2020 INTERIM RESULTS · 2021. 7. 13. · 17.3 H1 2019 H1 2020 REGULATORY OWN FUNDS (€m) 12,441...

2020 INTERIM RESULTS4 AUGUST 2020

1

FIRST-HALF 2020HIGHLIGHTS

01

LA BANQUE POSTALE 22020 INTERIM RESULTS

Key figures

3

NET BANKING INCOME

(€m)

* H1 2020 figures excluding non-recurring impact of CNP Assurances first-time consolidation entries.

2,850

3,793

H1 2019 H1 2020 reported

3,933

H1 2020 excl. impact*

1,032


468


OPERATING

PROFIT

(€m)

455

855

H1 2019 H1 2020reported

CET1 RATIO

(%)

12.2

17.3

H1 2019 H1 2020

REGULATORY

OWN FUNDS

(€m)

12,441

18,004

H1 2019 H1 2020

NBI BY SEGMENT


69%

29%

2%

91%

6%

3%

ATTRIBUTABLE

NET PROFIT

(€m)

422

4,001

H1 2019 H1 2020 reportedRetail Banking Insurance Asset Management

COST/INCOME

RATIO (%)

83.2

71.9


68.8


COST OF RISK

(€m)

41

228

H1 2019 H1 2020 reported**

211


7 bps

32bps


€3.5bn non -recurring impact of the full consolidation of CNP Assurances

4

_ Deconsolidation of previously held interest (accounted for by the equity method)

_ Reclassification to profit of La Banque Postale’s share of CNP Assurances’ unrealised gains

_ Recognition of badwill

-€1,578m

+€594m

+€4,578m

_ PPA adjustments (measurement of CNP Assurances’ assets and liabilities at fair value at 30 June 2020)

-€60.2m


Attributable net profit up 11% at €468m

5

_ Full consolidation of CNP Assurances over four months from the date of acquisition (4 March 2020), for a positive €182m impact

_ Excluding non-recurring impact of CNP Assurances first-time consolidation entries

H1 2020

First-time consolidation

of CNP Assurances

Non-recurring impact of

first-time consolidation

entries

Covid-19

impacts

_ Including the Covid-19 health and economic crisis, which reduced net banking income by €361m and added €141m to the cost of risk


A leading bancassurer better equipped to withstand the crisis

6

_ A more diversified and balanced business model:

� Reported NBI: €3,793m� Insurance division: 29.5% of NBI

_ A stronger financial structure:

� Total assets: €719bn� CET1 ratio: 17.3%� Total Capital ratio: 20.8%

At 30 June 2020

La Poste

group

100%

La Banque

Postale

CNP

Assurances

62.8%


Mobilisation since the onset of the crisis

7

Company Employees

� 25,000 employees workedfrom home

� No employees furloughedduring the crisis

� Permanent dialogue withemployee representatives todiscuss the challenges andmanagement of the health crisis

� Health and safety measures :equipment in offices, in postoffice branches and at cashmachines, awareness raisedamong teams

� Employees volunteered to keep staff numbers up in post offices

� Internal auditors mobilised tosupport operational teams indistributing government-backed loans

� Branches kept open ,giving 70% of customers accessto a branch within 3km of home

� 4,000 banking advisersworking from home

� Consumer finance:Repayment holidays of at least2 months

� Home loans: repaymentholidays of more than 4 monthsfor customers experiencingfinancial hardship

� Student loans : repaymentholidays of more than 6 months

� New student loans at 0.5%fixed rate

� Home insurance: 2 monthsfree

� Specific measures for Non-life Insurance policyholders

� Government-backed loanscheme

� Repayment and interestholidays

� Factoring: special offers andmeasures to improvecustomers’ cash position

� Leasing: payment holidays ofmore than 6 months

� €300m set aside for interest-free loans for hospitals(€200m paid out)

� €300m in financing for majorhealthcare and communityoutreach non-profits

� €1m donation to InstitutPasteur by contactlesspayment

� €27m contribution by LBP insurance division and CNP Assurances to the French National Solidarity Fund

� Support for ADIE emergencyloans to very smallenterprises

� Fund-raising drive in supportof local initiatives (forhealthcare workers, hospitalsand the homeless)

� Fund-raising operations withKissKissBankBank andGoodeed: €1.5m raisedthrough the “StrongerTogether” campaign

Retail customersBusinesses and

Local Public Sector


Ongoing transformation despite the unfavourable environment

Integration of CNP Assurances:

New governance

Insurance Asset Management

Work to integrate corporate functions

Business projects (covering the offering, IT, etc.)

