Results for the first quarter of 2018 of Groupe BPCE
Slight increase in net banking income to €6bn
- Retail Banking & Insurance :
Limited decline in net banking income (-2.9% year-on-year) to €4.2bn, with good resilience from the commission-earning activities pursued by the Insurance and Payments business lines in particular, and despite the persistent impact of low interest rates on the net interest income generated by the Banque Populaire and Caisse d’Epargne retail banking networks
- Asset & Wealth Management:
Net banking income of €777m, representing strong year-on-year growth of 20.2% at constant exchange rates
- Corporate & Investment Banking:
Despite the impact of unfavorable foreign exchange rates, net banking income of €938m, up 1.3% year-on-year at constant exchange rates
NET income attributable to equity holders of the parent up marginally to €955m(1)
Despite the sharp increase in regulatory contributions, attributable net income rose by 0.9% year-on-year
Extremely high levels of capital adequacy and loss-absorbing capacity
CET1 (2)(3) and TLAC (2)(3) ratios of 15.1% and 21.5% respectively at March 31, 2018
Limited impact of the first-time application of IFRS 9 on the Group’s CET1 (2) ratio: -17bps
On May 17, 2018, the Supervisory Board of Groupe BPCE convened a meeting chaired by Michel Grass to examine the Group’s financial statements for the first quarter of 2018.
François Pérol, Chairman of the Management Board of Groupe BPCE, made the following statement: Today, the Group is announcing strong results for the first quarter of 2018. Against a background of very low interest rates and increased competition, the Retail Banking division has limited the decline in its revenues to 2.9% thanks to the dynamism of its lending and deposits & savings activities, and to the development of new growth drivers with Specialized Financial Services and Insurance. Natixis has reported good results, with enhanced revenues in all its business lines at constant exchange rates, including extremely vigorous growth (+20.2%) in the Asset & Wealth Management division. Thanks to our tight control over operating expenses and a moderate cost of risk, we have managed to keep the Group’s net income attributable to equity holders of the parent steady at 955 million euros. The strength of our business model is also reflected in the extremely satisfactory levels of capital adequacy and loss-absorbing capacity. I am very proud to have been involved for almost a decade in the creation and development of Groupe BPCE, which now possesses all the strengths it needs to bring its TEC2020 strategic plan to a successful conclusion. I am entirely convinced that Laurent Mignon, with the support of all our people, will be able to provide the Group with the energy it requires to pursue its ongoing growth.