La Banque Postale Group · to (a) the accuracy, fairness or completeness of the information or (b)...

La Banque Postale Group

May 2018

INVESTOR PRESENTATION

LA BANQUE POSTALE

Disclaimer

2 May 2018 INVESTOR PRESENTATION

This document has been prepared by La Banque Postale and La Banque Postale Home Loan SFH solely for use in investor meetings. This document is confidential and is not to be reproduced by any person, nor be

distributed to any person other than its original recipient. La Banque Postale and La Banque Postale Home Loan SFH take no responsibility for the use of these materials by any person.

This presentation does not constitute a prospectus or other offering document in whole or in part. Recipients should not subscribe for any securities issued pursuant to the Offering except on the basis of information in the

prospectus in final form (including the documents incorporated by reference therein) to be issued by the Company in connection with the Offering.

Information contained in this presentation is a summary only, and is qualified in its entirety by reference to the prospectus. The prospectus will include a description of risk factors relevant to an investment in the securities to

be issued by the Company and any recipients should review in particular the risk factors before making a decision to invest.

This presentation does not constitute or form part of any offer or invitation to sell or issue or any solicitation of any offer to buy or subscribe for any security nor shall it (or any part of it) form the basis of (or be relied on in

connection with) any contract or investment decision in relation thereto. Recipients should conduct their own investigation, evaluation and analysis of the information set out in this document and should rely solely on their own

judgment, investigation, evaluation and analysis in evaluating the Company, its business and affairs.

No representation or warranty, express or implied, is given by or on behalf of the Company, the Joint Lead Managers, or any of their respective directors, officers, employees, advisers, agents, affiliates or any other person as

to (a) the accuracy, fairness or completeness of the information or (b) the opinions contained in this document, and, save in the case of fraud, no liability whatsoever is accepted for any such information or opinions.

The information and opinions contained in this presentation are provided as at the date of this document and are subject to change without notice although neither the Company nor any other person assumes any

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Certain statements included in this presentation are “forward-looking”. Such forward-looking statements speak only at the date of this document, involve substantial uncertainties and actual results and developments may

differ materially from future results expressed or implied by such forward-looking statements. Neither the Company nor any other person undertakes any obligation to update or revise any forward-looking statements.

All written, oral and electronic forward-looking statements attributable to the Company, or the Joint Lead Managers, or persons acting on their behalf are expressly qualified in their entirety by this cautionary statement.

This document and the investment activity to which it relates may only be communicated to, and are only directed at (i) persons in the United Kingdom having professional experience in matters relating to investments, being

investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the FPO); (ii) qualified investors (investisseurs qualifiés) as defined

in Articles L411-2 of the French Monetary and Financial Code and (iii) persons to whom the communication may otherwise lawfully be made (together Relevant Persons). Any investment or investment activity to which this

document relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. This document must not be acted or relied on by any persons who are not Relevant Persons.

NOT FOR PUBLICATION OR DISTRIBUTION IN THE UNITED STATES - Nothing in this presentation shall constitute an offer of securities for sale in the United States. The securities referred to in this presentation (if any)

have not been registered under the U.S. Securities Act of 1933, as amended (the Securities Act) or under the securities laws of any state of the United States , and may not be offered or sold in the United States absent

registration or an exemption from registration under the Securities Act and applicable state securities laws.

This document may contain a number of forecasts and comments relating to the targets and strategies of the La Banque Postale Group. These forecasts are based on a series of assumptions, both general and specific,

notably – unless specified otherwise - the application of accounting principles and methods in accordance with IFRS (International Financial Reporting Standards) as adopted in the European Union, as well as the application of

existing prudential regulations. This information was developed from scenarios based on a number of economic assumptions for a given competitive and regulatory environment.

The Group may be unable:

- to anticipate all the risks, uncertainties or other factors likely to affect its business and to appraise their potential consequences;

- to evaluate precisely the extent to which the occurrence of a risk or a combination of risks could cause actual results to differ materially from those provided in this presentation.

There is a risk that these projections will not be met. Investors are advised to take into account factors of uncertainty and risk likely to impact the operations of the Group when basing their investment decisions on information

provided in this document. Unless otherwise specified, the sources for the rankings are internal.

