Institutional presentation of Groupe BPCE
APRIL 2014
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 2
Contents
1. A major cooperative banking and insurance group
2. Groupe BPCE, a unique organizational structure
3. An ambition for 2017: "Another way to grow"
4. The Group's business lines
5. Investing in human talent
6. Innovation at the service of all our customers
7. A socially responsible institution
8. Sponsoring & corporate philanthropy: shared values
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 3
1. A major cooperative banking and insurance
group
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 4
2nd largest banking group in France at the service of all types of customers, with a strong local presence
1. A major cooperative banking and insurance group
Key figures
36 million customers 8.8 million cooperative shareholders
115,000 employees
8,000 branches
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 5
● The Banque Populaire banks and Caisses d’Epargne, 50:50 shareholders of Groupe BPCE 19 Banque Populaire banks, including CASDEN
Banque Populaire and Crédit Coopératif 17 Caisses d’Epargne They are local banking institutions administered by boards representative of the economic and social life of their respective regions and organized on a human scale, close to their customers and cooperative shareholders.
● BPCE, an unlisted central institution responsible for
defining the Group’s strategy, implementing shared policies, and playing an oversight role.
● Subsidiaries responsible for the business activities that the Banque Populaire banks and Caisses d’Epargne cannot pursue alone for reasons of critical mass, technical expertise, or international presence.
A strong cooperative base
At the service of the different regions 20% of the funds used to finance the French economy are provided by banks belonging to the Group
Owned by its cooperative shareholders 8.8 million cooperative shareholders own 100% of their bank’s capital
Committed to long-term, local relations Local presence at the heart of the regions; the commitment of long-standing relationships
1. A major cooperative banking and insurance group
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 6
1. A major cooperative banking and insurance group
Moderate risk profile Major gains in capital
adequacy
Key figures 2013 % change 2013/2012
Strong commercial dynamism of the core business lines*
Core business lines revenues
Commercial Banking & Insurance revenues
Natixis core business lines revenues
€21.6bn
€15.2bn
€6.4bn
+4.6%
+4.5%
+5.0%
Major contribution to financing the French economy
Loan outstandings (gross) - Groupe BPCE
o/w Banque Populaire and Caisse d’Epargne
€591bn
€366bn +6.1%
Robust 2013 results
Attributable net income**
Cost/income ratio of the core business lines
Cost of risk
€2.9bn
65.9%
35 bp
+26.2%
-2.3 pts
-2 bp
Continuous improvement in capital adequacy
Common Equity Tier-1 ratio under Basel 3 10.4% +150 pts
A detailed presentation of the 2013 annual results is available on www.bpce.fr
Group’s robust financial performance
* Core business lines: • Commercial Banking and Insurance • Wholesale Banking • Investment Solutions • Specialized Financial Services
** excl. revaluation of the Group’s own debt
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 7
2. Groupe BPCE, a unique organizational structure
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 8
2. Groupe BPCE, a unique organizational structure
A three-tier structure
Two cooperative retail banking networks,
shareholders of BPCE
19 Banque Populaire banks 17 Caisses d’Epargne
A central institution at the service of the Group
BPCE • Defines the policy and strategic objectives of the Group and
its networks
• Oversees the Group with respect to its liquidity, capital adequacy, risk management and internal control procedures
• Represents the Group on regulatory bodies and negotiates national or international agreements
• Coordinates sales and employment policies
A network of subsidiaries
Natixis – A financial institution listed on the Paris Bourse Crédit Foncier Banque Palatine BPCE International et Outre-mer, etc.
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 9
2. Groupe BPCE, a unique organizational structure March, 31, 2014
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 10
3. An ambition for 2017
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 11
3. An ambition for 2017
Constantly improve our response to customers’ needs and expectations while reasserting the Group’s distinctive identity as a cooperative banking group
Net banking income > €23bn 1 million additional principal active
customers using local banking services Cost/income ratio < 65% Net income of €4bn Common Equity Tier 1 capital adequacy
ratio under Basel 3 > 12% Overall capital adequacy ratio > 15% in
2017 at the latest
A 2014-2017 strategic plan for development and transformation
To realize this ambition and achieve these objectives, Groupe BPCE has set itself 4 investment priorities and is implementing 3 levers for action
A detailed presentation of the strategic plan is available on www.bpce.fr
Ambition
Targets for 2017
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 12
Digital Creating leading banks for one-to-one and online relations
3. An ambition for 2017
Insurance Becoming one of the leading bancassurance specialists in France
International Speeding up the pace of the Group’s internationalization
Bank Reasserting the Group as a major player in savings to better finance its customers
Reasserting the Group’s
identity as a cooperative
banking institution
Investing in the individual talents of the
Group’s employees
Enhancing collective efficiency
4 investment priorities
3 le
vers
for
act
ion
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 13
4. The Group's business lines
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 14
An extensive range of banking and insurance products Management of everyday banking services, credit, e-money solutions, private banking and wealth management, receivables management, savings, retirement planning, tax optimization, investment, life and non-life insurance, provident insurance, credit insurance, etc.
