senior non-preferred debt,
- 7 billion euros in senior preferred debt,
- 12 billion euros in covered bonds.
The target for ABS is 1.7 billion euros.
As atJuly 13, 2023, Groupe BPCE had raised 24.9 billion euros, excluding structured private placements and ABS (86% of the 29 billion-euro plan):
- 8.4 billion euros in TLAC funding, i.e. 84% of requirements: 2 billion euros in Tier 2 (100% of requirements) and 6.4 billion euros in senior non-preferred debt (80% of requirements),
- 5.1 billion euros in senior preferred debt (73% of requirements),
- 11.4 billion euros in covered bonds (95% of requirements).
The amounts of ABS raised stood at 1.55 billion euros as at July 13, 2023, representing 91% of the target.
Outstanding TLTRO III amounted to 25.7 billion euros as at June 30, 2023, whose redemption at maturity is fully integrated in our wholesale MLT funding plans.
2.7 Innovation, diversification & financial strength
In H1-2023, Groupe BPCE proposed a number of innovative transactions responding to investor priorities and issued landmark bonds contributing to the diversification of the investor base, it also received confirmation of its credit ratings.
- Groupe BPCE, a premium partner of the Olympic & Paralympic Games Paris 2024, confirms its front-ranking position in the sports economy and issued senior preferred social bonds (Sports Economy and Health) for a total of 500 million euros. This is the first social bond issue in France dedicated exclusively to the “Health and Sports Economy” theme, in line with the United Nations' Sustainable Development Goal No. 3.
- Groupe BPCE completed 2 social and green issues:
- 500 million euros in Tier 2 social bonds (local economic development),
- 750 million euros in covered green bonds (Green Buildings),
- Groupe BPCE has issued so-called "Samurai" senior preferred and senior non-preferred bonds for a total of 197.7 billion yen, or approximately 1.3 billion euros. This is the largest JPY-denominated issue since the creation of BPCE, and also the largest JPY issue by a non-Japanese issuer since the beginning of 2023.
- Finally, the Group's long-term senior preferred debt ratings have been confirmed at A1/outlook stable by Moody's and A+/outlook stable by R&I.
Capital adequacy, Total loss-absorbing capacity – see note on methodology
1 Estimated at June 30, 2023
2 ECB requirements at January 1, 2023 excluding Pillar2 Guidance with a countercyclical buffer rate of 0.45% as at June 30, 2023.
3 Groupe BPCE has chosen to waive the possibility offered by Article 72b (3) of the Capital Requirements Regulation to use senior preferred debt for compliance with its TLAC/subordinated MREL requirements
4 Requirements as at June 30, 2023
3. Groupe BPCE, premium partner of the Olympic and Paralympic Games Paris 2024
With one year to go before the Olympic & Paralympic Games Paris 2024, Groupe BPCE and its companies are fully mobilized to help ensure the success of this historic event:
Becoming the Bank of Sport was an obvious choice for Groupe BPCE and its companies, an ambition reflected in a long-standing commitment to sport and in its partnership with Päris 2024 since 2018.
Groupe BPCE is supporting the operational success of Paris 2024, throughout France, thanks to its expertise in infrastructure financing, banking services and payment solutions, through the exceptional commitment of its employees and customers, and by supporting the largest group of athletes in France.
The Group ensures the development of the sports ecosystem by being the No.1 private financier of sports infrastructures in France, by contributing to the renovation of facilities, and by being a key player in the financing of sports companies.
4. Results of the business lines
Unless specified to the contrary, the financial data and related comments refer to the reported results of the business lines, changes express differences between Q2-23 and Q2-22 and between H1-23 and H1-22.
- Retail Banking & Insurance
| €m(1) | Q2-23 | % Change | H1-23 | % Change | |
| Net banking income | 3,655 | (11)% | 7,546 | (9)% | |
| Operating expenses | (2,459) | (1)% | (4,955) | 0% | |
| Gross operating income | 1,196 | (27)% | 2,590 | (23)% | |
| Cost of risk | (252) | (33)% | (560) | (21)% | |
| Income before tax | 952 | (24)% | 2,058 | (22)% | |
| Exceptional items | 51 | ns | 21 | ns | |
| Underlying income before tax | 901 | (29)% | 2,038 | (25)% | |
| Underlying cost/income ratio | 68.0% | 8.3pp | 65.6% | 6.6pp |
Loan outstandings grew by 5% year-on-year, reaching 713 billion euros at the end of June 2023, including a 6% increase in housing loans to 399 billion euros, a 6% increase in equipment loans to 189 billion euros, and a 7% increase in consumer loans to 40 billion euros.
At the end of June 2023, on-balance sheet customer deposits & savings stood at 659 billion euros, an increase of 12 billion euros year-on-year, with a sharp 45% rise in term accounts and a 4% increase in regulated savings.
Net banking income for the Retail Banking & Insurance business unit fell by 11% to 3,665 million euros in Q2-23, and by 9% to 7,546 million euros in H1-23. These changes include a decline of 14% for the Banque Populaire retail banking network in Q2-23 and of 12% in H1-23, and a decline of 18% for the Caisse d'Épargne network in Q2-23 and of 15% in H1-23.
The Financial Solutions & Expertise business lines continued to benefit from strong sales momentum, with revenues up 5% in Q2-23 and up 6% in H1-23. In the Insurance business, revenues rose sharply in both Q2-23 and H1-23, driven by buoyant business in life insurance and personal protection insurance, reflecting the volatility generated by the application of the new IFRS 17 and 9 reporting requirements to insurance activities The Digital & Payments business unit was impacted by higher refinancing costs, with revenues down 2% on a like-for-like basis in Q2-23 and H1-23.
Against a backdrop of high inflation, operating expenses were kept under tight management, falling slightly by 1% in Q2-23 to 2,459 million euros, and remaining stable in H1-23 at 4,955 million euros.
The underlying cost/income ratio2 rose by 8.3pp in Q2-23 to 68.0%, and by 6.6pp in H1-23 to 65.6%.
Owing to a negative jaws effect, the gross operating income generated by the business unit fell by 27% in Q2-23 to 1,196 million euros, and by 23% in H1-23 to 2,590 million euros.
The cost of risk fell by 33% to 252 million euros in Q2-23, and by 21% to 560 million euros in H1-23.
For the business unit as a whole, income before tax amounted to 952 million euros in Q2-23, down 24%, and to 2,058 million euros in H1-23, down 22%.
Underlying income before tax totaled 901 million euros in Q2-23, down 29%, and 2,038 million euros in H1-23, down 25%.
1 Reported figures
2 ”Underlying” means exclusive of exceptional items
3 The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses
1.1.1 Banque Populaire retail banking network
The Banque Populaire network is comprised of 14 cooperative banks (12 regional Banques Populaires along with CASDEN Banque Populaire and Crédit Coopératif) and their subsidiaries, Crédit Maritime Mutuel, and the Mutual Guarantee Companies.
| €m(2) | Q2-23 | % Change | H1-23 | % Change | |
| Net banking income | 1,460 | (14)% | 3,017 | (12)% | |
| Operating expenses | (1,015) | 4% | (2,033) | 3% | |
| Gross operating income | 445 | (39)% | 984 | (32)% | |
| Cost of risk | (110) | (45)% | (242) | (32)% | |
| Income before tax | 345 | (35)% | 768 | (30)% | |
| Exceptional items | 28 | ns | 15 | ns | |
| Underlying income before tax | 318 | (42)% | 753 | (33)% | |
| Underlying cost/income ratio | 70.7% | 14.3pp | 67.5% | 10.4pp |
Loan outstandings increased by 5% year-on-year to 303 billion euros at the end of June 2023.
On-balance sheet customer deposits & savings increased by 8 billion euros year-on-year to 281 billion euros at the end of June 2023, with strong growth in term accounts (+62% year-on-year) and an increase in regulated savings (+5% year-on-year).
Net banking income came to 1,460 million euros, down 14% in Q2-23 year-on-year.
In H1-23, net banking income totaled 3,017 million euros, down 12%, including:
- A 24% fall in the net interest margin4,5 to 1,576 million euros owing to the significant increase in the cost of customer savings (regulated savings, in particular) offset by the positive effect of asset repricing,
- and a 5% rise in commissions4 to 1,416 million euros.
Operating expenses, kept under tight management, rose by 4% in Q2-23 to 1,015 million euros, and by 3% in H1-23 to 2,033 million euros.
As a result, the underlying cost/income ratio3 deteriorated by 14.3pp to 70.7% in Q2-23 and by 10.4pp to 67.5% in H1-23.
Gross operating income fell by 39% to 445 million euros in Q2-23 and by 32% to 984 million euros in H1-23.
The cost of risk came to 110 million euros in Q2-23 (-45%) and 242 million euros in H1-23 (-32%).
Income before tax stood at 345 million euros in Q2-23 (-35%) and at 768 million euros in H1-23 (-30%).
Underlying income before tax2 came to 318 million euros in Q2-23 (-42%) and to 753 million euros in H1-23 (-33%).
