Mediterranean Bank Network News


Results for the first quarter of 2016 of Groupe BPCE

BPCE France

Tuesday, 10 May 2016


09/05/2016

Results for the first quarter of 2016 of Groupe BPCE

Results for the first quarter of 2016: Good commercial performance against a background of low interest rates and adverse market conditions. Net income attributable to equity holders of the parent stable at €872m

Continued growth dynamic pursued by the core business lines

Banque Populaire and Caisse d’Epargne retail banking network

  • Buoyant year-on-year growth in loan outstandings of +4.2% after 2 years of higher than market growth and growth in on-balance sheet deposits & savings +3.0%
  • Growth in the customer base with priority targets: +157,000 principal active customers using banking services over one year

Insurance

  • Strong momentum in life insurance with gross inflows up +23% vs. Q1-15
  • Growth in portfolios of non-life insurance contracts +10% vs. March 31, 2015

Core business lines of Natixis

  • Investment Solutions: assets under management of €776bn at end-March 2016, oriented downward following a negative foreign exchange effect, disposal of affiliates and slight outflows (-€1bn); continued increase in margins
  • Corporate & Investment Banking: proportion of commissions in the revenues from structured financing maintained at a high level (37% in Q1-16) and continued strong momentum in Equity derivatives
  • Specialized Financial Services: good performance with premiums issued up +15% vs. Q1-15 (Sureties & financial guarantees), factored turnover up +10%, and strong growth in new production of real-estate leases

Results stable despite the environment characterized by low interest rates

  • Decline in core business line revenues to €5.7bn (-3.1%): commercial performance of retail banking limiting the negative impact of interest rates on net interest income and stability in Natixis core business lines revenues
  • Tight control over operating expenses, excluding increase in the estimated contribution to the Single Resolution Fund (SRF): +0.4% vs. Q1-15 (SRF: €218m in 2016, i.e a €112m increase vs. 2015)
  • Decline in the cost of risk to a moderate level: €372m (-24.6%), or 24bps (vs. 32bps in Q1-15)
  • Attributable net income generated by the core business lines [: €1bn in Q1-16, -1.2% vs. Q1-15
  • Attributable net income (excluding estimated increase in the SRF €680m, +5.4% vs. Q1-15

Continued strengthening of the balance sheet

  • Common Equity Tier 1 ratio (or CET1 [) of 13.3% at March 31, 2016 (+10pbs vs. Dec. 31, 2015)
  • Total capital adequacy ratio, of 17.3% (+30pbs vs. Dec. 31, 2015)

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[1] Q1-15 pro forma (cf. the note on methodology at the end of this press release) ; unless specified to the contrary, all changes use the same reference base of March 31, 2015

[2] Excluding non-economic and exceptional items, and after restating to account for the IFRIC 21 impact

[3]  Core business lines: Commercial Banking & Insurance, Investment Solutions, Corporate & Investment Banking, and Specialized Financial Services 

[4] Entities included: CNP Assurances, Natixis Assurances, Prépar Vie (gross inflows held by the Banque Populaire and Caisse d’Epargne retail banking networks)

[5] Excluding non-economic and exceptional items

[6] €102m increase in net income attributable to equity holders of the parent vs. Q1-15 

[7] Estimate at March 31, 2016 – CRR/CRD4 4 without transitional measures after restating to account for deferred tax assets on tax loss carryforwards

[8] Including circa €1.6bn in Tier-2 issues completed after March 31, 2016

Read more :

http://www.groupebpce.fr/en/content/download/13569/250129/version/26/file/Groupe%20BCPE%20-%20T1-16_English.pdf

http://www.groupebpce.fr/en/content/download/13565/250096/version/21/file/20160510_BPCE_CP_Résultats_T1%202016_GB.pdf


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

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

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

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

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