LA BANQUE POSTALE

Table of contents

3

Overview and business model

Key figures and results

Risk management

Funding and Liquidity

Capital

LBP Home Loan SFH

Appendices

INVESTOR PRESENTATION May 2018

LA BANQUE POSTALE

A solid and stable shareholding structure and a core subsidiary for Le Groupe La Poste

4

La Banque Postale is wholly-owned by La Poste, the French

Postal Service

La Poste is structured around 5 business units, dedicated to

fulfill 4 public service missions* assigned by the French State:

Universal postal services

Contribution to regional planning

Press transport and delivery

Banking accessibility

LBP is considered as a core strategic subsidiary of La Poste:

La Poste is legally bound to keep a majority stake in LBP

(Law of regulation of postal activities, 2005)

LBP is an essential contributor to La Poste income

LBP is, by law, enabled to use La Poste’s staff for its

activities

73.7%

100%

100% *

26.3%


The backbone of La Banque Postale

* Caisse des Dépôts et Consignations and its subsidiaries constitute a State-owned group at the service of the public interest and of the country’s economic development. The said group fulfils public interest functions in support of the policies pursued by the State and local authorities, and may engage in competitive activities. (Article L. 518-2 of the French Monetary Financial Code)

May 2018

LA BANQUE POSTALE

La Poste: a major multi-business services group

5 INVESTOR PRESENTATION May 2018

Le Groupe La Poste €24.110bn 2017 Revenue

€1 012m 2017 Operating profit

Services-Mail-Parcels GeoPost / DPDgroup La Banque Postale

% G

rou

p r

eve

nu

e

Ma

rke

t

Mail and parcel market,

mainly in France European CEP 1 market Retail banking in France Internet-based services

46.1% 28.1% 23.4% 2.2%

La Poste Network Servicing all business units through 17,126 retail outlets 2

A key employer in France 253,219 employees3

Strong international presence 34,484 employees3 abroad

1 CEP: Courrier-Express-Parcels 2 JV co-owned by La Poste (51%) and SFR (49%), not included in Group revenue following application of IFRS11 as of 31/12/2017: 1.38 m customers 3 Group employees in full time equivalent on average

LA BANQUE POSTALE

La Banque Postale (LBP): from La Poste’s Financial Services… into a fully fledged bank

6

1817 2000

Creation of

Efiposte

(manages sight

deposits

collected by La

Poste)

Creation of the first

postal service

mandate named

‘Reconnaissance’

31/12/2005

Efiposte

becomes

La Banque

Postale

2007

Consumer

Finance

2009 2011

Corporate

lending

La Banque

Postale

Crédit

Entreprises

La Banque

Postale

Assurances

IARD

A long history of La Poste’s

financial services But still a short history as a fully-fledged bank

2012

Lending to

French local

authorities

La Banque

Postale

Collectivités

Locales

La Banque

Postale

Financement

P&C

Insurance SFH

BPE

La Banque

Postale

Home Loan

SFH

2013 2014

Sofiap

2015

Partnership

with Aegon

AM merger

BPE/LBPGP

Since 2006, LBP has gradually acquired tools and built up a network of partnerships to accelerate its development and achieve its full

potential

Before 2006, La Poste’s financial services business was mainly focused on savings. Since, LBP developed its

product range and became a fully-fledged retail bank

• With diversified lending activities, enhancing LBP’s role in financing the French economy

• Committed to serve all clients, all over the French territory

• With strong social responsibility involvement: in 2017, LBP is the leading French bank and second-best

global bank in terms of Corporate Social Responsibility performance by the extra financial rating agency

Oekom


2016 2017

Crowdfunding

CBI

LBP

Prévoyance

Merger

Federis/

LBPAM

KissKiss

BankBank

May 2018

Asset

Management

development

Wealth

Management

development

2018

Online banking

Ma French

Bank

LA BANQUE POSTALE

La Banque Postale: a business model based on core business development and

successful partnerships

7

A very active partnership policy with major players in order to accelerate new businesses launches, relying on

safe and efficient operational process

Retail banking

Private banking / discretionary portfolio

management

Consumer finance

Public sector lending

Non-profit organizations & Corporate

banking

Life insurance

P&C

Health insurance

Contingency insurance

Insurance

Asset management for individuals

Asset management for companies

Real estate

Asset Management

Partnership in Consumer finance

FINANCEMENT

65%

owned

by LBP

Partnership in Public sector lending

Partnership in

Life insurance

20.15% owned by LBP

Partnership in

P&C

ASSURANCES

IARD

65%

owned

by

LBP

Partnership in

Health insurance

ASSURANCES

SANTE

51%

owned

by

LBP

ASSET

MANAGEMENT

25% of

Partnerships in Asset

Management

5% of

Retail Banking

70%

owned

by

LBP

35% of

14% of


40% owned

by LBP

60% of

20% 75% 5%

100%

May 2018

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCKXaq5jB_MgCFcNXGgodVP8MlQ&url=http://www.ue-finance.com/en/index.html&psig=AFQjCNEtkxcSYay_YGSCvxuawNLB0_s-6A&ust=1446923759527336

LA BANQUE POSTALE

La Banque Postale: a core focus on retail banking and a leading position on the French

banking system

8

Contribution to 2017 Net Result Before Tax

10.5 million active retail customers

13.1% market share on ordinary savings (all savings accounts

except CEL) and 22.2 % market share on the Livret A

5.5% market share on home loans outstandings*

Key figures of retail banking activity in 2017

Retail banking in France NBI in 2017 **(€bn)