1 Reported figures
2 “Underlying” means exclusive of exceptional items
3 The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses
4 Excluding provisions for home-purchase savings schemes)
5 Income on regulated savings has been restated to account for the net interest margin and included under commissions
1.1.2 Caisse d’Epargne retail banking network
The Caisse d’Epargne network comprises 15 individual Caisses d’Epargne along with their subsidiaries.
| €m(2) | Q2-23 | % Change | H1-23 | % Change | |
| Net banking income | 1,462 | (18)% | 2,998 | (15)% | |
| Operating expenses | (1,041) | (4)% | (2,106) | (2)% | |
| Gross operating income | 422 | (40)% | 892 | (36)% | |
| Cost of risk | (84) | (27)% | (220) | (10)% | |
| Income before tax | 338 | (43)% | 672 | (42)% | |
| Exceptional items | 35 | ns | 24 | ns | |
| Underlying income before tax | 302 | (49)% | 647 | (45)% | |
| Underlying cost/income ratio | 72.7% | 12.7pp | 70.6% | 10.5pp |
Loan outstandings rose by 5% year-on-year to 367 billion euros at end-June 2023.
On-balance sheet customer deposits & savings fell by 3 billion euros year-on-year to 365 billion euros at the end of June 2023, with strong growth in term accounts (+29% year-on-year) and an increase in regulated savings (+4% year-on-year).
In Q2-23, net banking income came to 1,462 million euros, down 18%.
In H1-23, net banking income fell by 15% to 2,998 million euros, including :
- A 34% drop in net interest margin4,5 to 1,376 million euros, owing to the sharp rise in the cost of savings, which outpaced asset repricing.
- A 2% rise in commissions4 to 1,569 million euros.
Operating expenses remained under tight control, falling by 4% in Q2-23 to 1,041 million euros, and by 2% in H1-23 to 2,106 million euros.
The underlying cost/income ratio3 increased by 12.7pp to 72.7% in Q2-23 and by 10.5pp to 70.6% in S1-23.
Gross operating income fell by 40% to 422 million euros in Q2-23 and by 36% to 892 million euros in H1-23.
The cost of risk came to 84 million euros in Q2-23, down 27%, and stood at 220 million euros in H1-23, down 10%.
Income before tax came to a total of 338 million euros in Q2-23 (-43%) and 672 million euros in H1-23 (-42%).
Underlying income before tax2 stood at 302 million euros in Q2-23 (-49%) and 647 million euros in H1-23 (-45%).
1 Reported figures
2 “Underlying” means exclusive of exceptional items
3 The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses
4 Excluding provisions for home-purchase savings schemes)
5 Income on regulated savings has been restated to account for the net interest margin and included under commissions
1.1.3 Financial Solutions & Expertise
| €m(1) | Q2-23 | % Change | H1-23 | % Change | |
| Net banking income | 306 | 5% | 621 | 6% | |
| Operating expenses | (151) | 3% | (309) | 4% | |
| Gross operating income | 155 | 7% | 313 | 7% | |
| Cost of risk | (19) | 30% | (26) | (8)% | |
| Income before tax | 136 | 5% | 287 | 9% | |
| Exceptional items | (1) | ns | (2) | ns | |
| Underlying income before tax | 137 | 4% | 289 | 8% | |
| Underlying cost/income ratio | 49.1% | (0.8)pp | 49.4% | (0.3)pp |
In Consumer Credit, loan outstandings (personal loans and revolving credit) grew by a strong 9% year-on-year to the end of June 2023.
Factoring enjoyed very good momentum with strong growth in factored sales (+9% year-on-year) and an increase in average outstandings financed (+17% year-on-year).
In Leasing, new business rose sharply (+11% year-on-year) driven by business with the retail banking networks (+10%) and the integration of Eurolocatique, the new healthcare equipment financing subsidiary.
In the Sureties & Financial Guarantees business line, gross premiums written were down 14% year-on-year, reflecting the marked slowdown in the real estate market.
In the Retail Securities Services business, stock market and mutual fund flows were down 7% year-on-year.
Net banking income generated by the Financial Solutions & Expertise business unit rose by 5% to 306 million euros in Q2-23, and by 6% to 621 million euros in H1-23, driven by the strong performance of the financing businesses.
Operating expenses remained well under control, with growth limited to 3% in Q2-23 to 151 million euros and 4% in H1-23 to 309 million euros, thereby creating a positive jaws effect.
The underlying cost/income ratio3 fell by a marginal 0.8pp in Q2-23 to 49.1%, and by an extremely marginal 0.3pp in H1-23 to 49.4%.
Gross operating income rose by 7% in Q2-23 and H1-23 to stand at 155 million euros and 313 million euros respectively.
The cost of risk rose by 30% in Q2-23 to 19 million euros (although this should be put into perspective as, in absolute terms, it represents an increase of only 5 million euros) but fell in H1-23 by 8% to 26 million euros.
Income before tax came to 136 million euros in Q2-23, up 5%, and to 287 million euros in H1-23, up 9%.
Underlying income before tax2 stood at 137 million euros in Q2-23, up 4%, and at 289 million euros in H1-23, up 8%.
1 Reported figures
2 “Underlying” means exclusive of exceptional items
3 The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses
1.1.4 Insurance1
The results presented below concern the Insurance business unit held directly by BPCE since March 1, 2022.
| €m(3) | Q2-23 | % Change | H1-23 | % Change | |
| Net banking income | 126 | ns | 306 | x2.4 | |
| Operating expenses(4) | (37) | (9)% | (80) | 4% | |
| Gross operating income | 89 | ns | 226 | x5 | |
| Income before tax | 93 | ns | 231 | x5 | |
| Exceptional items | (2) | 8% | (3) | (21)% | |
| Underlying income before tax | 94 | ns | 235 | x5 | |
| Underlying cost/income ratio | 28.2% | ns | 25.2% | ns |
In Q2-23, premiums6 rose 57% to 5.5 billion euros with increases of 66% for Life Insurance & Personal Protection insurance and 4% for Property & Casualty insurance, and in H1-23 premiums enjoyed 24% growth to 9.5 billion euros with increases of 27% for Life Insurance & Personal Protection insurance and 7% for Property & Casualty insurance.
Life insurance assets under management6 reached a total of 89.6 billion euros at the end of June 2023. Since the end of December 2022, they have grown by 7%, with significant positive inflows of new life funds. Aggregate gross inflows amounted to 7.8 billion euros in H1-23.
Unit-linked funds accounted for 32% of assets under management at end-June 2023, up 4pp vs. end-June 2022, and represented 52% of gross inflows in H1-23, up 13pp vs. H1-22.
In Property & Casualty insurance and Personal Protection insurance, the customer equipment ratio for the two retail banking networks reached 33.9%7 at end-May 2023 (+0.8pp since end-December 2022).
The P&C combined ratio reached 95.5% in H1-23 (+0.5pp year-on-year).
The financial environment in H1-23 compared with H1-22 had a favorable impact on the life insurance financial margin, in line with IFRS 17.
Net banking income rose sharply in Q2-23 and H1-23 to respectively 126 million euros and 306 million euros, up sharply thanks to more favorable macroeconomic conditions than in H1-22, and reflecting the volatility caused by the application of the new IFRS 17 and 9 reporting requirements to the insurance business.
Operating expenses fell by 9% in Q2-23 to 37 million euros, and rose by 4% in H1-23 to 80 million euros.
The underlying cost/income ratio5 stood at 28.2% in Q2-23 and at 25.2% in H1-23.
Gross operating income rose sharply in both Q2-23 and H1-23, to 89 million euros in Q2-23 and 226 million euros in H1-23 respectively.
Income before tax also enjoyed rapid growth, increasing to 93 million euros in Q2-23 and to 231 million euros in H1-23.
Underlying income before tax4 rose sharply to 94 million euros in Q2-23 and to 235 million euros in H1-23.
1 BPCE Assurances
2 Reported figures
3 “Operating expenses” corresponds to “non-attributable expenses” under IFRS 17, i.e. all costs that are not directly attributable to insurance contracts
4 “Underlying” means exclusive of exceptional items
5 The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses
6 Excluding the reinsurance treaty with CNP Assurances
7 Scope: combined individual customers of the BP and CE networks
3.1.5 Digital & Payments
The results presented below concern the Payments activity held directly by BPCE since March 1, 2022 and those of Oney Bank.
| €m(1) | Q2-23 | % Change at constant scope(2) | H1-23 | % Change at constant scope(2) | |
| Net banking income | 203 | (2)% | 408 | (2)% | |
| Operating expenses | (163) | 4% | (324) | 3% | |
| Gross operating income | 40 | (22)% | 84 | (15)% | |
| Cost of risk | (41) | 35% | (73) | 23% | |
| Income before tax | (6) | ns | 2 | ns | |
| Exceptional items | (11) | ns | (15) | ns | |
| Underlying income before tax | 4 | (81)% | 17 | (62)% | |
| Underlying cost/income ratio | 75.4% | (1.3)pp | 76.0% | (1.1)pp |
Digital
At the end of June 2023, 10.8 million customers were active on mobile applications (up 9% vs. end-June 2022), out of a total of 13.1 million active digital customers (up 4% vs. end-June 2022).
These applications record an average of 55 million visits per week, up 10% vs. December 2022.
The number of professional customers using Banque Populaire and Caisse d'Epargne mobile applications is increasing.
At the end of June 2023, these applications scored 4.7 out of 5 on the App Store and 4.6 out of 5 on Google Play.
