2020 interim results · 2021. 7. 13. · 17.3 h1 2019 h1 2020 regulatory own funds (€m) 12,441...
TRANSCRIPT
2020 INTERIM RESULTS4 AUGUST 2020
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FIRST-HALF 2020HIGHLIGHTS
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LA BANQUE POSTALE 22020 INTERIM RESULTS
Key figures
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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
H1 2020 excl. impact*
468
H1 2020 excl. impact*
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
H1 2019 H1 2020 reported
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
H1 2019 H1 2020 reported
68.8
H1 2020 excl. impact*
COST OF RISK
(€m)
41
228
H1 2019 H1 2020 reported**
211
H1 2020 excl. impact*
7 bps
32bps
LA BANQUE POSTALE 2020 INTERIM RESULTS
€3.5bn non -recurring impact of the full consolidation of CNP Assurances
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_ 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
LA BANQUE POSTALE 2020 INTERIM RESULTS
Attributable net profit up 11% at €468m
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_ 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
LA BANQUE POSTALE 2020 INTERIM RESULTS
A leading bancassurer better equipped to withstand the crisis
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_ 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%
LA BANQUE POSTALE 2020 INTERIM RESULTS
Mobilisation since the onset of the crisis
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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
LA BANQUE POSTALE 2020 INTERIM RESULTS
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
LA BANQUE POSTALE 82020 INTERIM RESULTS
Faster digital transformation
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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
LA BANQUE POSTALE 2020 INTERIM RESULTS
RESULTS AND
FINANCIAL
STRUCTURE
02
10LA BANQUE POSTALE 2020 INTERIM RESULTS
FINANCIAL RESULTS
.A
11LA BANQUE POSTALE 2020 INTERIM RESULTS
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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
LA BANQUE POSTALE 2020 INTERIM RESULTS
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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
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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%.
LA BANQUE POSTALE 2020 INTERIM RESULTS
Retail Banking: higher interest margin and fee and commission income
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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
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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%)
LA BANQUE POSTALE 2020 INTERIM RESULTS
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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.
LA BANQUE POSTALE 2020 INTERIM RESULTS
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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
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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.
LA BANQUE POSTALE 2020 INTERIM RESULTS
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%
LA BANQUE POSTALE 2020 INTERIM RESULTS
CAPITAL ANDCAPITAL RATIO
.B
21LA BANQUE POSTALE 2020 INTERIM RESULTS
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
LA BANQUE POSTALE 2020 INTERIM RESULTS
Robust ratios
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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
LA BANQUE POSTALE 2020 INTERIM RESULTS
Robust credit ratings
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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+
LA BANQUE POSTALE 2020 INTERIM RESULTS
A STRONGER COMMITMENT TO RESPONSIBLE FINANCE
.D
25LA BANQUE POSTALE 2020 INTERIM RESULTS
La Banque Postale, a pioneer in responsible finance
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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
LA BANQUE POSTALE 2020 INTERIM RESULTS
Commitments recognised by ESG rating agencies
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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)
LA BANQUE POSTALE 2020 INTERIM RESULTS
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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
LA BANQUE POSTALE 2020 INTERIM RESULTS
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Contacts
LA BANQUE POSTALE 2020 INTERIM RESULTS
� 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
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