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La Banque Postale Group

May 2017 INVESTOR PRESENTATION

LA BANQUE POSTALE

Disclaimer

2 May 2017 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

responsibility or obligation to provide the recipients with access to any additional information or update or revise any such statements, regardless of whether those statements are affected by the results of new information,

future events or otherwise. All liability (including, without limitation, liability for indirect, economic or consequential loss) is hereby excluded to the fullest extent permissible by law.

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

Business model and results

Funding and Liquidity

Capital

LBP Home Loan SFH

Wrap-up


LA BANQUE POSTALE

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

4

LBP is wholly-owned by La Poste, the French Postal Service

La Poste is itself 73.7% held by the French government and 26.3% by La Caisse des Dépôts (100% held by the French State) and is structured around 5 business units :

Services-Mail-Parcels (mail and parcels, logistics solutions and local services),

GeoPost (domestic and international express services),

La Banque Postale (financial services),

La Poste Network (servicing its business units) and

Digital Services (solutions and services in the area of digital transformation, digital marketing and digital trust).

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

LA BANQUE POSTALE

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

5

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

Wealth Management

Unit

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 2006, LBP developed its product range and became a fully-fledged retail bank

• Diversification of LBP lending activities has enhanced LBP role in financing the French real economy


LA BANQUE POSTALE

La Banque Postale (LBP): A business model based on core business development and successful partnerships

6

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 assurance 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

COLLECTIVITES LOCALES

65% owned by LBP

Partnership in Public sector lending

Partnership in Life assurance

20.15% consolidated 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% consolidated by LBP

60% of

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 (LBP): a core focus on Retail banking and a leading position on the French banking system

7

Retail Banking

Retail banking Private banking /

discretionary management

Consumer finance Public Sector lending Non-profit

organizations & Corporate banking

One of the rare pure player in French retail

banking

Insurance

Life assurance Contingency P&C Health Insurance

Partnership with CNP Assurances

(20.15% consolidated)

Asset management for individuals

Asset management for companies

Real estate

LBPAM is the 4th largest asset management

company in France* (€179.2bn AUM)

Asset Management

Contribution to net income before tax YE 2016

Insurance

27%

Asset Management 7%

Retail Banking 66%

* Source: AFG: the French Asset Management Association (2015)

10.7 million active retail customers

13.5% market share on ordinary savings (all savings accounts except CEL) and 23,1% market share on the Livret A

5.6% market share on home loans outstandings**

Key figures of retail banking activity at YE 2016

Retail banking in France NBI 2016 ***(€bn)

** Including BPE and Sofiap *** Press releases reports, excluding home savings provisions, YE 2016 **** Sofia Study, March 2016 ***** Retail banking France, Registration Document or press releases, YE 2016

LBP in the French banking environment

LCL 3.1

Crédit Agricole 13.8

Caisses d’Epargne 7.2

Banques Populaires 6.3

Société Générale 8.3

BNP Paribas 6.4

LBP 5.1

22.1

Caisses d’Epargne 13.2

Banques Populaires 7.3

LCL 6.2

Crédit Agricole

Société Générale 6.7

BNP Paribas 6.4

LBP 17.6

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

Number of branches YE 2016 (m)*****

LCL 1.9

Caisses d’Epargne

Crédit Agricole 7.0

Banques Populaires

3.0

4.2

BNP Paribas

3.3

Société Générale

2.0

LBP 8.8


LA BANQUE POSTALE

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

8

Latest rating update 2016 2016

France AA / Stable (October 2016) AA / Stable (December 2016)

Caisse des Dépôts et Consignations AA / Stable (October 2016) AA / Stable (December 2016)

Le Groupe La Poste A / Stable (December 2016) A+ / Stable (Dec 2016)

Latest rating update November 2016 April 2017

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


LA BANQUE POSTALE

Table of contents


Overview



Capital

LBP Home Loan SFH

Wrap-up

LA BANQUE POSTALE

A growing loan portfolio with the development of new businesses

10

New home loans production : €11.2bn versus €12.8bn in 2015 and €9bn in 2014* (+24.2%)

New consumer loans production : €2.4bn versus €2.3bn in 2015 and €2.1bn in 2014 (+13%)

Loans granted to corporates and local public sector : €15.3bn versus €12.1bn in 2015 and €9bn in 2014 (+69.5%)

A dynamic loan production …

Outstanding loans to corporates and local public sector** (in €bn)

Home Loans

Consumer Loans

Loans to corporates and local

public sector

Home loans outstandings (in €bn)

Consumer loans outstandings (in €bn)

5654535045

3,2%

2016 2015 2014 2013 2012

+8.4%

2016

4.9

2015

4.5

2014

4.0

2013

3.4

2012

2.6

+48.2%

2016

6.5

2013

4.0

2012

0.7

14.4

2015

9.7

2014


… and a growing loan portfolio

*Including BPE and Sofiap ** Businesses and local authorities

LA BANQUE POSTALE 11

Dynamism of Insurance and Asset Management businesses

2016

180.6

2015

178.3

2014

157.6

+1.3%

Asset management : AUM (in billions of euros)*

LBPAM: €179.2 billion in assets under management, up by 1.2% on a like-for-like basis

Tocqueville Finance: €1.4 billion** in assets under management, up by 12.8%

assets under management

*Assets at end of period, including LBPGP assets in 2014 and Fédéris assets in 2015 **Excluding LBPAM delegation

An overall portfolio of policies at almost 4,452,000, up by 5.5%

P&C insurance (IARD): 520,000 new policies (portfolio +14%)