Payments
Payment Solutions enjoyed a dynamic business environment with 9% growth in the number of card transactions in H1-23 and steady growth in mobile and instant payments (1.9 times vs. H1-2022). The adoption of Android-type payment terminals has accelerated in the Banque Populaire and Caisse d'Epargne retail banking networks, with a 5-fold increase since H1-22.
Payplug recorded strong growth in business volumes for intermediate-sized enterprises and large corporations (+22% vs. H1-22) as well as for small & medium-sized businesses (+28% vs. H1-22).
Oney Bank
Net banking income experienced a limited decline compared with H1-22, depressed by higher interest rates partially offset by dynamic business activities and the pursuit of the repricing strategy.
In BtoBtoC, new loans rose by 9% compared with H1-22, driven by "Buy Now Pay Later" (BNPL) activities, a business area where Oney Bank remains No.1 in terms of market share in France.
BtoC loan production was down vs. H1-2022 (personal loans in particular) due to the tightening of lending criteria, in line with the market.
A transformation plan is currently underway, with cost-cutting measures enabling YOY operating expenses to be trimmed by 7%.
Net banking income for the Digital & Payments business unit fell by 2% on a like-for-like basis2 in Q2-23 and H1-23, to 203 million euros and 408 million euros respectively.
The business unit’s operating expenses came to 163 million euros in Q2-23, up 4% on a like-for-like basis2, and to 324 million euros in H1-23, up 3% on a like-for-like basis2.
The underlying cost/income ratio4 improved by 1.3pp on a like-for-like basis2 to 75.4% in Q2-23, and by 1.1pp on a like-for-like basis2 to 76.0% in H1-23.
Gross operating income fell by 22% on a like-for-like basis2 in Q2-23 to 40 million euros, and by 15% on a like-for-like basis2 to 84 million euros in H1-23.
The cost of risk increased by 35% on a like-for-like basis2 in Q2-23 to 41 million euros, and by 23% on a like-for-like basis2 in H1-23 to 73 million euros.
Income before tax fell sharply to -6 million euros in Q2-23 and +2 million in H1-23.
Underlying income before tax3 was 4 million euros in Q2-23, down 81% on a like-for-like basis2, and 17 million euros in H1-23, down 62% on a like-for-like basis2.
1 Reported figures
2 Excluding Bimpli, acquired by Swile in December 2022 (constant basis of structure).
3 “Underlying” means exclusive of exceptional items
4 The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses
3.2 Global Financial Services
The GFS business unit includes the Asset & Wealth Management activities and the Corporate & Investment Banking activities of Natixis.
| €m(1) | Q2-23 | % Change | Constant Fx % change | H1-23 | % Change | Constant Fx % change | |
| Net banking income | 1,798 | 2% | 3% | 3,620 | 2% | 1% | |
| o/w AWM | 776 | (5)% | (3)% | 1,560 | (4)% | (5)% | |
| o/w CIB | 1,022 | 7% | 8% | 2,060 | 7% | 7% | |
| Operating expenses | (1,282) | 2% | 3% | (2,585) | 2% | 2% | |
| o/w AWM | (634) | (2)% | (1)% | (1,276) | (1)% | (2)% | |
| o/w CIB | (647) | 7% | 9% | (1,309) | 6% | 6% | |
| Gross operating income | 517 | 0% | 1% | 1,035 | 1% | 0% | |
| Cost of risk | (91) | 8% | (64) | (62)% | |||
| Income before tax | 429 | (2)% | 1,019 | 16% | |||
| Exceptional items | (4) | (39)% | (14) | ns | |||
| Underlying income before tax | 433 | (2)% | 1,033 | 18% | |||
| Underlying cost/income ratio | 71.1% | 0.7pp | 71.0% | 0.2pp |
GFS revenues rose by 2% in Q2-23 and H1-23, to €1,798 million (+3% at constant exchange rates) and €3,620 million (+1% at constant exchange rates) respectively. These trends can be explained by our diversified business model and strong sales activity, despite the sluggish economic environment.
In H1-23, Asset & Wealth Management revenues fell by 4% year-on-year owing to the decline in the overall fee rate (excluding insurance management) compared with H1-22, mainly due to the increase in the share of fixed-income products in the product mix.
Corporate & Investment Banking revenues rose by 7% in H1-23 to €2.1 billion thanks to diversification and the strong performance achieved by the Equity (+10% YoY), Global trade and M&A boutique businesses (+19% YoY).
Operating expenses rose by 2% in Q2-23 and H1-23, to 1,282 million euros (+3% at constant exchange rates) and 2,585 million euros (+2% at constant exchange rates) respectively.
In H1-23, the operating expenses of the Asset & Wealth Management business fell by 1% year-on-year thanks to the ongoing cost-cutting plan, while the expenses incurred by the Corporate & Investment Banking business rose by 6% (against a backdrop of inflation and capital expenditure) in line with the growth in revenue.
The underlying cost/income ratio3 increased by 0.7pp to 71.1% in Q2-23, and by 0.2pp to 71.0% in H1-23.
Gross operating income remained stable in Q2-23 at 517 million euros (up 1% at constant exchange rates) and up 1% in H1-23 at 1,035 million euros (stable at constant exchange rates).
The cost of risk rose 8% to 91 million euros in Q2-23 but fell sharply in H1-23 (-62%) to 64 million euros, despite cautious provisioning on a limited number of specific cases in the Corporate & Investment Banking business unit.
Income before tax fell by 2% to 429 million euros in Q2-23 and rose by 16% to 1,019 million euros in H1-23.
Underlying income before tax2 was down 2% to 433 million euros in Q2-23, and up 18% to 1,033 million euros in H1-23.
1 Reported figures
2 “Underlying” means exclusive of exceptional items
3 The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses
1.1.1 Asset & Wealth Management
The Asset & Wealth Management business unit includes the Asset & Wealth Management activities of Natixis
| €m(3) | Q2-23 | % Change | H1-23 | % Change | |
| Net banking income | 776 | (5)% | 1,560 | (4)% | |
| Operating expenses | (634) | (2)% | (1,276) | (1)% | |
| Gross operating income | 142 | (14)% | 284 | (15)% | |
| Income before tax | 141 | (11)% | 330 | (5)% | |
| Exceptional items | (4) | ns | (13) | ns | |
| Underlying income before tax | 145 | (12)% | 343 | 0% | |
| Underlying cost/income ratio | 81.3% | 2.2pp | 81.0% | 2.2pp |
In Asset Management, assets under management4 stood at 1,127 billion euros at June 30, 2023. This represents 5% growth since the end of December 2022 (+6% at constant exchange rates) with a significantly positive market effect. The proportion of ESG assets stood at 40% at the end of June 2023, up 5pp year-on-year.
Net inflows in Asset Management4 in H1-23 reached 4.6 billion euros, excluding Ostrum.
At the end of June 2023, Asset Management posted a robust performance. Over 3 years, 81% of funds are ranked in the 1st and 2nd quartiles, compared with 64% at the end of June 2022 (source: Morningstar).
In Asset Management4, the total fee rate (excluding performance fees) in H1-23 was 25.0bps (+0.3bps year-on-year), of which 37.9bps excluding insurance asset management (-0.7bps year-on-year).
Net banking income generated by the Asset & Wealth Management business unit came to a total of 776 million euros, down 5% (-3% at constant exchange rates) in Q2-23, and 1,560 million euros, down 4% (-5% at constant exchange rates) in H1-23.
Operating expenses were tightly managed, falling by 2% (-1% at constant exchange rates) in Q2-23 and down 1% in H1-23 (-2% at constant exchange rates) to 634 million euros and 1,276 million euros respectively thanks, in particular, to the ongoing cost-cutting plan.
The underlying cost/income ratio3 deteriorated by 2.2pp in Q2-23 and H1-23, to 81.3% and 81.0% respectively.
Gross operating income came to 142 million euros in Q2-23, down 14%, and to 284 million euros in H1-23, down 15%.
Income before tax stood at 141 million euros (-11%) in Q2-23 and at 330 million euros (-5%) in H1-23.
Underlying income before tax2 fell by 12% to 145 million euros in Q2-23 and remained stable at 343 million euros in H1-23.
1 Reported figures
2 “Underlying” means exclusive of exceptional items
3 The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses
4 Management: Europe includes Dynamic Solutions and Vega IM; North America includes WCM IM; excluding Wealth Management
3.2.2 Corporate & Investment Banking
The Corporate & Investment Banking (CIB) business unit includes the Global markets, Global finance, Investment banking and M&A activities of Natixis.
| €m(1) | Q2-23 | % Change | H1-23 | % Change | |
| Net banking income | 1,022 | 7% | 2,060 | 7% | |
| Operating expenses | (647) | 7% | (1,309) | 6% | |
| Gross operating income | 375 | 6% | 751 | 8% | |
| Cost of risk | (90) | 15% | (69) | (59)% | |
| Income before tax | 288 | 3% | 689 | 30% | |
| Exceptional items | 0 | ns | (1) | ns | |
| Underlying income before tax | 288 | 3% | 690 | 30% | |
| Underlying cost/income ratio | 63.3% | 0.3pp | 63.5% | (0.5)pp |
At the end of June 2023, Global Markets revenues were buoyed up by the good performance of the Equity business, including with the Groupe BPCE retail banking networks, which grew by 10% to 346 million euros.