*Including BPE and Sofiap

** Press releases reports, 2017

*** Sofia Study, March 2016

**** Retail banking France, Registration Document, YE 2017

LBP in the French banking environment

7,1

6,3

8,1

6,4

5,3

3,4LCL

Crédit Agricole 13,3

Caisses d’Epargne

Banques Populaires

Société Générale

BNP Paribas

LBP

6,2

7,3

6,4

6,7

13,2

Banques Populaires

Caisses d’Epargne


LCL

Crédit Agricole 22,1

BNP Paribas

LBP 17,6

Penetration rates on main current account March 2016 (%)***

Number of branches YE 2017 (m)****

8,4

1,9

2,9

3,2

4,0

7,0

1,7 LCL

Caisses d’Epargne

Crédit Agricole

Banques Populaires

BNP Paribas


LBP


Retail Banking

33%

Asset Management

Insurance (inclunding share of profits from CNP)

6%

62%

LA BANQUE POSTALE

A solid and stable shareholding structure, reflected in strong credit ratings

9

Latest rating update 2018 2018

France AA / Stable (April 2018) AA / Stable (January 2018)

Caisse des Dépôts et Consignations AA / Stable (May 2017) AA / Stable (January 2018)

Le Groupe La Poste A / Stable (October 2017) A+ / Stable (December 2017)

Latest rating update September 2017 April 2018

Long term debt A / Stable A- / Stable

Short-term debt A-1 F1

Tier 2 BBB-

La Banque Postale Home Loan SFH AAA / Stable (May 2017)

La Banque Postale’s credit ratings

LT debt ratings of La Banque Postale’s stakeholders


Fitch affirms La Banque Postale at « A- », stable outlook (04/12/2018) : « LBP’s ratings reflect it established franchise in

deposit collection and housing loans in France, fairly conservative risk appetite, good asset quality, modest profitability and sound

capitalisation, taking into account potential ordinary support from its parent La Poste (A+/Stable), France’s state-owned post

office ».

S&P affirms La Banque Postale at « A », stable outlook (09/07/2017) : « S&P Global Rating’s stable outlook on La Banque

Postale (LBP) mirrors the stable outlook ont its parent, La Poste, over the next two years. We expect LBP to remain a core

subsidiary of La Poste… in addition, we could upgrade LBP if we raise the long-terme rating on La Poste ».

May 2018

LA BANQUE POSTALE

Table of contents

10



Risk management


Capital

LBP Home Loan SFH

Appendices


LA BANQUE POSTALE

La Banque Postale at a glance

11

2017 Key financial figures

Consolidated results (in €m) YE 2017 YE 2016

Net banking income

Excluding home savings provision

5,687

5,619

5,602

5,461

Operating income 876 834

Net Income, Group Share 764 694

Cost to income ratio 81.8% 82.4%

Company profile

Created in 2006 but a long track record in financial

services

Wholly-owned by La Poste, the French Postal Service

A resilient business model

Retail Banking: 93% of NBI (YE 2017)

Recurrent revenues

Conservative risk policy

Key facts 2017

93%

3% 4%

Retail Banking Asset Management Insurance

Customer deposits

€176bn

Retail active Customers Post offices (YE 2017) NBI Split by Business

˜10.5m ˜8,400


LA BANQUE POSTALE

A quick sum up on FY 2017 results

12 INVESTOR PRESENTATION

Consolidated income statement (€ millions)

Main items in the income statement

FY 2017 FE 2016 %

Net Banking Income

excluding the home savings provision, on a like-for-like basis

5,687

5,602

+1.5%

+ 3.4 %

Operating expenses

On a like-for-like basis and excluding exceptional items

(4,619)

(4,587)

+0.7 %

-0.3%

Gross operating income 1,068 1,015 +5.2%

Cost of risk*

(192)

22 bps

(181)

22 bps

+5.9 %

0 bps

Operating income 876 834 +5.1%

Share of income from equity associates 263 191 +37.9 %

Pre-tax income 1,138 1,023 +11.3%

Net income, Group share 764 694 +10.1%

Cost-income ratio 81.8% 82.4% -0.6 point

Capital and liquidity YE 2017

CET1 fully loaded ratio: 13.4% *

Total Capital ratio: 18.2%

Leverage ratio: 4.5% **

LCR liquidity ratio: 157.4%

Business activities FY 2017 (vs 2016)

*Phased-in CRIV-CRR ratio at 13.1% **With application of the transitional measures for taking into account savings funds centralised within the Caisse des Dépôts et Consignations (CDC), pursuant to the European Central Bank decision of 24 August 2016. Excluding outstanding savings funds centralised at the CDC in accordance with the Delegated Act of 10 October 2014, the ratio is 5.3%.