A major role in real estate financing with Crédit Foncier and its subsidiary, SCF
A significant presence in overseas French territories and in the international arena in Europe, the Mediterranean basin, sub-Saharan Africa, and the Indian Ocean via the banks belonging to BPCE IOM and BRED Banque Populaire
Commercial banking and insurance
N°1 BANK FOR SMEs
N°2 BANK FOR INDIVIDUALS
N°2 BANK FOR SELF-EMPLOYED PROFESSIONALS AND ENTREPRENEURS
4. The Group's business lines
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 15
4. The Group's business lines
Wholesale Banking Advisory services and support provided to companies, institutional investors, insurance companies, banking institutions and entities in the local public sector. A diversified range of financing solutions and access to the capital markets.
Investment Solutions 4 activities: asset management, insurance, private banking and private equity. Management and distribution structures tailored to the specific nature and regulations of the different markets (United States, Europe, Asia).
Specialized Financial Services Specialized financing services (factoring, sureties and guarantees, consumer finance, leasing solutions, cinema and audiovisual financing) and financial services (employee savings schemes, payments, securities services).
Corporate & Investment Banking, Asset Management and Financial Services with Natixis
15th LARGEST ASSET MANAGER WORLDWIDE
N°1 KEEPER OF EMPLOYEE SAVINGS ACCOUNTS
N°1 ON THE EURO PRIMARY BOND MARKET FOR FRENCH CORPORATES Source: Cerulli Study, july 2013
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 16
Banque Populaire
The bank that encourages action, by reassuring and supporting its customers in the realization of their projects, over the long term.
Strong positions. More than 1 million professional customers, the banks for 1 in 3 tradespersons and 1 in 4 franchisees, leader for loans for new business creation.
Key figures 19 Banque Populaire banks (including CASDEN Banque Populaire and Crédit Coopératif)
8.9 million customers 3.9 million cooperative shareholders
3,330 branches
17 online branches
€207bn in savings deposits
€166bn in loan outstandings
€6.4bn in net banking income
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 17
Caisse d’Epargne
Strong positions. The Caisses d’Epargne boast leading positions in financing the public sector, social housing and the social and solidarity-based economy. They also enjoy reference status for services to individual, professional and corporate customers.
Banking. New definition. Serving customers in their own best interests thanks to innovative services, sound advice and a high-quality, long-term relationship.
Key figures 17 Caisses d’Epargne
26 million customers 4.9 million cooperative shareholders
4,200 branches
17 on-line branches
€370bn in savings deposits
€201bn in loan outstandings
€7bn in net banking income
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 18
Natixis
Key figures More than 15,000 experts in 36 countries (excl. Coface)
€7.2bn in net banking income
€1.1bn in net income attributable to equity holders of the parent
Natixis, a company listed on the Paris Bourse, provides long-term support throughout the world to its clientele of companies, financial institutions and institutional investors as well as to the customers of the Group’s retail banking networks (individual, professional and small-business customers)
Natixis pursues its activities in three geographical regions: North & South America, Asia/Oceania, and Europe, Middle East and Africa (EMEA)
A detailed presentation of the 2013 annual results is available on www.natixis.com
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 19
5. Investing in human talent
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 20
5. Investing in human talent
An ambitious employee relations policy…
Attracting talented people and winning their loyalty
Developing the skills and employability of our people
Anticipating change and helping our employees to adapt
Promoting openness and equal opportunities
Creating the conditions for a constructive social dialogue … given concrete expression through structural measures Development of a range of innovative training programs
Roll-out of the JUMP initiative providing customized career guidance
Coordination of a comprehensive managerial development program
Promotion of gender equality throughout the chain of command
Renewal of industry-wide disability agreements in late 2013
Launch of the first Group-wide collective pension plan in late 2012
Committed HR management for collective success
Key figures
115,000 employees
3,418 new recruits on
permanent contracts
2,597 employees on work-
study contracts
€200m invested in training
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 21
Managers central to success
> The success of the strategic plan depends upon the cohesion, solidarity
and efficiency of the entire chain of command, from the senior
executives down to managers in local branches.
Support given to the Group’s individual employees
> Our employees express legitimate expectations that must be reconciled
with the stringent requirements of efficiency and the quality of service
provided to customers.