FIC-T revenues fell by 1% to 668 million euros in Q2-23. Good momentum in FI-Credit and FI-Rates activities offset lower revenues in FI-Currencies & Commodities (owing to lower currency volatility and weaker customer demand).
In Global finance, revenues at end-June 2023 were down (-7%) at 719 million euros. The good performance achieved by Trade finance partially offset lower revenues from Real Assets. The decline in portfolio revenues can be explained by the lower level of outstandings.
Investment banking activities posted revenues of €117 million, up 5% in H1-23 driven, in particular, by strong activity in the Debt Capital Markets.
Despite the sluggish market environment, M&A continued to outperform with revenues of 121 million euros, up 37% in H1-23, thanks to sustained activity by the M&A boutiques (notably Fenchurch, Solomon Partners, Natixis Partner France, and Azure capital).
Net banking income for the Retail Banking business unit rose by 7% in Q2-23 and H1-23 (+8% in Q2-23 and +7% in H1-23 at constant exchange rates) to 1,022 million euros and 2,060 million euros respectively.
Operating expenses rose by 7% in Q2-23 to 647 million euros and by 6% in H1-23 to 1,309 million euros in H1-23 (+9% in Q2-23 and +6% in H1-23 at constant exchange rates).
The underlying cost/income ratio3 weakened by a marginal 0.3pp to 63.3% in Q2-23, and improved by 0.5pp to 63.5% in H1-23.
Gross operating income rose by 6% in Q2-23 to 375 million euros, and by 8% in H1-23 to 751 million euros.
The cost of risk came to 90 million euros, up 15% in Q2-23, and stood at 69 million euros, down 59% in
S1-23.
Income before tax rose by 3% to 288 million euros in Q2-23 and by 30% to 689 million euros in H1-23.
Underlying income before tax2 rose by 3% to 288 million euros in Q2-23 and by 30% to 690 million euros in H1-23.
1 Reported figures
2 “Underlying” means exclusive of exceptional items
3 The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses
ANNEXES
Notes on methodology
Presentation of the pro-forma quarterly results
The main pro-forma restatement concerns the transition to IFRS 17. Data for 2022 has been recalculated under IFRS 17 to obtain a like-for-like basis of comparison.
New management standards adopted by Natixis (normative allocation of capital to the business lines) have led to a recalculation of the data for the 2022 quarterly series.
The tables showing the transition from reported 2022 to pro-forma 2022 are presented on annexes.
IFRS 17/IFRS 9
Groupe BPCE has applied the provisions of IFRS 17 pertaining to insurance contracts since January 1, 2023, as well as IFRS 9 for insurance entities.
IFRS 17 replaces IFRS 4 and is applicable retroactively, with the implementation of pro-forma financial statements for comparative data for the 2022 financial year (different profit recognition rates between the two standards).
IFRS 9 replaces IAS 39 by modifying the principles for the valuation of the financial assets of insurers using the same rules as those applied by banks since January 1, 2018. It applies in the same way considering the temporary exemption enjoyed by insurance entities. Groupe BPCE has elected to apply the provisions of IFRS 9 for the 2022 comparative data.
IFRS 17 provides for the estimation at inception of the Contractual Service Margin (CSM) of a group of insurance contracts recognized in the balance sheet and which is then amortized in the income statement (in Net Banking Income) as and when the service is rendered. This margin takes account, in particular, of the related overheads.
Insurance liabilities are recognized at present value.
Income and expenses relating to ceded insurance and reinsurance contracts are presented separately in Net Banking Income.
General expenses relating to insurance contracts are presented by destination as a deduction from Net Banking Income.
The cost of credit risk on financial investments in insurance activities is isolated on a separate line in the insurance aggregates in Net Banking Income.
Creation of the Digital & Payments sub-segment
The Payments and Oney business lines have been brought together within a single Digital & Payments sub-segment.
Segment information for previous quarters has been restated accordingly. These internal transactions have no impact on the Group's financial statements.
Internal transfer
Crédit Foncier's subsidiary, Banco Primus (Corporate center) was transferred to BPCE Financement (Financial Solutions & Expertise business unit within RB&I).
Segment information for previous quarters has been restated accordingly. These internal transactions have no impact on the Group's financial statements.
Exceptional items
Exceptional items and the reconciliation of the reported income statement to the underlying income statement of Groupe BPCE are detailed in the annexes.
Net banking income
Customer net interest income, excluding regulated home savings schemes, is computed on the basis of interest earned from transactions with customers, excluding net interest on centralized savings products (Livret A, Livret Développement Durable, Livret Épargne Logement passbook savings accounts) in addition to changes in provisions for regulated home purchase savings schemes. Net interest on centralized savings is assimilated to commissions.
Operating expenses
Operating expenses correspond to the aggregate total of the “Operating Expenses” (as presented in the Group’s 2022 universal registration document, note 4.7 appended to the consolidated financial statements of Groupe BPCE) and “Depreciation, amortization and impairment for property, plant and equipment and intangible assets.”
Cost/income ratio
Groupe BPCE's cost/income ratio is calculated on the basis of net banking income and operating expenses excluding exceptional items, the latter being restated to account for the Single Resolution Fund (SRF) booked in the Corporate center division. The calculations are detailed in the annexes.
Business line cost/income ratios are calculated on the basis of underlying net banking income and operating expenses.
Cost of risk
The cost of risk is expressed in basis points and measures the level of risk per business line as a percentage of the volume of loan outstandings; it is calculated by comparing net provisions booked with respect to credit risks of the period to gross customer loan outstandings at the beginning of the period.
Loan outstandings and deposits & savings
Restatements regarding transitions from book outstandings
to outstandings under management are as follows:
- Loan outstandings: the scope of outstandings under management does not include securities classified as customer loans and receivables and other securities classified as financial operations,
- Deposits & savings: the scope of outstandings under management does not include debt securities (certificates of deposit and savings bonds).
Capital adequacy
Common Equity Tier 1 is determined in accordance with the applicable CRR II/CRD V rules, after deductions.
Additional Tier-1 capital takes account of subordinated debt issues that have become non-eligible and subject to ceilings at the phase-out rate in force.
The leverage ratio is calculated in accordance with the applicable CRR II/CRD V rules. Centralized outstandings of regulated savings are excluded from the leverage exposures as are Central Bank exposures for a limited period of time (pursuant to ECB decision 2021/27 of June 18, 2021).
Total loss-absorbing capacity
The amount of liabilities eligible for inclusion in the numerator used to calculate the Total Loss-Absorbing Capacity (TLAC) ratio is determined by article 92a of CRR. Please note that a quantum of Senior Preferred securities has not been included in our calculation of TLAC.
This amount is consequently comprised of the 4 following items:
- Common Equity Tier 1 in accordance with the applicable
CRR II/CRD IV rules, - Additional Tier-1 capital in accordance with the applicable
CRR II/CRD IV rules, - Tier-2 capital in accordance with the applicable CRR II/CRD IV rules,
- Subordinated liabilities not recognized in the capital mentioned above and whose residual maturity is greater than 1 year, namely:
- The share of additional Tier-1 capital instruments not recognized in common equity (i.e. included in the phase-out),
- The share of the prudential discount on Tier-2 capital instruments whose residual maturity is greater than 1 year,
- The nominal amount of Senior Non-Preferred securities maturing in more than 1 year.
Liquidity
Total liquidity reserves comprise the following:
- Central bank-eligible assets include: ECB-eligible securities not eligible for the LCR, taken for their ECB valuation (after ECB haircut), securities retained (securitization and covered bonds) that are available and ECB-eligible taken for their ECB valuation (after ECB haircut) and private receivables available and eligible for central bank funding (ECB and the Federal Reserve), net of central bank funding,
- LCR eligible assets comprising the Group’s LCR reserve taken for their LCR valuation,
- Liquid assets placed with central banks (ECB and the Federal Reserve), net of US Money Market Funds deposits and to which fiduciary money is added.
Short-term funding corresponds to funding with an initial maturity of less than, or equal to, 1 year and the short-term maturities of medium-/long-term debt correspond to debt with an initial maturity date of more than 1 year maturing within the next 12 months.
Customer deposits are subject to the following adjustments:
- Addition of security issues placed by the Banque Populaire and Caisse d’Epargne retail banking networks with their customers, and certain operations carried out with counterparties comparable to customer deposits
- Withdrawal of short-term deposits held by certain financial customers collected by Natixis in pursuit of its intermediation activities.
Business line indicators – BP & CE networks
Average rate (%): the average customer rate for home loans corresponds to the weighted average of actuarial rates for committed home loans, excluding ancillary items (application fees, guarantees, creditor insurance). The rates are weighted by the amounts committed (offers made, net of cancellations) over the period under review. The calculation is based on aggregate home loans, excluding zero interest rate loans
Business line indicators – Oney Bank
BtoC: financing solutions distributed directly to customers. This line includes personal loans and revolving credit.
BtoBtoC: payment and financing solutions distributed to customers through partners and retail chains. This line includes split payment, ‘Buy Now Pay Later’, and assigned credit solutions.
Digital indicators
The number of active customers using mobile apps or websites corresponds to the number of customers who have made at least one visit via one of the digital channels (mobile apps or website) over the last 12 months.
The number of visits corresponds to the average number of visits (all markets combined) via mobile apps and websites for the BP and CE over a 7-day period since the beginning of the year.