Home loans outstandings: +5%

Personal loans outstandings: +2.6%

Corporates and local public sector loans outstandings: +43.5%

Ordinary savings outstandings: +0.7%

Life insurance outstandings :+0.2%

Cost of risk : 22 bp (stable)

May 2018

*retail banking cost of credit

LA BANQUE POSTALE

A growing loan portfolio with the development of new businesses

13

New home loans production during 2017: €13.5bn versus €11.2bn in 2016 (+21%)

New consumer loans production: €2.4bn versus €2.4bn in 2016 (-2.4%)

Loans granted to corporates and local public sector: €20.8bn versus 15.3bn in 2016 (+36%)

A dynamic loan production …

Outstanding loans to corporates (in €bn)

Home loans outstandings* (in €bn) Consumer loans outstandings (in €bn)

5956545350

+5%

2017 2016 2015 2014 2013

2017

5.7

2016

5.7

2015

4.5

2014

3.6

2013

2.2

0,7%


… and a growing loan portfolio

*Including BPE and Sofiap

Outstanding loans to local public sector (in €bn)

69%

6%

18%

7%

May 2018

71%

2017

15.0

2016

8.8

2015

5.3

2014

2.9

2013

1.8

5,04,94,5

4,03,4

2,6%

2017 2016 2015 2014 2013

LA BANQUE POSTALE 14

Dynamism of Insurance and Asset Management businesses

Asset management: AUM (in billions of euros)*

LBPAM: €218.1 billion in assets under management, up by 14.8% on a

like-for-like basis

Tocqueville Finance: nearly €2 billion** in assets under management, up

by 27.8%

*Assets at end of period, including Fédéris assets in 2015 **Excluding LBPAM delegation

An overall portfolio of policies nearly 4,600,000, up by 2.6%

P&C insurance (IARD): portfolio +7.9%

Health insurance: over 195,000 policies (portfolio up by 18.5%): success of

ACDS (Assurance Coups Durs Santé) and "Oui Santé" (supplementary

health insurance assistance)

Contingency insurance: over 2,710,000 individual policies in slightly

decrease (-1.5%)

Life insurance outstandings: €126bn (+0,2%), with an increase in the share

of unit-linked insurance (+13.8% in 2017)

Insurance: trend in policy portfolios (in thousands)

* Proforma 2015 in Health Stock


+14.8%

2017

218.1

2016

190.0

2015

178.3

+2.6%

Contingency

P&C

Health

2017

4,567

2,711

1,661

195

2016

4,453

2,751

1,539

163

2015*

4,220

2,758

1,353

109

LA BANQUE POSTALE

Group Net Banking Income dynamics

15

Net Banking Income up +1.5%

Positive change in NBI (+3.4%) excluding home loan savings

provision and on a like-for-like basis

Strong rise in the insurance division (+12.1%) linked to the

overall increase in premiums

Asset Management Division: +5,8% on a like-for-like basis

(Ciloger cession in 2016)


Commissions accounting for a growing portion of revenue

revenue from commissions and other +4.8% in 2017

commissions and other accounting for 44.1% of revenue

Despite low interest rates Net Interest Margin up +1.6%

May 2018

NBI evolution during 2017 driven by:

Low interest rates

Growing portion of commissions and fees

Positive effect of diversification activities

78

24

+1.5%

2017

5,687

Asset

management

-17

Insurance Retail banking 2016

5,602

5.100

2.213

2.887

2015 2017

5.251

2.319

2.932

2016

5.477

2.191

3.286

Commissions and other

NIM

43.4% 44.1%

Growing portion of commissions in NBI

40.0%

Net Banking Income NBI retail banking (excluding home loan savings provision)

(+1.6%) (-12.1%)

(+4.8%) (+1.0%)

LA BANQUE POSTALE

An ongoing effort to improve efficiency

16

2017 Operating expenses breakdown (%)

Focus on external services and other expenses (%)


Well-managed 0.7% increase in operating expenses (to

€4,619m) in 2017:

Excluding exceptional items*, operating expenses fell by

€24 million over the financial year (-0.5%)

Reflects efforts to contain expenses in a high-growth

environment

“Excellence 2020”, the third major project to improve

operational efficiency implemented by La Banque Postale,

delivered its first results in 2017:

30 main processes of the bank under review

Based on an information systems investment plan of €1 bn

over the 2015-2020 period

* Service sharing agreements signed with La Poste represent 78% of

« external services and other expenses » and two thirds of total

expenses.

May 2018

Other operating costs

26%

Back office and IT

22%

Customer advisors/salesforce

30%

Counter and ATM transaction*

22%

488 522

4,619

+0.7%

Employee benefit expenses

External services and other expenses

Amortisation and provision

Taxes and duties

2017

181

3,856

60

2016

4,587

175

3,913

11

* Reversal of provisions for litigation on regulated savings of €44 million in 2017 and

€71 million in 2016

LA BANQUE POSTALE

Table of contents

17



Risk management


Capital

LBP Home Loan SFH

Appendices


LA BANQUE POSTALE

A cost of risk reflecting a conservative risk management

18

LBP Group cost of risk (€m)

NPL and coverage ratio – Retail banking in France

LBP Group cost of risk (bps)*

Source: 2017 results, slides of the presentation * Cost of risk on loans in bp, based on average outstanding at the start of the period

