Groupe BPCE reports robust Q2 and H1 2024 performance

Groupe BPCE has announced a strong financial performance for the second quarter and first half of 2024, marking a significant rebound in net banking income (NBI) and solidifying its strategic growth trajectory. The group, one of Europe’s largest banking institutions, recorded a 12% increase in reported net income for H1 2024, reflecting the success of its commercial activities and strategic acquisitions.

Financial highlights

Groupe BPCE saw a year-over-year (YoY) increase in quarterly NBI. The group’s Q2 2024 NBI rose by 3% compared to Q2 2023, reaching €5.6 billion. This rebound was driven by the strong performance of its retail banking networks, specialised financing, and global businesses. Reported net income for Q2 2024 stood at €806 million.

The first half of 2024 showcased Groupe BPCE’s resilience and growth, with NBI reaching €11.4 billion, up 1% YoY. The group’s gross operating income surged by 11%, underpinned by a positive jaws effect, while reported net income rose to €1.7 billion, a 12% increase compared to H1 2023.

Groupe BPCE maintained robust solvency and liquidity levels, with a Common Equity Tier 1 (CET1) ratio of 15.6% and a liquidity coverage ratio (LCR) of 149% at the end of June 2024.

Ratings and strategic developments

The group’s strong financial performance has been recognised by rating agencies, with S&P upgrading its long-term credit rating to A+ with a stable outlook on July 15, 2024. This follows Moody’s confirmation of its A1 rating, and similar affirmations from R&I and Fitch, all of which maintain stable outlooks.

Groupe BPCE has also been active in pursuing strategic acquisitions and partnerships as part of its Vision 2030 strategic plan. Notably, the group is moving forward with its planned acquisition of Société Générale Equipment Finance, aiming to become a European leader in equipment lease financing. The integration process is on schedule, with approval requests submitted.

Additionally, Groupe BPCE announced on July 22, 2024, that Caisse d’Epargne Hauts de France is set to acquire Belgium’s Nagelmackers bank. Other strategic moves include investments by Natixis Partners in Tandem Capital Advisors (Belgium) and Emendo Capital (Netherlands), further expanding BPCE’s M&A capabilities.

In May, Natixis Interépargne signed a memorandum of understanding with HSBC to acquire HSBC Epargne Entreprise, strengthening its position in employee savings and pensions in France. BPCE also announced a joint venture with BNP Paribas in June to create France’s leading payment processing entity, with ambitions to become one of the top three players in Europe.

Sector performance

The group’s Retail Banking & Insurance division continued to grow, with 452,000 new clients added in H1-24. Q2-24 saw a 2% YoY increase in NBI, driven by asset repricing and higher commissions. Loan outstandings grew by 1% to €718 billion, while client deposits increased by 3% YoY to €676 billion. The insurance sector also performed well, with gross life insurance inflows of €8.3 billion in H1-24.

Global Financial Services saw strong revenue growth in Q2-24, with a YoY increase of 8%. Corporate & Investment Banking recorded a 7% YoY increase in NBI, driven by strong performances in global markets, finance, and investment banking. Asset & Wealth Management also reported significant growth, with assets under management reaching €1,232 billion at the end of June 2024.

“The upgrading of the Group’s rating, now unanimously ranked in the A+ category for its long-term credit ratings, confirms the relevance of the financial management decisions made over several months and Groupe BPCE’s ability to implement its new strategic ambitions as presented towards the end of June in the ‘VISION 2030’ project.”

Namias emphasized the group’s continued focus on innovation, external growth, and partnerships, which are expected to drive further success as Groupe BPCE moves forward with its Vision 2030 plan.