LBP ASSURANCES IARD:

Buyout completed of Groupama’s 35% interest in LBP Assurances IARD

A new dynamic for LBP AM:

Creation of a multi-specialist conviction manager focused on responsible finance

Agreement signed with Natixis to merge fixed-income and insurance-related asset management businesses

Assets under management: ~€415bn

Creation of a European leader for large institutional clients

Assets under management: ~€50bn


Faster digital transformation

9

A successful first year for

with nearly 200,000 customers signed up

64%

Enhanced multi-channel access during lockdown

3m

50,000

of accounts opened in post offices

monthly visits tothe site and the app

25,000

69,725 training days

employees benefit from homeworking formulas

DIGITISATION SUPPORTING OUR TEAMS

customer calls per day

1.7m additional digital statements


RESULTS AND

FINANCIAL

STRUCTURE

02

10LA BANQUE POSTALE 2020 INTERIM RESULTS

FINANCIAL RESULTS

.A


12

Volatile markets amid crisis conditions and persistently low interest rates

Source: Global Insight, Reuters

-0.35% -0.36% -0.39%-0.47%

-0,50

-0,25

0,00

0,25

0,50

2013 2014 2015 2016 2017 2018 2019 S1 2020

EONIA still negative , at around -0.5% at end-June 2020

10-year OAT rate now in negative territory

0.82% 0.78%0.13%

-0.12%-0,50

0,00

0,50

1,00

1,50

2,00

2,50

2013 2014 2015 2016 2017 2018 2019 S1 2020

10-year OAT (average annual rate)

EONIA (average annual rate)

Volatile markets in an environment shaped by the Covid-19 health and economic crisis

CAC-40 (month-end)

5,313

4,731

5,978

4,936

3500

4000

4500

5000

5500

6000

6500

2013 2014 2015 2016 2017 2018 2019 S1 2020


13

Resilient results

CONSOLIDATED RESULTS (€ millions)

H1 2020 H1 2020 H1 2019 Change H1 2020

Reported

Excluding non-recurring impact of

CNP Assurances first-time consolidation

entries

Reported Reported

Contribution ofCNP Assurances

Excluding non-recurring impact of CNP

Assurances first-time consolidation entries(2)

Net banking income 3,793 3,933 2,850 +33% 1,105Net banking income excluding PEL/CEL effect

3,815 3,955 2,822 +35%

Operating expenses (2,710) (2,690) (2,353) +15% (343)Gross operating profit 1,083 1,243 497 x2 762Cost of risk (228) (211) (41) x5.5 2Operating profit 855 1,032 455 x1.9 763Goodwill 4,578 0 0 0

Gains and losses on other assets (1,579) (1) 0 n.m. (1)

Share of profits of equity-accounted companies

663(1) 69 136 n.m. 25

Pre-tax profit 4,516 1,100 591 x7.6 788Income tax (315) (376) (162) n.m. (273)Net profit 4,201 725 429 x9.8 514Non-controlling interests (200) (257) (7) n.m. (246)Attributable net profit 4,001 468 422 x9.5 268Cost/income ratio (%) 71.9% 68.8% 83.2% -11.3 pts 31.1%

(1) Including CNP Assurances by the equity method in January and February 2020.(2) Control of CNP Assurances was acquired on 4 March 2020 and it is therefore

fully consolidated over the last four months of the period only.LA BANQUE POSTALE 2020 INTERIM RESULTS

Resilient performances by all businesses in an environment shaped by the health and economic crisi s

14

NBI by business segment (excluding PEL/CEL effect)

Change by business segment

(€ millions)

2,568 2,624

180

1,11774

74

H1 2020

Retail Banking

InsuranceAsset Management

2,822

3,815

H1 2019

+35.2%

RETAIL BANKING

+2.2%

A resilient performance despite the Covid-19 crisis

Effect of first-time consolidation of CNP Assurances

x6.2(1)

INSURANCEStable despite volatile

financial markets

-0.1%

ASSET MANAGEMENT

x6.2(1)

+2.2%

-0.1%

(1) Excluding CNP Assurances, the Insurance division’s contribution to NBI was down 15%.


Retail Banking: higher interest margin and fee and commission income

15

Retail Banking NBI (excluding PEL/CEL effect)

Netinterestmargin

Net fees andcommissions

and otherrevenue

1,439 1,481

1,129 1,143

S1 2019 S1 2020

56%

44%

56%

44%

2,6242,568+2.2%

+1.2%

+2.9%

2020 INTERIM RESULTS

Financial results

(€ millions) H1 2020 H1 2019 %

Net banking income 2,602 2,596 +0.2

Net banking income excl. PEL/CEL effect

2,624 2,568 +2.2

Operating expenses (2,232) (2,242) -0.4

Gross operating profit 369 354 +4.4

Cost of risk (213) (41) n.m.