Low risk appetite and stringent controls in place

Total cost of risk remained controlled at €192 million decreased, and

remained stable at 22 bps compared to the retail bank’s outstanding

loans


Source: 2017 annual reports, consolidated financial statements

Cost of risk – Retail banking in France (bps)

192181181

163

2017 2016 2015 2014

+6.1%

22222323

2017 2016 2015 2014

0 bps

LCL

1.9%

BPCE

3.3%


4.4%

BNPParibas

3.3%

LBP*

1.6%

36.5% 61.0% 91.0% 82.0% 76.0%

1715

23

30

2122

LCL Caisse

d’Epargne

Banque

Populaire

Société

Générale

BNPParibas LBP*

* Including Corporate Banking

*including total corporate banking

LA BANQUE POSTALE

Strong asset quality

19

High quality of assets

€ 71bn centralised regulated savings

€ 85bn loans to customers

€ 39bn HTM and AFS portfolios

€ 24bn short term assets and central bank

€ 12bn others


Credit risk still accounting for most of total RWAs (€bn)*

Basel 2 / 2.5 Basel 3 / CRR

* RWA computed following the standard method

0.8

30.0

8.3

1.3

42.5

8.9

2014

52.7

2013

45.2

8.5

35.9

0.8

2012 2017

Credit RWA

39.1

9.3 9.3 Operational RWA

53.9

65.2 59.6 2.0

2016

Market RWA

2015

54.2

9.2

43.8

1.2 2.1

48.2

High quality of retail lending portfolios

75.6% of the total portfolio is individual customers’ based

A progressive and controlled diversification of lending

businesses

A conservative financing approach, focusing on stringent

management

High quality securities portfolios (HTM and AFS YE 2017)

69%

84%

72%

Corporate

Bank

Public Service

72%

5%

12%

Sovereign

12%

France

Eurozone 4%

9%

87%

OutsideEurozone

AAA and AA

75%

25%

Other

LA BANQUE POSTALE

Table of contents

20



Risk management


Capital

LBP Home Loan SFH

Appendices


LA BANQUE POSTALE

Balance sheet breakdown

21

Balance sheet at 31 December 2017: €231bn, +€2bn vs YE 16

Large customers’ deposits base : €179bn

LBP “centralises” at CDC* all funds deposited on Livret A and

LDD regulated savings accounts and since H1 2016, only half of

LEP regulated savings accounts, with no interest rate or liquidity

risk (it is a pure pass-through): €71bn

Remaining part of the deposit base (not centralised to CDC)

amounting to €104bn:

is used to fund customer lending and mainly home loan

activity

is invested in a portfolio mostly classified in Held To

Maturity (dating back to before LBP was created and

mainly consisting in HQLA bonds) and a credit spread

portfolio

Since January 2018, LBP is no longer allowed to overcentralise

its Livret A deposits, but will benefit from a 10-year phase-in

period to absorb the liquidity it will receive

*CDC: Caisse des Dépôts et Consignations

LBP balance sheet at 31 December 2017(€bn)

Customer deposits/

savings €179bn

Assets out of regulated

savings centralised

at CDC €160bn


12

24

18

21

25

60

71

Others

Short term assets

and central bank

AFS portfolio

HTM portfoloio

Other loans

to customer

Home loans

Centralised regulated savings

Assets

231

14

9

14

15

104

75

Own funds and hybrids

Other Liabilities and Provisions

Repo

Debt securities

Customer deposits/savings

excluding regulated savings

Regulated savings

Liabilities

231

LA BANQUE POSTALE

Diversifying funding sources to support lending growth

22

Diversified long term wholesale funding sources (at YE 2017)


In addition to a large customer deposit base, LBP has

diversified wholesale funding sources:

Short Term:

- Interbank funding: €20bn Neu CP programme

- Repo: Large valuable portfolio of high quality

securities

Medium to Long Term:

- Covered bond programme through LBP Home

Loan SFH

- EMTN and Neu MTN programme

- Agreement with SFIL/CAFFIL to refinance French

local authorities loan production

- Access to EIB (European Investment bank) long

term funding

- Long term Repo

In order to develop its lending activity, LBP is gradually

rebalancing its funding sources by increasing its long term

wholesale funding

38%

18%

44%

May 2018

38%

18%

44%

€9.8bn

LA BANQUE POSTALE

A strong and stable liquidity position

23

Loan to Deposit ratio

Sound financing structure with a loan to deposit ratio

at 81.3%* at 31 December 2017

* Loan to deposit ratio, excluding Livret A and LEP and LDD deposits centralised at the Caisse

des Dépôts et Consignations

Group’s LCR and HQLA liquidity buffer (€bn)

