OREANDA-NEWS. August 06, 2014. Robust commercial performance by the core business lines

Banque Populaire and Caisse d’Epargne networks

9.6% year-on-year growth in on-balance sheet savings  and good performance in life insurance

5.6% year-on-year growth in loan outstandings

Core business lines of Natixis

Wholesale Banking: 8.3% rise in H1-2014 revenues

Investment Solutions: record-breaking net inflows of EUR17 billion in asset management and 15.9% revenue increase in H1-2014

Specialized Financial Services: 1.7% growth in revenues in the first six months of 2014, in line with the performance of the Commercial Banking & Insurance division

Robust, recurring results
Core business revenues of EUR 5.5 billion in Q2-2014, up 2.9% vs. Q2-2013 and EUR 11 billion in H1-2014, up 3.2% vs. H1-2013

Moderate cost of risk: 33 basis points in Q2-2014, down 3 basis points vs. Q2-2013

Net income attributable to equity holders of the parent[1] of EUR 828 million in Q2-2014, up 5.0% vs. Q2-2013, and of EUR 1.7 billion in H1-2014, up 10.4% vs. H1-2013

Continued strengthening of capital adequacy in Q2-2014

Common Equity Tier-1 ratio: 11.1%, i.e. +20 basis points compared with 31/03/2014

Total capital adequacy ratio: 14.5%, i.e. +70 basis points compared with 31/03/2014

Leverage ratio  > 4%

Enhanced liquidity situation

2014 MLT funding plan already complete

Short-term liquidity LCR ratio > 100%  as at June 30, 2014

Initial results of the implementation of the new strategic plan (2014 – 2017)

2014-2017 strategic plan: “Growing differently”

Revenue and cost synergies

Rollot of measures as at June 30, 2014 overall ahead of the linearized 2017 target: EUR 127 million in addition revenues between the Banque Populaire banks, the Caisses d’Epargne and Natixis (target: EUR 870 million); EUR 110 million in cost synergies (target: €900 million)

Insurance
Agreement between CNP Assurance and Groupe BPCE on the implementation of a partnership renewed for a period of 7 years, as of January 1, 2016

Savings
Annual growth in private banking assets under management: +6.1%, in line with the goals expressed in the strategic plan

Digital
Pursuit of the digital enterprise program. Launch of Dilizy and Izly to facilitate local retail payments

Other highlights of the quarter

Closure of GAPC

Disposal of non-strategic assets

Listing of almost 59% of the capital of Coface at end-June 2014, with no impact on income

Merger between two Banque Populaire banks

Plan to merge the Banque Populaire Alsace and the Banque Populaire Lorraine Champagne approved by their respective governing bodies; completion planned for November 2014
 
The Q2-13 and H1-13 results are presented pro forma to account for the transfer of BPCE Assurances to Natixis and the Q1-13 comparison base is presented pro forma of the buyback (and subsequent cancellation) by the Banque Populaire banks and Caisses d’Epargne of the Cooperative Investment Certificates (CICs) held by Natixis.