Operating profit 157 312 -49.8

Operating expenses more or less stable, despite additional costof managing the effects of the Covid-19 health and economiccrisis

Higher cost of risk mainly reflecting adjustments to riskparameters based on forward-looking estimates of Covid-19 risks

H1 2019 H1 2020

LA BANQUE POSTALE

Increased retail loans and savings deposits amid cr isis conditions

16

Savings depositsOutstanding loans (€bn)

61.8 64.0

5.0 5.0

20.224.2

9.712.0

S1 2019 S1 2020H1 2019 H1 2020

105.797.1 +8.8%

Real estate

Consumer finance

Businesses

LocalPublic Sector

69.5 80.3

83.6 86.7

31.631.7

126.5 124.8

10.3 10.9

S1 2019 S1 2020H1 2019 H1 2020

Demand deposits

Ordinary savings

Home savings plans

Life insurance

UCITS

335.5322.5 +4.1%

o/w BPE private banking: €3.7bn (up 15%) o/w BPE private banking: €10.1bn (up 10%)


17

Insurance division: full consolidation of CNP Assur ances

Life Insurance and Term Creditor

Insurance: Seamless integration of CNP Assurances

Insurance

(1) CNP Assurances accounted for by the equity method in January and February 2020.

(€ millions)H1 2020Reported

H1 2020 Excluding

CNP Assurances(1)

H1 2019Reported

Reported change (%)

%Excluding

CNP Assurances

Net banking income 1,117 153 180 n.m. -15

Operating expenses (427) (64) (64) n.m. 0Gross operating profit 690 89 115 x6 -23

Cost of risk (15) 0 0 n.m. n.m.

Operating profit 675 89 115 x6 -23

Non-life Insurance: Increased portfolio of policies

(€ millions) H1 2020 France ItalyEurope

(excl. France and Italy)

Latin America

Savings/Pensions 4,643 2,876 694 285 788o/w Traditional savings 2,317 2,077 171 62 8o/w Unit-linked 2,326 799 523 223 780Term Creditor Insurance 1,312 860 12 43 191Total premium income 5,955 3,736 706 328 979

Premium income: €483m In-force policies: 4.63mCombined ratio, net of reinsurance: 90.3%Death & Disability premiums: €258mP&C earned premiums: €181m (up 2.5%)

NBI (excluding contribution of CNP Assurances) down 15%,reflecting high prior-period basis of comparison

Operating expenses stable in H1

Life Insurance and Term Creditor Insurance premium income erodedby effects of the Covid-19 crisis on Savings/Pensions business in allgeographic markets.


18

Asset Management: resilient performance despite vol atile financial markets

Asset Management: Stable NBI despite decline in assets under

management Assets undermanagement(€bn)

230(1)

227NBI(€m)

H1 2020H1 2019

66 69

8 5

-0.1%74 74

LBP AM

TocquevilleFinance

Financial results

(€ millions) H1 2020 H1 2019 %

Net banking income 74 74 -0.1

Operating expenses (50) (46) +9

Gross operating profit 23 28 -15

Cost of risk 0 0 n.m.

Operating profit 23 28 -15

NII stable despite 2%(1) decline in assets under management:negative market effect and loss of fee income from certain majorinstitutional investors after Ostrum and LBP AM assetmanagement businesses combined, offset by higher investmentfund management fees.

Operating expenses up 9% due to investment in developmentconviction management business and the combination withOstrum

-2%(1)

LA BANQUE POSTALE 2020 INTERIM RESULTS(1) Compared with end-2019

Ongoing operational excellence programme

19

Ongoing operational

excellence programme

Operating expenses: More or less stable excluding effect of

scope change (CNP Assurances)

121 135

1,831 1,772

96 114

305 327

363

H1 2019 H1 2020

Depreciation and amortisation

Outside services& other expenses

Taxes other than on income

Payroll costs

Effect of consolidating CNP

(78%) (78%)o/w Service Agreements with La Poste (%)

+15.2%2,353

2,710

Cost/income ratio(%)

Operating expenses(€m)

83.2%71.9%

AUTOMATION

& DIGITISATION

_ Cap Client 3.0 deployment

TAKING INTO ACCOUNT CONSOLIDATION OF

CNP ASSURANCES

_ Customer Experience programme

_ optimised front-to-back office processes

USE OF ARTIFICIAL INTELLIGENCE

_ more personalised customer communications

2,347(1)

-0.3%(1)

(1) Based on a comparable scope of consolidation and excluding non-recurring items related to first-time consolidation of CNP Assurances.