LCR: 157% at 31 December 2017

- A strong liquidity buffer with 96% of level 1

assets 21.8


76%

HQLA

157%

180%

2016 2017

1.0

24.1

25.1

2017

Level 1

Level 2

81%74%75%75%67%59%

2017 2016 2012 2015 2014 2013

Loan to Deposit ratio

LCR

LA BANQUE POSTALE

Table of contents

24



Risk management


Capital

LBP Home Loan SFH

Appendices


LA BANQUE POSTALE

LBP strong capital position (1/2)

25

Prudential ratios – building capital buffers CET1 phased-in (€m)

Leverage ratio

*Change in 2016 methodology by a decsision of the ECB of 24 August 2016, La Banque Postale is authorised to

integrate gradually and linearly up to 2022 its CDC exposure.:

**Estimated, taking into account the delegated act published by the EC on Oct 2014.

11.8125% Total

Capital

13.6%

4.1%

1.2%

CRDIV :

Fully loaded CET1 of 13.4% at the end of 2017:

LBP displays a higher fully loaded ratio than its

phased-in CET1 ratio because of significant

stock of unrealised gains

SREP requirement applicable as of 01/01/2018

stands for 8.31215%

Stable FY leverage ratio 2017


SREP

requirements

8.3125% CET 1

(including P2R)

764

344

69

+4.3%

CET1

31.12.2017

8,522

Others Dividend

project

Profit CET1

31.12.2016

8,171

Total

18.2%

19.4% 18.7%

Tier 1

14.3%

15.1% 14.7%

CET1*

13.1%

13.7%

13.2%

CET1

AT1

T2

2017

18.2

13.1

1.2

3.9

2016

2015

2017

3.5%

2016

5.2% 5.2%

2015

4.6% 4.5%

5.3%

2017

Including delegated act**

Without delegated act*

*CET 1 fully loaded: 13.4%

LA BANQUE POSTALE

LBP strong capital position (2/2)

26

Ability to generate capital to support future growth

Capital management philosophy

LBP and Group LP are committed to manage

adequate solvency levels to support LBP’s strategy

as evidenced by several capital actions

Maintaining a prudent approach on capital…

Consistently above 10% CET1 since LBP creation

… under conservative solvency calculations

Assessing Pillar 1 risk under standard approach


Basel 2 / 2.5 Basel 3 / CRR

11.4%

12,7% 13,2% 14,2%

15,1% 14,3%

2011 2013 2014 2016 2017

AT1

Core Tier 1

12.7%

First capital

increase

of €860m

Capital increase of

€228m and AT1

issue of €800m

Capital increase

of €633m

LBP Tier 1 ratios and La Poste Group support

13.7% 13.6%

IFRS 9 impact

On first time application, the implementation of

IFRS 9 standard will have a limited negative impact

on La Banque Postale’s CET 1 ratio, estimated at

less than 30 bp

LA BANQUE POSTALE

MREL considerations

27

Total Loss Absorbing Capacity considerations

As an “O-SIB” and as of today, La Banque Postale is not

subject to TLAC such as defined by the FSB

La Banque Postale is subject to the MREL defined in the

BRRD (Minimum Requirement for own funds and Eligible

Liabilities)

On November 23rd 2016 the European Commission

proposed amendments on BRRD. This proposed reform

package introduces TLAC in European law and amends

MREL

La Banque Postale intends to issue at least one benchmark

per year (including SNP) + private placement

La Banque Postale foresees limited amount of debt to issue

in the future to reach MREL targets


Building capital buffers (phased-in ratios)

May 2018

1.2%

2015 2014 2016

17.0%

12.7%

1.5%

2.8%

18.7%

13.2%

1.5%

4.0%

19.4%

13.7%

1.4%

4.3%

13.1%

2017

3.9%

18.2%

Tier 2

AT1

CET 1

LA BANQUE POSTALE

Table of contents


Overview

Business model and results

Risk Management


Capital

LBP Home Loan SFH

Appendices

LA BANQUE POSTALE

78%

73%

67%

68%

64%

64%

52%

Spain

Italy

Eurozone*

Netherlands

UK

France

Germany


The French housing market

Low home ownership rate (64%)

Prudent maturity at inception: 19 years (stable compared to

2015)

Conservative credit market underwriting practices with a

cautious loan approval policy based on borrowers’ solvability

analysis rather than on the value of assets financed. Stability

of revenues and debt ratio are key issues :

In 2016 in France, the affordability ratio is stable at

30%.

A resilient French housing market and with favorable structural factors

Source : ACPR, enquête annuelle sur le financement de l’habitat July 2016

(last update February 2018)

97.9% of home loans production have a fixed rate to maturity

at YE 2016

This proportion has been increasing over the year

(96.7% in 2015)

Proportion of flexible loans is still decreasing (1.4%

in 2015, 1.2% in 2016).

Home loans secured by a guarantee provided either by a

licensed credit institution or a licensed insurance company

represent the majority of the French home loan market and

increased over the year from 56% to 58.3%.