The scores on the App Store or Google Play online stores correspond to the average of the scores awarded by users at the end of the period in question.
Reconciliation of 2022 data to pro forma data
| Groupe BPCE | Q1-22 | ||||||
| In millions of euros | Net banking income | Operating expenses | Cost of risk | Share in net income of associates | Gains or losses on other assets | Income before tax | Net income - Group share |
| Reported figures | 6,575 | (4,961) | (424) | 17 | 37 | 1,244 | 785 |
| IFRS 17 | (426) | 376 | 13 | (1) | (38) | (29) | |
| Pro forma figures | 6,149 | (4,585) | (411) | 16 | 37 | 1,206 | 755 |
| Retail banking and Insurance | Q1-22 | ||||||
| In millions of euros | Net banking income | Operating expenses | Cost of risk | Share in net income of associates | Gains or losses on other assets | Income before tax | Net income - Group share |
| Reported figures | 4,627 | (2,856) | (343) | 12 | 5 | 1,444 | 1,076 |
| IFRS 17 | (422) | 375 | 13 | (2) | (36) | (27) | |
| Pro forma figures | 4,205 | (2,481) | (330) | 10 | 5 | 1,409 | 1,049 |
| Global financial services | Q1-22 | ||||||
| In millions of euros | Net banking income | Operating expenses | Cost of risk | Share in net income of associates | Gains or losses on other assets | Income before tax | Net income - Group share |
| Reported figures | 1,782 | (1,275) | (85) | 3 | 15 | 441 | 313 |
| Guarantees | (2) | (2) | (1) | ||||
| New rules | 2 | 2 | 1 | ||||
| Pro forma figures | 1,782 | (1,275) | (85) | 3 | 15 | 440 | 313 |
| Corporate center | Q1-22 | ||||||
| In millions of euros | Net banking income | Operating expenses | Cost of risk | Share in net income of associates | Gains or losses on other assets | Income before tax | Net income - Group share |
| Reported figures | 166 | (830) | 4 | 2 | 18 | (640) | (604) |
| Guarantees | 2 | 2 | 1 | ||||
| New rules | (2) | (2) | (1) | ||||
| IFRS 17 | (5) | 1 | 1 | (2) | (2) | ||
| Pro forma figures | 162 | (829) | 4 | 3 | 18 | (643) | (606) |
| Groupe BPCE | Q2-22 | |||||||
| In millions of euros | Net banking income | Operating expenses | Cost of risk | Share in net income of associates | Gains or losses on other assets | Income before tax | Net income - Group share | |
| Reported figures | 6,569 | (4,250) | (457) | 15 | 10 | 1,886 | 1,329 | |
| IFRS 17 | (537) | 345 | 12 | (15) | (194) | (147) | ||
| Pro forma figures | 6,032 | (3,904) | (445) | 0 | 10 | 1,693 | 1,182 | |
| Retail banking and Insurance | Q2-22 | |||||||
| In millions of euros | Net banking income | Operating expenses | Cost of risk | Share in net income of associates | Gains or losses on other assets | Income before tax | Net income - Group share | |
| Reported figures | 4,630 | (2,819) | (392) | 8 | 1 | 1,430 | 1,056 | |
| IFRS 17 | (530) | 346 | 12 | (14) | (185) | (141) | ||
| Pro forma figures | 4,101 | (2,473) | (379) | (5) | 1 | 1,245 | 915 | |
| Global financial services | Q2-22 | |||||||
| In millions of euros | Net banking income | Operating expenses | Cost of risk | Share in net income of associates | Gains or losses on other assets | Income before tax | Net income - Group share | |
| Reported figures | 1,767 | (1,252) | (84) | 3 | 434 | 314 | ||
| New rules | 2 | 2 | 1 | |||||
| Pro forma figures | 1,771 | (1,252) | (84) | 3 | 437 | 316 | ||
| Corporate center | Q2-22 | |||||||
| In millions of euros | Net banking income | Operating expenses | Cost of risk | Share in net income of associates | Gains or losses on other assets | Income before tax | Net income - Group share | |
| Reported figures | 171 | (179) | 18 | 3 | 8 | 22 | (40) | |
| New rules | (2) | (2) | (1) | |||||
| IFRS 17 | (7) | (1) | (9) | (6) | ||||
| Pro forma figures | 161 | (179) | 18 | 2 | 8 | 10 | (48) | |
| Groupe BPCE | Q3-22 | ||||||
| In millions of euros | Net banking income | Operating expenses | Cost of risk | Share in net income of associates | Gains or losses on other assets | Income before tax | Net income - Group share |
| Reported figures | 6,309 | (4,258) | (347) | 15 | 14 | 1,732 | 1,288 |
| IFRS 17 | (374) | 342 | 5 | 5 | (22) | (14) | |
| Pro forma figures | 5,934 | (3,916) | (342) | 20 | 14 | 1,710 | 1,274 |
| Retail banking and Insurance | Q3-22 | ||||||
| In millions of euros | Net banking income | Operating expenses | Cost of risk | Share in net income of associates | Gains or losses on other assets | Income before tax | Net income - Group share |
| Reported figures | 4,437 | (2,756) | (366) | 13 | 4 | 1,332 | 955 |
| IFRS 17 | (380) | 343 | 5 | 5 | (27) | (17) | |
| Pro forma figures | 4,057 | (2,413) | (361) | 19 | 4 | 1,305 | 977 |
| Global financial services | Q3-22 | ||||||
| In millions of euros | Net banking income | Operating expenses | Cost of risk | Share in net income of associates | Gains or losses on other assets | Income before tax | Net income - Group share |
| Reported figures | 1,692 | (1,265) | (19) | 3 | 411 | 293 | |
| New rules | 2 | 2 | 1 | ||||
| Pro forma figures | 1,694 | (1,265) | (19) | 3 | 413 | 294 | |
| Corporate center | Q3-22 | ||||||
| In millions of euros | Net banking income | Operating expenses | Cost of risk | Share in net income of associates | Gains or losses on other assets | Income before tax | Net income - Group share |
| Reported figures | 179 | (236) | 38 | (1) | 10 | (11) | 0 |
| New rules | (2) | (2) | (1) | ||||
| IFRS 17 | 6 | (1) | 5 | 3 | |||
| Pro forma figures | 183 | (237) | 38 | (1) | 10 | (7) | 2 |
| Groupe BPCE | Q4-22 | |||||||
| In millions of euros | Net banking income | Operating expenses | Cost of risk | Share in net income of associates | Gains or losses on other assets | Income before tax | Net income - Group share | |
| Reported figures | 6,252 | (4,608) | (772) | (22) | 275 | 885 | 549 | |
| IFRS 17 | (408) | 375 | 6 | 6 | (21) | (15) | ||
| Pro forma figures | 5,844 | (4,233) | (766) | (16) | 275 | 863 | 535 | |
| Retail banking and Insurance | Q4-22 | |||||||
| In millions of euros | Net banking income | Operating expenses | Cost of risk | Share in net income of associates | Gains or losses on other assets | Income before tax | Net income - Group share | |
| Reported figures | 4,244 | (3,008) | (652) | 5 | 292 | 881 | 680 | |
| IFRS 17 | (409) | 371 | 6 | 6 | (26) | (18) | ||
| Pro forma figures | 3,835 | (2,637) | (646) | 11 | 292 | 856 | 662 | |
| Global financial services | Q4-22 | |||||||
| In millions of euros | Net banking income | Operating expenses | Cost of risk | Share in net income of associates | Gains or losses on other assets | Income before tax | Net income - Group share | |
| Reported figures | 1,863 | (1,376) | (60) | 4 | 1 | 432 | 296 | |
| New rules | 2 | 2 | 1 | |||||
| Pro forma figures | 1,865 | (1,376) | (60) | 4 | 1 | 434 | 297 | |
| Corporate center | Q4-22 | |||||||
| In millions of euros | Net banking income | Operating expenses | Cost of risk | Share in net income of associates | Gains or losses on other assets | Income before tax | Net income - Group share | |
| Reported figures | 146 | (224) | (60) | (31) | (18) | (429) | (427) | |
| New rules | (2) | (2) | (1) | |||||
| IFRS 17 | 4 | 4 | 3 | |||||
| Pro forma figures | 144 | (220) | (60) | (31) | (18) | (426) | (425) | |