Enduring performance at our customers’ service
> Helping employees to adapt to change, promoting collaborative
management, giving tangible expression to the cooperative dimension,
etc. The HR roadmap must adopt the same approach to employee
relations as it does to customer relations.
HR excellence at the service of the Group’s strategy
2017 targets
Management + 20 points for the sense of individual recognition enjoyed by the Group's managers
In-house mobility 100 % of vacancies published at the job center
Gender equality 1 out of 4 One senior manager out of four is a woman
Digital training x 2 As of 2014, doubling the number of employees trained in virtual classrooms (20,000)
5. Investing in human talent
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 22
6. Innovation at the service of all our customers
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 23
6. Innovation at the service of all our customers
Dilizi turns smartphones and tablet devices into “digital cash registers” enhanced with integrated services.
Dilizi The new check-out solution using mobile phones
V.me by Visa Reinventing online payments The first universal, pan-European digital wallet accessible to all consumers and all online traders to facilitate online shopping throughout Europe with complete peace of mind.
Transfer cash between individuals, buy goods or services in a local shop, pay a professional’s fees, shop online… instantaneously and free of charge.
S-money To pay, send and receive money instantaneously from a smartphone
Offering the best of both “physical” and “digital” worlds
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 24
7. A socially responsible institution
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 25
7. A socially responsible institution
Human resources A major force in recruitment
A real commitment to gender
equality
A socially responsible, and socially committed, purchasing policy
Playing a major role in favor of local economic growth
Economy Financing the local economy in all
French regions Supporting the social economy Key player in local employment:
87% of the Group’s suppliers are SMEs (accounting for 40% of aggregate procurement in 2013)
2013 2012
Sensitive urban areas served by the Group or close to Banque Populaire or Caisse d’Epargne branches
36% 33%
Total amount of loans providing support for the social economy granted in 2013
€0.8bn €0.7bn
2013 2012
Number of new recruits on permanent contracts* 3,418 3,992
Number of recruits on work-study contracts 2,285 2,169
* Including work-study contracts
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 26
7. A socially responsible institution
Environment Providing funding for energy transition
At a local level:
1st French bank chosen by the European Commission to improve the distribution of eco-loans in liaison with local authorities
Among its customers: eco-loans for individual and professional customers
Reduction of the Group’s carbon footprint
2013 2012
Eco-loan outstandings of the Caisses d’Epargne and Banque Populaire banks
€2bn
€2bn
Group entities having completed a carbon audit 98% 82%
2013 2012
Assets under SRI and solidarity-based management in France
€13.4bn
€13.9bn
Solidarity-based employee savings €1.4bn €0.9bn
Number of microloans under management and their aggregate amount
13,378 microloans for €91.1m
12,470 microloans for €85.5m
Societal action Investing in social solidarity: one of the
leading asset managers specializing in SRI and solidarity-based funds in France and Europe
Financing social solidarity: a leader in solidarity-based savings in France and No.1 French banking group for micro-credit
Demonstrating a strong commitment to environmental protection and social solidarity
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 27
8. Sponsoring & corporate philanthropy: shared values
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 28
8. Sponsoring & corporate philanthropy: shared values
Working through the Votre coach by Groupe BPCE scheme, the Group gives expression to the men and women who accompany the athletes to their highest level: the sports coaches www.votrecoach.fr
Partner of the French Olympic team
Caisse d’Epargne L’Esprit Glisse skiing and snowboarding
Caisse d’Epargne L’Esprit Running jogging
Banque Populaire The Bank of the World of Sailing
Natixis and rugby
CASDEN Banque Populaire and women’s handball
Exclusive banking partner of the French National Olympic and Sporting Committee (CNOSF) since 2010, Groupe BPCE shares the same values as the Olympic movement. Next major competition: Rio 2016
The Group’s passion for all types of sport
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 29
8. Sponsoring & corporate philanthropy: shared values
Supporting talent, promoting social solidarity
With a total of 5,500 employees, this foundation granted the official seal of State approval, combats all forms of dependency related to old age, infirmity, or disability.
This Foundation focuses its action on the development and promotion of the social and solidarity-based economy.
Natixis supports institutions and associations in the realization of their cultural, research and solidarity-based projects.
The Foundation supports personal life projects in the areas of music, disability, and the arts & crafts for periods of between one and three years.
The different Groupe BPCE companies focus their action on long-term initiatives providing support at a local level. These actions reflect the diversity of their customers, employees and of society as a whole.
The Caisses d’Epargne Foundation for Social Solidarity
The Banque Populaire Foundation
The Crédit Coopératif Foundation Natixis, a committed patron of the arts, science and social action
PRESENTATION OF GROUPE BPCE – Corporate Communications Department APRIL 2014 30