Source : EMF, Hypostat 2017 (2016 figures, except * : 2015)

Mortgage Interest Rate %

European home ownership % (2016)

House-price index (base 100=2010)

Source : European Mortgage Federation, Q3 2017 quarterly review

Source : European Mortgage Federation, Q3 2017 quarterly review

LA BANQUE POSTALE 30 May 2018 INVESTOR PRESENTATION

The French housing market: encouraging trends and long-term favorable potential

The new home market: building permits and housing starts up

+8% and +12.5% at the end of February 2018 on 12 month

cumulative basis

Home loans at the end of November 2017 on 12 month cumulative

basis (excluding internal renegotiations): continued dynamism

within a very low-rate context

Share of renegotiations in production decreased to 11% after

the peak reached in February 2017 (39%)

France: home loans production

(in €bn excluding internal renegociations)

(source Ministère de la Cohésion des territoires, LBP)

France:

Building permits and housing starts

source : ACPR, calculs LBP

224

180

193

122

141

109

124

167

140

125

104

114106

112

0

20

40

60

80

100

120

140

160

180

200

220

240

2017

(Nov)

2016 2015 2014 2013 2012 2011

Total production

Production out of renegociations

Feb 18: 497,700

Feb 18: 427,700

Building permits Housing starts


La Banque Postale Home Loan strategy

La Banque Postale home loan business

Low risk profile customers * :

- Owner occupied home (83%)

- Maturity at inception (19.1 years)

- Fixed rate loans (99.8%)

- 54.3% of loans are guaranteed by

Credit Logement at December 2016

Loan purpose (2017 production*)

Split by guarantee (2017 production*)

Others

3%

Collateral security (mortgage, LPRF*)

37% Crédit Logement 55%

5%

Guaranteed by other institutions

22%

Repurchase 2%

Other

58% Existing home

New home 18%

Doubtful home loans (%)

Source :Banque de France, ACPR, LBP, Crédit Logement * LBP out of BPE and Sofiap

*lender’s priority right to funds

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

French market

LBP *

Crédit Logement

* Source LBP


LBP Home Loan SFH: legal framework

La Banque Postale Home Loan SFH is a French credit institution, 100% owned by

LBP, licensed by the French financial regulator (Autorité de Contrôle Prudentiel et

de Résolution – ACPR).

Minimum contractual over-collateralization (OC) of 8.1% over the 5% legally

required, using the same weightings

Under CRD IV / CRR (article 129) and LCR delegated act, AA- or better rated

covered bonds with minimum size of €500m are eligible to level 1B for LCR and

benefit from a 10% RW treatment

Segregation of cover pool assets and legal preferential claim for covered bonds

investors

Absolute seniority of payments over all creditors, no early redemption or

acceleration

Regulated covered bonds are exempted from bail-in (BRRD)

A strong legal framework and advantageous treatment for Investors

Investor informations : a dedicated website

https://www.labanquepostale.com/en/investors/debt.hlsfh.html#

ECBC Label to ensure full

transparency on the cover pool


LBP Home Loan SFH: legal framework

Namens-schuldverschreibungen

Documentation

In June 2014, La Banque Postale has established

a Programme for the issuance of German

registered covered bonds

(Namensschuldverschreibungen or “N-bonds”).

Investors in the N-bonds benefit from a strong

protection with absolute seniority over the SFH's

assets (including the coverpool), by law. They are

ranked pari passu with the other SFH's

bondholders.

The N-bonds are registered covered bonds

governed by German law.

Structure overview

La Banque Postale

(Borrower)

Cover Pool

(French Home Loans)

Investors

La Banque Postale Home Loan SFH

(Covered Bonds Issuer)

Collateralized loans Public Issuances

Private Issuances

Covered Bonds

Proceeds Covered

Bonds (OH)

Collateral

Security

Collateralized

Loans

Principal and

Interest


LBP Home loan SFH: a resilient and granular cover pool

Programme Terms

Cover Pool (ECBC template : reporting date 04/25/2018 – cut-off date 03/31/2018)

Programme size € 10bn

Rating AAA by S&P

Currency €

Listing Euronext Paris

Governing law French Law, Ability to issue German law governed Namens-schuldverschreibungen

Amount issued €5,776 bn (09/05/2018)

Maturity type Hard/Soft bullet

Registrar and paying agent for NSV LBBW

Total outstandings € 9,300bn

Number of loans 151,069

Average loan balance € 61,562

Seasoning 54,61 months

WA LTV 66,4%

Indexed WA LTV 65,6%

Owner occupancy 85,81%

Interest rates 100% fixed rates


LBP Home loan SFH: a resilient and granular cover pool

Other non working

3%

Retired

2%

Self employed 5%

Civil Servants

24%

Employees

66%

Loan purpose (2017 production*)

Buy to let

12% Second home

2%

Owner occupied 86%

Workers by category

1st lien mortgages

28%

Guarantees (CreLog)