| Groupe BPCE | 2022 | ||||||
| In millions of euros | Net banking income | Operating expenses | Cost of risk | Share in net income of associates | Gains or losses on other assets | Income before tax | Net income - Group share |
| Reported figures | 25,705 | (18,077) | (2,000) | 24 | 336 | 5,748 | 3,951 |
| IFRS 17 | (1,745) | 1,439 | 36 | (4) | (275) | (205) | |
| Pro forma figures | 23,959 | (16,638) | (1,964) | 20 | 336 | 5,473 | 3,746 |
| Retail banking and Insurance | 2022 | ||||||
| In millions of euros | Net banking income | Operating expenses | Cost of risk | Share in net income of associates | Gains or losses on other assets | Income before tax | Net income - Group share |
| Reported figures | 17,938 | (11,439) | (1,753) | 39 | 302 | 5,088 | 3,807 |
| IFRS 17 | (1,740) | 1,435 | 36 | (4) | (274) | (204) | |
| Pro forma figures | 16,198 | (10,004) | (1,717) | 35 | 302 | 4,814 | 3,603 |
| Global financial services | 2022 | ||||||
| In millions of euros | Net banking income | Operating expenses | Cost of risk | Share in net income of associates | Gains or losses on other assets | Income before tax | Net income - Group share |
| Reported figures | 7,105 | (5,168) | (247) | 13 | 17 | 1,718 | 1,215 |
| New rules | 6 | 0 | 0 | 0 | 0 | 6 | 5 |
| Pro forma figures | 7,111 | (5,168) | (247) | 13 | 17 | 1,725 | 1,220 |
| Corporate center | 2022 | ||||||
| In millions of euros | Net banking income | Operating expenses | Cost of risk | Share in net income of associates | Gains or losses on other assets | Income before tax | Net income - Group share |
| Reported figures | 662 | (1,470) | 0 | (28) | 18 | (1,058) | (1,071) |
| New rules | (6) | 0 | 0 | 0 | 0 | (6) | (5) |
| IFRS 17 | (5) | 4 | - | 0 | 0 | (1) | (1) |
| Pro forma figures | 650 | (1,465) | 0 | (28) | 18 | (1,066) | (1,077) |
Q2-23 & Q2-22 results: reconciliation of reported data to alternative performance measures
| €m | Net banking income | Operating expenses | Cost of risk | Gains or losses on other assets | Income before tax | Net income - Group share | |
| Reported Q2-23 results | 5,467 | (3,799) | (342) | 2 | 1,337 | 973 | |
| Transformation and reorganization costs | Business lines/Corporate center | 2 | (48) | 1 | (45) | (32) | |
| Disposals | Corporate center | (1) | (1) | (1) | |||
| Disputes | Business lines/Corporate center | 87 | 87 | 87 | |||
| Q2-23 results excluding exceptional items | 5,377 | (3,751) | (343) | 2 | 1,297 | 918 |
| €m | Net banking income | Operating expenses | Cost of risk | Gains or losses on other assets | Income before tax | Net income - Group share | |
| Pro forma reported Q2-22 results | 6,032 | (3,904) | (445) | 10 | 1,693 | 1,182 | |
| Transformation and reorganization costs | Business lines/Corporate center | 5 | (54) | 7 | (42) | (32) | |
| Disposals | Corporate center | ||||||
| Pro forma Q2-22 results excluding exceptional items | 6,027 | (3,850) | (445) | 3 | 1,735 | 1,214 |
H1-23 & H1-22 results: reconciliation of reported data to alternative performance measures
| €m | Net banking income | Operating expenses | Cost of risk | Gains or losses on other assets | Income before tax | Net income - Group share | |
| Reported H1-23 results | 11,281 | (8,386) | (669) | 51 | 2,305 | 1,506 | |
| Transformation and reorganization costs | Business lines/Corporate center | 6 | (104) | 3 | (95) | (68) | |
| Disposals | Corporate center | (1) | (1) | (1) | |||
| Disputes | Business lines/Corporate center | 87 | 87 | 87 | |||
| H1-23 results excluding exceptional items | 11,188 | (8,282) | (671) | 52 | 2,314 | 1,488 |
| €m | Net banking income | Operating expenses | Cost of risk | Gains or losses on other assets | Income before tax | Net income - Group share | |
| Pro forma reported H1-22 results | 12,181 | (8,490) | (856) | 48 | 2,899 | 1,937 | |
| Transformation and reorganization costs | Business lines/Corporate center | 8 | (130) | 28 | (94) | (65) | |
| Disposals | Corporate center | 2 | 14 | 16 | 15 | ||
| Pro forma H1-22 results excluding exceptional items | 12,173 | (8,361) | (856) | 6 | 2,978 | 1,987 |
Groupe BPCE: underlying cost to income ratio excluding SRF contribution
| €m | Net banking income | Operating expenses | Cost income ratio underlying excluding SRF contribution |
| Q2-23 reported figures | 5,467 | (3,799) | |
| Impact of exceptional items | 89 | (48) | |
| Contribution to SRF | 128 | ||
| Q2-23 underlying figures excluding contribution SRF | 5,377 | (3,879) | 72.1% |
| €m | Net banking income | Operating expenses | Cost income ratio underlying excluding SRF contribution |
| Q2-22 Pro forma reported figures | 6,032 | (3,904) | |
| Impact of exceptional items | 5 | (55) | |
| Contribution to SRF | 0 | ||
| Q2-22 underlying figures excluding contribution SRF | 6,027 | (3,850) | 63.9% |
Groupe BPCE: underlying cost to income ratio excluding SRF contribution
| €m | Net banking income | Operating expenses | Cost income ratio underlying excluding SRF contribution |
| H1-23 reported figures | 11,281 | (8,386) | |
| Impact of exceptional items | 93 | (104) | |
| Contribution to SRF | (457) | ||
| H1-23 underlying figures excluding contribution SRF | 11,188 | (7,826) | 69.9% |
| €m | Net banking income | Operating expenses | Cost income ratio underlying excluding SRF contribution |
| H1-22 Pro forma reported figures | 12,181 | (8,490) | |
| Impact of exceptional items | 8 | (128) | |
| Contribution to SRF | (596) | ||
| H1-22 Pro forma underlying figures excluding SRF | 12,173 | (7,765) | 63.8% |
Groupe BPCE: quarterly income statement per business line
| RETAIL BANKING & INSURANCE | GLOBAL FINANCIAL SERVICES | CORPORATE CENTER | GROUPE BPCE | ||||||
| €m | Q2-23 | Q2-22 | Q2-23 | Q2-22 | Q2-23 | Q2-22 | Q2-23 | Q2-22 | % |
| Net banking income | 3,655 | 4,101 | 1,798 | 1,771 | 13 | 161 | 5,467 | 6,032 | (9)% |
| Operating expenses | (2,459) | (2,473) | (1,282) | (1,252) | (58) | (179) | (3,799) | (3,904) | (3)% |
| Gross operating income | 1,196 | 1,628 | 517 | 518 | (45) | (18) | 1,667 | 2,128 | (22)% |
| Cost of risk | (252) | (379) | (91) | (84) | 1 | 18 | (342) | (445) | (23)% |
| Income before tax | 952 | 1,245 | 429 | 437 | (44) | 10 | 1,337 | 1,693 | (21)% |
| Income tax | (224) | (319) | (115) | (110) | (14) | (58) | (353) | (487) | (28)% |
| Non-controlling interests | 1 | (11) | (14) | (12) | 1 | 0 | (12) | (23) | (47)% |
| Net income – Group share | 729 | 915 | 300 | 316 | (56) | (48) | 973 | 1,182 | (18)% |
Groupe BPCE: half-yearly income statement per business line
| RETAIL BANKING & INSURANCE | GLOBAL FINANCIAL SERVICES | CORPORATE CENTER | GROUPE BPCE | ||||||
| €m | H1-23 | H1-22 | H1-23 | H1-22 | H1-23 | H1-22 | H1-23 | H1-22 | % |
| Net banking income | 7,546 | 8,306 | 3,620 | 3,553 | 115 | 322 | 11,281 | 12,181 | (7)% |
| Operating expenses | (4,955) | (4,954) | (2,585) | (2,527) | (846) | (1,008) | (8,386) | (8,490) | (1)% |
| Gross operating income | 2,590 | 3,352 | 1,035 | 1,025 | (731) | (685) | 2,895 | 3,692 | (22)% |
| Cost of risk | (560) | (709) | (64) | (169) | (44) | 22 | (669) | (856) | (22)% |
| Income before tax | 2,058 | 2,654 | 1,019 | 878 | (773) | (633) | 2,305 | 2,899 | (20)% |