Higher cost of risk mainly due to Covid -19 effect

20

Increase in cost of risk Focus on “Corporate” loan book

(€ millions)

H1 2020H1 2019

x5.1

NPE RATIO

1.8%

The NPE ratio attests to La Banque Postale’s good risk profile

€21.8bn

OUTSTANDING LOANS

5.9%

Higher cost of risk mainly reflecting adjustments to riskparameters based on forward-looking estimates of Covid-19risks

211

32 bps

41

7 bps

Automotive

LIMITED EXPOSURE TO THE SECTORS HARDEST HIT BY THE CRISIS

Tourism/Restaurants

2.6%


CAPITAL ANDCAPITAL RATIO

.B


A stronger financial structure

22

Capital ratio Risk-weighted assets (RWA)

(€ millions)As a percentage (%)

12.2% 13.2%

16.2%17.3% 18.2%

20.8%

CET1 Tier 1 Total capital

31 December 2019 30 June 2020

+12.7%

CET1 ratio up 5.1 points: increase in regulatory ownfunds following first-time consolidation of CNPAssurances (up €5.6bn) partly offset by growth in RWA

RWA up by €9,726m, including €7,106m due to first-timeconsolidation of CNP Assurances

76,86786,593

31 December 2019 H1 202030 June 2020


Robust ratios

23

Leverage ratio

Excluding savings funds centralised at the level of CDC, in accordance with the Delegated Act of 10 October 2014

4.56.1

31 December 2019 H1 2020

As a percentage (%)

Loan-to-deposit ratio (LDR)

90.0 82.7

31 December 2019 H1 2020

As a percentage (%)

Loan-to-deposit ratio, excluding deposits held in Livret A, LEP and LDDS accounts centralised at the level of CDC

Liquidity coverage ratio (LCR)

153 169As a percentage (%)

30 June 202031 December 2019

Leverage ratio calculated by applying theMay 2019 decision of the European CentralBank (excluding 50% of the centralisedsavings funds) was 5.4%

30 June 202030 June 2020


Robust credit ratings

24

Updated Long-term rating Outlook Short-term rating Rating by instrument

27 March 2020

15 April 2020

A Stable A-1

� Senior Preferred: A

� Senior Non-Preferred: BBB

� Tier 2: BBB-

� AT1: BB

A- Stable F1

� Senior Preferred: A-

� Senior Non-Preferred: BBB+

� AT1: BB+


A STRONGER COMMITMENT TO RESPONSIBLE FINANCE

.D


La Banque Postale, a pioneer in responsible finance

26

Priority given to

responsible

investment in asset

management

strategies

28 new SRI funds launched in H1 2020

67% of assets under management now eligible for inclusion in SRI portfolios

Financing

renewable

energy

sources

Ongoing financing of renewable energy projects

Financing the

local

authorities’

energy

transition

€700 million

worth of green loans granted in support of more than 100 projects over 12 months


Commitments recognised by ESG rating agencies

27

RATING

CDP

Sustainalytics

Vigeo-Eiris

ISS-ESG(formerly ISS Oekom)

MSCI

AGENCY

A-

87/100 (up 7 points)Best French bank, 6 th best worldwide

69/100 (up 2 points)Best bank in the “Retail and Specialised

Banking” category and 2 nd best worldwide

B- prime (stable)Best French bank, 2 nd best worldwide

AA (stable)


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La Banque Postale’s Supervisory Board, meeting under the chairmanshipof Philippe Wahl on 3 August 2020, examined the audited 2020 interimconsolidated financial statements, approved by the Executive Board ofLa Banque Postale and presented by its Chairman Rémy Weber.

This presentation constitutes La Banque Postale’s financial informationfor first-half 2020. More detailed information will be provided in theamendment to the Universal Registration Document at 30 June 2020,which will be published on the Bank's website www.labanquepostale.com

Disclaimer


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Contacts


� Annabelle Beugin [email protected]

Head of Group Financial and Institutional Communication

� Estelle Maturell Andino [email protected]

Head of Group Financial Communication

� Guillaume Allanic [email protected]

Group Financial Communication

� Gabriel Beya-Tumba [email protected]

Group Financial Communication

Financial Communication:

THANK YOU

30

2020 INTERIM RESULTS · 2021. 7. 13. · 17.3 H1 2019 H1 2020 REGULATORY OWN FUNDS (€m) 12,441...

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Transcript of 2020 INTERIM RESULTS · 2021. 7. 13. · 17.3 H1 2019 H1 2020 REGULATORY OWN FUNDS (€m) 12,441...