72%

Mortgages and guarantees of the

cover pool

Others regions

48%

Rhones Alpes

11% Provence-Alpes-Côte d’Azur

10%

Aquitaine 6%

Ile-de-France (Paris included) 25%

Geographical distribution

*sources : LBP HL SFH, ECBC Template, reporting date 03/31/2018

LA BANQUE POSTALE

Covered bonds: funding issues

Issuance

Funding plans

2018: almost €1bn has already been issued, including €0.75bn of public issuance

Funding plan for the remaining part of 2018 should be a mix of private placements and one more public issuance, depending on new home

loan production

As of 07th of may 2018

Total Benchmark PP

Issuance 5,776 mn€ 4,500 mn€ 1,276 mn€

May 2018 INVESTOR PRESENTATION 36

-25

-20

-15

-10

-5

0

5

2/1/17 2/3/17 2/5/17 2/7/17 2/9/17 2/11/17 2/1/18 2/3/18 2/5/18

Mid z spread LBP 2024 vs peers

LBPSFH 2.375 01/15/2024 Corp

BPCECB 2.375 11/29/2023 Corp

ACACB 0.375 03/24/2023 Corp

SOCSFH 0.500 01/20/2023 Corp

Regular activity in public issuance since the launch of

the SFH in 2013, with 7 outstanding bonds

ECBC label, with monthly reporting on asset quality

available on our website


Crédit Logement / Mutual Guarantee Fund (MGF)

Crédit Logement share capital, YE 2017

“Guaranteed agreement reached more than €105 billion in 2017, i.e. for the 3rd consecutive year an overrun of €100 billion in guaranteed loans.”

Crédit Logement 2017 Annual report :

Crédit Logement is the market leader on the French residential property

market, guaranteeing 1 out of 3 property loans in 2017

It guarantees residential property loans for individuals, in the form of a joint

and several guarantee which aims at covering the bank against default

borrowers.

More than 500 000 operations in 2017 have benefited from a Crédit

Logement guarantee, thus allowing them to finance their property purchases

without mortgages

Crédit Logement YE 2017:

Outstanding guarantee €325.7 billion and 3 292 165 loans

Long Term rating (Aa3/stable by Moody’s and AA/low by DBRS)

Ultimate support by the French banking system

Mutual Guarantee Fund (MGF) :

The Crédit Logement financial guarantee is based on the principle

of pooling risk, with each borrower contributing to a Mutual

Guarantee Fund (MGF) :

The MGF allows repaying the bank in case the borrower

fails

MGF: €5.32 billion at YE 2017

3%

HSBC France

0%

Others Individuals

0%

17%

BNP Paribas

16% Crédit Agricole

16%

BPCE

LCL

CM-CIC

7%

SF2 - Groupe La Banque Postale

Crédit Foncier

9%

17%

9%

Société Générale / Crédit du Nord

6%

LA BANQUE POSTALE

Table of contents

38



Risk management


Capital

LBP Home Loan SFH

Appendices


LA BANQUE POSTALE

La Poste Network: a multi-business network with a banking activity


17,126 retail outlets in France o.w. 49,3% post offices (8,414)

and 50.7% partnerships

409 millions of visits

96.7% of the French population lives less than 5 km away from a

retail outlet

83% of the French population stated they had visited their post

office at least once to carry out postal or banking transactions in

2016**

51,200 employees, with more than 80% working in post offices

An exceptional granularity*

17% of Mail revenue

85% of La Poste Mobile sales

21% of Parcels revenue

100% of net collection for individuals

75% of property loans1

67% of consumer loans

of Chronopost revenue 6%

Commercial activity of La Poste Network*

• Le Groupe La Poste 2017 Registration Document

** Le Groupe La Poste 2016 Registration Document

1) Excluding social housing loans

1,122 million transactions completed at its counters and automated postal machines, i.e :

677 million bank transactions and 5.7 million banking advice appointments completed by banking advisers located in the Network, i.e:

May 2018

LA BANQUE POSTALE

Alternative Performance Measures


Alternative Performance Measures Definition and method of calculation

NBI excluding the effect of the home savings provision NBI restated for provisions or reversal of provisions on liabilities related to home savings accounts (PEL and CEL)

Operating expenses Sum of operating expenses and net depreciation and amortisation and impairment of property, plant and equipment and intangible assets

Cost-income ratio Operating expenses divided by NBI corrected for doubtful interest

Cost of risk in basis points Average commercial banking credit risk costs for the quarter divided by outstandings at the beginning of each quarter

Article 223-1 of the AMF regulations

May 2018

LA BANQUE POSTALE

Contact details

41

Stéphane Magnan [email protected]

Head of Financial Markets and Structured Finance

Dominique Heckel [email protected]

Head of Long Term Funding

Estelle Maturell Andino [email protected]

Head of Financial Communication


mailto:[email protected]














LA BANQUE POSTALE

La Banque Postale

La Banque Postale

115 rue de Sèvres

75275 Paris Cedex 06

www.labanquepostale.com

May 2018 INVESTOR PRESENTATION 42

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