| Income tax | (493) | (674) | (261) | (225) | (24) | (22) | (777) | (921) | (16)% |
| Non-controlling interests | 3 | (16) | (26) | (24) | 1 | 0 | (22) | (40) | (47)% |
| Net income – Group share | 1,569 | 1,963 | 732 | 629 | (795) | (655) | 1,506 | 1,937 | (22)% |
Groupe BPCE: quarterly series
| GROUPE BPCE | ||||||
| €m | Q1-22 | Q2-22 | Q3-22 | Q4-22 | Q1-23 | Q2-23 |
| Net banking income | 6,149 | 6,032 | 5,934 | 5,844 | 5,815 | 5,467 |
| Operating expenses | (4,585) | (3,904) | (3,916) | (4,233) | (4,587) | (3,799) |
| Gross operating income | 1,564 | 2,128 | 2,019 | 1,611 | 1,228 | 1,677 |
| Cost of risk | (411) | (445) | (342) | (776) | (326) | (342) |
| Income before tax | 1,206 | 1,693 | 1,710 | 863 | 968 | 1,337 |
| Net income – Group share | 755 | 1,182 | 1,274 | 535 | 533 | 973 |
Consolidated balance sheet
| ASSETS €m | June 30, 2023 | Dec. 31, 2022 |
| Cash and amounts due from central banks | 143,775 | 171,318 |
| Financial assets at fair value through profit or loss | 204,300 | 192,751 |
| Hedging derivatives | 12,073 | 12,700 |
| Financial assets at fair value through shareholders' equity | 45,301 | 44,284 |
| Financial assets at amortized cost | 28,516 | 27,650 |
| Loans and receivables due from credit institutions and similar at amortized cost | 105,497 | 97,694 |
| Loans and receivables due from customers at amortized cost | 831,807 | 826,943 |
| Revaluation difference on interest rate risk-hedged portfolios | (6,279) | (6,845) |
| Investments of insurance activities | 0 | 0 |
| Financial investments of insurance activities | 96,133 | 93,509 |
| Insurance contracts written - Assets | 1,380 | 1,100 |
| Reinsurance contracts ceded - Assets | 9,106 | 8,507 |
| Current tax assets | 1,057 | 706 |
| Deferred tax assets | 4,851 | 5,078 |
| Accrued income and other assets | 16,841 | 14,339 |
| Non-current assets held for sale | 132 | 219 |
| Deferred profit sharing | 0 | 0 |
| Investments in associates | 1,590 | 1,594 |
| Investment property | 744 | 750 |
| Property, plant and equipment | 5,943 | 6,077 |
| Intangible assets | 1,099 | 1,087 |
| Goodwill | 4 ,246 | 4,207 |
| TOTAL ASSETS | 1,508,112 | 1,503,668 |
| LIABILITIES €m | June 30, 2023 | Dec. 31, 2022 |
| Amounts due to central banks | 5 | 9 |
| Financial liabilities at fair value through profit or loss | 192,363 | 184,857 |
| Hedging derivatives | 16,516 | 16,370 |
| Debt securities | 269,255 | 243,380 |
| Amounts due to credit institutions | 89,499 | 139,142 |
| Amounts due to customers | 702,421 | 693,970 |
| Revaluation difference on interest rate risk-hedged portfolios | 266 | 389 |
| Current tax liabilities | 1,932 | 1,808 |
| Deferred tax liabilities | 2,053 | 2,052 |
| Accrued expenses and other liabilities | 23,319 | 20,522 |
| Liabilities associated with non-current assets held for sale | 114 | 162 |
| Liabilities related to insurance contracts | 0 | 0 |
| Liabilities related to insurance contracts written | 101,498 | 94,651 |
| Reinsurance contracts ceded - Liabilities | 188 | 108 |
| Provisions | 4,644 | 4,901 |
| Subordinated debt | 20,678 | 18,932 |
| Shareholders' equity | 83 361 | 82,415 |
| Equity attributable to equity holders of the parent | 82,900 | 81,936 |
| Non-controlling interests | 461 | 479 |
| TOTAL LIABILITIES | 1,508,112 | 1,503,668 |
Goodwill
| €m | Dec. 31, 2022 | Acquisitions | Disposals | Conversion | Other changes | June 30, 2023 |
| Retail Banking & Insurance entities | 754 | 74 | (1) | 827 | ||
| Asset & Wealth Management entities | 3,307 | (2) | (35) | 3 | 3,274 | |
| Corporate & Investment Banking entities | 147 | (1) | 146 | |||
| Total | 4,208 | 74 | (2) | (36) | 2 | 4,246 |
Retail Banking & Insurance: quarterly income statement
| BANQUE POPULAIRE NETWORK | CAISSE D'EPARGNE NETWORK | FINANCIAL SOLUTIONS & EXPERTISE | INSURANCE | DIGITAL & PAYMENTS | OTHER NETWORK | RETAIL BANKING & INSURANCE | |||||||||||||||||
| €m | Q2-23 | Q2-22 | % | Q2-23 | Q2-22 | % | Q2-23 | Q2-22 | % | Q2-23 | Q2-22 | % | Q2-23 | Q2-22 | % | Q2-23 | Q2-22 | % | Q2-23 | Q2-22 | % | ||
| Net banking income | 1,460 | 1,701 | (14)% | 1,462 | 1,788 | (18)% | 306 | 292 | 5% | 126 | (2) | ns | 203 | 232 | (12)% | 97 | 89 | 9% | 3,655 | 4,101 | (11)% | ||
| Operating expenses | (1,015) | (973) | 4% | (1,041) | (1,082) | (4)% | (151) | (147) | 3% | (37) | (41) | (9)% | (163) | (178) | (8)% | (52) | (52) | 0% | (2,459) | (2,473) | (1)% | ||
| Gross operating income | 445 | 729 | (39)% | 422 | 705 | (40)% | 155 | 145 | 7% | 89 | (43) | ns | 40 | 54 | (27)% | 45 | 37 | 21% | 1,196 | 1,628 | (27)% | ||
| Cost of risk | (110) | (200) | (45)% | (84) | (115) | (27)% | (19) | (15) | 30% | 0 | 0 | (41) | (30) | 34% | 2 | (19) | (110)% | (252) | (379) | (33)% | |||
| Income before tax | 345 | 530 | (35)% | 338 | 589 | (43)% | 136 | 129 | 5% | 93 | (46) | ns | (6) | 24 | ns | 47 | 19 | 154% | 952 | 1,245 | (24)% | ||
| Income tax | (82) | (127) | (35)% | (81) | (157) | (49)% | (34) | (31) | 8% | (9) | (4) | ns | (6) | (3) | 84% | (11) | (4) | 171% | (224) | (319) | (30)% | ||
| Non-controlling interests | (5) | (3) | (88)% | (3) | (6) | (43)% | 0 | 0 | ns | 0 | 0 | ns | 9 | (2) | ns | 0 | 0 | 1 | (11) | (107)% | |||
| Net income - Group share | 258 | 401 | (36)% | 253 | 426 | (40)% | 102 | 98 | 4% | 83 | (43) | ns | (3) | 18 | ns | 36 | 14 | 149% | 729 | 915 | (20)% | ||
Retail Banking & Insurance: half-yearly income statement
| BANQUE POPULAIRE NETWORK | CAISSE D'EPARGNE NETWORK | FINANCIAL SOLUTIONS & EXPERTISE | INSURANCE | DIGITAL & PAYMENTS | OTHER NETWORK | RETAIL BANKING & INSURANCE | |||||||||||||||
| €m | H1-23 | H1-22 | % | H1-23 | H1-22 | % | H1-23 | H1-22 | % | H1-23 | H1-22 | % | H1-23 | H1-22 | % | H1-23 | H1-22 | % | H1-23 | H1-22 | % |
| Net banking income | 3,017 | 3,415 | (12)% | 2,998 | 3,543 | (15)% | 621 | 587 | 6% | 306 | 125 | X 2,5 | 408 | 463 | (12)% | 194 | 173 | 12% | 7,546 | 8,306 | (9)% |
| Operating expenses | (2,033) | (1,975) | 3% | (2,106) | (2,144) | (2)% | (309) | (296) | 4% | (80) | (77) | 4% | (324) | (360) | (10)% | (103) | (102) | 1% | (4,955) | (4,954) | 0% |
| Gross operating income | 984 | 1,440 | (32)% | 892 | 1,399 | (36)% | 313 | 291 | 7% | 226 | 48 | X 4,7 | 84 | 103 | (18)% | 91 | 71 | 29% | 2,590 | 3,352 | (23)% |
| Cost of risk | (242) | (353) | (32)% | (220) | (246) | (10)% | (26) | (28) | (8)% | 0 | 0 | (73) | (59) | 23% | 0 | (24) | ns | (560) | (709) | (21)% | |
| Income before tax | 768 | 1,102 | (30)% | 672 | 1,152 | (42)% | 287 | 263 | 9% | 231 | 44 | X 5,3 | 2 | 45 | (97)% | 99 | 48 | X 2,1 | 2,058 | 2,654 | (22)% |
| Income tax | (180) | (265) | (32)% | (161) | (307) | (48)% | (74) | (68) | 8% | (39) | (15) | X 2,6 | (14) | (7) | 89% | (25) | (11) | X 2,3 | (493) | (674) | (27)% |
| Non-controlling interests | (9) | (6) | 57% | (4) | (7) | (42)% | 0 | 0 | 0 | 0 | ns | 16 | (3) | ns | 0 | 0 | 3 | (16) | ns | ||
| Net income - Group share | 578 | 831 | (30)% | 507 | 838 | (40)% | 213 | 194 | 10% | 192 | 29 | X 6,6 | 4 | 34 | (89)% | 74 | 36 | X 2,1 | 1,569 | 1,963 | (20)% |
Retail Banking & Insurance: quarterly series
| RETAIL BANKING & INSURANCE | ||||||
| €m | Q1-22 | Q2-22 | Q3-22 | Q4-22 | Q1-23 | Q2-23 |
| Net banking income | 4,205 | 4,101 | 4,057 | 3,835 | 3,891 | 3,655 |
| Operating expenses | (2,481) | (2,473) | (2,413) | (2,637) | (2,496) | (2,459) |
| Gross operating income | 1,724 | 1,628 | 1,644 | 1,198 | 1,395 | 1,196 |
| Cost of risk | (330) | (379) | (361) | (646) | (308) | (252) |
| Income before tax | 1,409 | 1,245 | 1,305 | 856 | 1,107 | 952 |
| Net income – Group share | 1,409 | 915 | 977 | 662 | 840 | 729 |
Retail Banking & Insurance: Banque Populaire and Caisse d’Epargne networks quarterly series
| BANQUE POPULAIRE NETWORK | ||||||
| €m | Q1-22 | Q2-22 | Q3-22 | Q4-22 | Q1-23 | Q2-23 |
| Net banking income | 1,713 | 1,701 | 1,638 | 1,534 | 1,557 | 1,460 |
| Operating expenses | (1,003) | (973) | (990) | (1,018) | (1,018) | (1,015) |
| Gross operating income | 711 | 729 | 647 | 516 | 539 | 445 |
| Cost of risk | (154) | (200) | (166) | (279) | (132) | (110) |
| Income before tax | 572 | 530 | 502 | 253 | 422 | 345 |
| Net income – Group share | 430 | 401 | 380 | 182 | 320 | 258 |
| CAISSE D’EPARGNE NETWORK | ||||||
| €m | Q1-22 | Q2-22 | Q3-22 | Q4-22 | Q1-23 | Q2-23 |
| Net banking income | 1,755 | 1,788 | 1,704 | 1,541 | 1,536 | 1,462 |
| Operating expenses | (1,062) | (1,082) | (1,011) | (1,132) | (1,065) | (1,041) |
| Gross operating income | 693 | 705 | 693 | 409 | 471 | 422 |
| Cost of risk | (130) | (115) | (152) | (248) | (136) | (84) |
| Income before tax | 563 | 589 | 541 | 166 | 334 | 338 |
| Net income – Group share | 413 | 426 | 398 | 95 | 253 | 253 |
Retail Banking & Insurance: FSE quarterly series
| FINANCIAL SOLUTIONS & EXPERTISE | ||||||
| €m | Q1-22 | Q2-22 | Q3-22 | Q4-22 | Q1-23 | Q2-23 |
| Net banking income | 295 | 292 | 287 | 272 | 315 | 306 |
| Operating expenses | (149) | (147) | (147) | (165) | (157) | (151) |
| Gross operating income | 146 | 145 | 140 | 107 | 158 | 155 |
| Cost of risk | (13) | (15) | (19) | (39) | (6) | (19) |
| Income before tax | 133 | 129 | 121 | 67 | 151 | 136 |
| Net income – Group share | 97 | 98 | 91 | 48 | 112 | 102 |
Retail Banking & Insurance: Insurance quarterly series
| INSURANCE | ||||||
| €m | Q1-22 | Q2-22 | Q3-22 | Q4-22 | Q1-23 | Q2-23 |
| Net banking income | 127 | (2) | 112 | 170 | 180 | 126 |
| Operating expenses | (36) | (41) | (38) | (51) | (43) | (37) |
| Gross operating income | 91 | (43) | 74 | 118 | 137 | 89 |
| Income before tax | 90 | (46) | 72 | 119 | 139 | 93 |
| Net income – Group share | 72 | (43) | 58 | 83 | 109 | 83 |
Retail Banking & Insurance: Digital & Payments quarterly series
| DIGITAL & PAYMENTS | ||||||||
| €m | Q1-22 | Q1-22 (at constant scope, excluding Bimpli) | Q2-22 | Q2-22 (at constant scope, excluding Bimpli) | Q3-22 | Q4-22 | Q1-23 | Q2-23 |
| Net banking income | 231 | 207 | 232 | 208 | 231 | 231 | 205 | 203 |
| Operating expenses | (182) | (160) | (178) | (157) | (178) | (213) | (161) | (163) |
| Gross operating income | 49 | 47 | 54 | 51 | 53 | 18 | 44 | 40 |
| Income before tax | 21 | 20 | 24 | 21 | 29 | 251 | 8 | (6) |
| Net income – Group share | 16 | 15 | 18 | 16 | 21 | 253 | 7 | (3) |
Retail Banking & Insurance: Other network quarterly series
| OTHER NETWORK | ||||||
| €m | Q1-22 | Q2-22 | Q3-22 | Q4-22 | Q1-23 | Q2-23 |
| Net banking income | 84 | 89 | 86 | 88 | 97 | 97 |
| Operating expenses | (50) | (52) | (49) | (58) | (51) | (52) |
| Gross operating income | 34 | 37 | 37 | 30 | 46 | 45 |
| Cost of risk | (5) | (19) | 0 | (32) | (2) | 2 |
| Income before tax | 29 | 19 | 39 | 0 | 52 | 47 |
| Net income – Group share | 22 | 14 | 29 | 0 | 39 | 36 |
Global Financial Services: quarterly income statement per business line
| ASSET AND WEALTH MANAGEMENT | CORPORATE & INVESTMENT BANKING | GLOBAL FINANCIAL SERVICES | |||||
| €m | Q2-23 | Q2-22 | Q2-23 | Q2-22 | Q2-23 | Q2-22 | % |
| Net banking income | 776 | 814 | 1,022 | 956 | 1,798 | 1,771 | 2% |
| Operating expenses | (634) | (650) | (647) | (602) | (1,282) | (1,252) | 2% |
| Gross operating income | 142 | 165 | 375 | 354 | 517 | 518 | (0)% |
| Cost of risk | (1) | (6) | (90) | (78) | (91) | (84) | 8% |
| Net gains or losses on other assets | 0 | 0 | 0 | 0 | 0 | 0 | |
| Income before tax | 141 | 159 | 288 | 279 | 429 | 437 | (2)% |
| Net income – Group share | 89 | 112 | 211 | 204 | 300 | 316 | (5)% |
Global Financial Services: half-yearly income statement per business line
| ASSET AND WEALTH MANAGEMENT | CORPORATE & INVESTMENT BANKING | GLOBAL FINANCIAL SERVICES | |||||
| €m | H1-23 | H1-22 | H1-23 | H1-22 | H1-23 | H1-22 | % |
| Net banking income | 1,560 | 1,627 | 2,060 | 1,926 | 3,620 | 3,553 | 2% |
| Operating expenses | (1,276) | (1,294) | (1,309) | (1,233) | (2,585) | (2,527) | 2% |
| Gross operating income | 284 | 332 | 751 | 693 | 1,035 | 1,025 | 1% |
| Cost of risk | 5 | (1) | (69) | (168) | (64) | (169) | (62)% |
| Net gains or losses on other assets | 42 | 16 | 0 | 0 | 42 | 16 | X 2,6 |
| Income before tax | 330 | 348 | 689 | 530 | 1 019 | 878 | 16% |
| Net income – Group share | 227 | 237 | 505 | 392 | 732 | 629 | 16% |
Global Financial Services: quarterly series
| GLOBAL FINANCIAL SERVICES | ||||||
| €m | Q1-22 | Q2-22 | Q3-22 | Q4-22 | Q1-23 | Q2-23 |
| Net banking income | 1,782 | 1,771 | 1,694 | 1,865 | 1,822 | 1,798 |
| Operating expenses | (1,275) | (1,252) | (1,265) | (1,376) | (1,303) | (1,282) |
| Gross operating income | 507 | 518 | 429 | 489 | 519 | 517 |
| Cost of risk | (85) | (84) | (19) | (60) | 27 | (91) |
| Income before tax | 440 | 437 | 413 | 434 | 590 | 429 |
| Net income – Group share | 313 | 316 | 294 | 297 | 432 | 300 |
Asset & Wealth Management: quarterly series
| ASSET & WEALTH MANAGEMENT | ||||||
| €m | Q1-22 | Q2-22 | Q3-22 | Q4-22 | Q1-23 | Q2-23 |
| Net banking income | 812 | 814 | 796 | 929 | 784 | 776 |
| Operating expenses | (644) | (650) | (640) | (704) | (642) | (634) |
| Gross operating income | 168 | 165 | 157 | 225 | 142 | 142 |
| Cost of risk | 6 | (6) | 4 | 1 | 6 | (1) |
| Income before tax | 189 | 159 | 162 | 227 | 189 | 141 |
| Net income – Group share | 126 | 112 | 109 | 145 | 138 | 89 |
Corporate & Investment Banking: quarterly series
| CORPORATE & INVESTMENT BANKING | ||||||
| €m | Q1-22 | Q2-22 | Q3-22 | Q4-22 | Q1-23 | Q2-23 |
| Net banking income | 970 | 956 | 898 | 935 | 1 038 | 1 022 |
| Operating expenses | (631) | (602) | (626) | (671) | (662) | (647) |
| Gross operating income | 339 | 354 | 272 | 264 | 376 | 375 |
| Cost of risk | (90) | (78) | (23) | (61) | 21 | (90) |
| Income before tax | 252 | 279 | 251 | 207 | 401 | 288 |
| Net income – Group share | 187 | 204 | 185 | 152 | 294 | 211 |
Corporate center: quarterly series
| CORPORATE CENTER | ||||||
| €m | Q1-22 | Q2-22 | Q3-22 | Q4-22 | Q1-23 | Q2-23 |
| Net banking income | 162 | 161 | 183 | 144 | 102 | 13 |
| Operating expenses | (829) | (179) | (237) | (220) | (788) | (58) |
| Gross operating income | (667) | (18) | (54) | (76) | (686) | (45) |
| Cost of risk | 4 | 18 | 38 | (60) | (46) | 1 |
| Share in income of associates | 3 | 2 | (1) | (31) | 2 | 0 |
| Gains or losses on other assets | 18 | 8 | 10 | (18) | 0 | 0 |
| Income before tax | (643) | 10 | (7) | (426) | (729) | (44) |
| Net income – Group share | (606) | (48) | 2 | (425) | (739) | (56) |
Attachment