Health insurance: over 110,000 new policies (portfolio up by 50%): success of ACDS (Assurance Coups Durs Santé, or hard times health insurance) and "Oui Santé" ("Yes to Health" - Aide à la Complémentaire Santé, or supplementary health insurance assistance)

Contingency insurance: over 280,000 new individual policies (portfolio

stable)

Insurance: trend in policy portfolios (in thousands)

4,220

2,758

1,353

109

2014

3,964

2,750

1,134

80

+5.5%

Contingency

P&C

Health

2016

4,452

2,751

1,539

163

2015*

* Proforma 2015 in Health Stock


LA BANQUE POSTALE

2016: resilient results


Net Banking Income affected by the low interest rate environment: -2.5%

Operating expenses under control: -2.3%

Cost-income ratio increase contained: +0.3 points

Cost of risk stable at €181 million, down 22 bps compared to outstandings***

Consolidated income statement (€ millions)

Main items in the income statement 2016 2015 %

Net Banking Income

Excluding the effect of the home savings provision on a like-for-like basis

5,602

5,745

-2.5%

- 6.3 %*

Operating expenses

On a like-for-like basis

(4,587)

(4,693)

-2.3 %

-2.5%**

Gross operating income 1,015 1,052 -3.5%

Cost of risk (181) (181) +0.2 %

Operating income 834 871 -4.3%

Share of income from equity associates 191 207 -7.6 %

Pre-tax income 1,023 1,094 -6.5%

Net income, Group share 694 707 -1.8%

Cost-income ratio 82.4% 82.1% +0.3 points

* Reversal of provision of €142 million in 2016 against a provision allowance of €63 million in 2015; Consolidation effect (Ciloger, Fédéris) * Consolidation effect (Ciloger, Fédéris) * Cost of commercial banking credit risk

LA BANQUE POSTALE

Group net banking income impacted by the persistently low interest rate environment

13

-2.5% +1.3%

2016 published

2,578

3,024

2015 published

2,559

3,187

2014 published

2,295

3,378 Commissions and other

NIM

• Including effects of home loan savings, scope and Visa

Net Banking Income down -2.5% and -6.3% excluding effects of home loan savings provision and on a like-for-like basis in 2016

Revenue diversification improving* retail banking revenue -3.2%; insurance subsidiary revenue +6.3%; revenue from asset management subsidiaries +12.7%, supported by

the scope effect linked to Ciloger and Fédéris (-0.9% on a like-for-like basis).

Commissions accounting for a growing portion of revenue

revenue from commissions and other +0.7% in 2016; commissions and other accounting for 46% of revenue.

Low interest rates weighing on the net interest margin: -5.1 %

-2.5% +1.3%

2016

5,602

2015

5,745

2014

5,673

(+0.7 %)

(-5.1 %)

(+11.5 %)

(-5.7 %)

-2.5%

2016 published

5,602

asset management

18

insurance

12

retail banking

-173

2015 published

5,745


LA BANQUE POSTALE

An ongoing effort to improve efficiency

14

Operating expenses’ breakdown (%)

Focus on external services and other expenses (%)


€4,587m (-2.3% yoy) reflect efforts to contain expenses despite a continued development and the gradual implementation of major transformation programs :

Decrease in Retail banking operating expenses (-2.9% at €4,389m), including: - -3% for LBP SA - +6% for Retail banking subsidiaries, in support to their development

A dedicated plan focused on quality of service and based on an investment programme and a comprehensive overhaul of major processes €1bn in investments over the period 2014-2020 A programme to boost operational and commercial efficiency (reorganising salesforces ; comprehensive review of main front-to-back processes)

488469

-2.3%

Amortisation and provision

External services and other expenses

Taxes and duties

Employee benefit expenses

2016

4,587

176

3,913

11

2015

4,693

226

3,926

72

Other operating costs

22%

Back office and IT 22%

Customer advisors / salesforce

30%

Counter and ATM transactions

26%

*

*

*

* Service sharing agreements signed with La Poste represent around 80% of « external services and other expenses » and two thirds of total expenses.

LA BANQUE POSTALE

A cost of risk under control

15

LBP Group cost of risk (€m)

Group cost of risk / group gross operating income

Credit activities cost of risk (bps)*

Crédit Mutuel-

CM11 Group

Crédit Agricole Group

35%

BPCE Group

19%

Société Générale

25%

BNPParibas

23%

LBP

18% 16%

Source: 2016 Registration Documents, consolidated financial statements

-1

2016

22

2015

23

2014

23

2013

25

* 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 nearly stable (+0.2%), and commercial credit activities cost of risk low at 22 bps, despite growth in outstanding loans and reinforcement in risk coverage

181181163154

2014 2013

+0,2%

2016 2015

* Loans: customers and corporates


LA BANQUE POSTALE

Table of contents


Overview



Capital

LBP Home Loan SFH

Wrap-up

LA BANQUE POSTALE

Balance sheet breakdown

17

Balance sheet at YE 2016: €229,6 bn, +€10bn vs YE15

Large customers’ deposits base : €173bn

LBP “centralises” 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 €102bn:

is used to fund customer lending and mainly home

loan activity

is invested in a “SSA bond” portfolio mostly

classified in HTM** (dating back to before LBP was

created and mainly consisting in HQLA bonds) and

a credit spread portfolio

*CDC: Caisse des Dépôts et Consignations **Held to Maturity

LBP balance sheet at YE 2016 (€bn)

Customer deposits/

savings €173bn

13

27

19

22

76

71

Others

Reverse Repo

Short term assets and Central Bank

AFS Portfolio

HTM Portfolio

Loans to customers

Regulated savings centralised at CDC

Assets

230

2 14

7

18

15

98

75

3 Own funds and hybrids

Provisions

Other Liabilities

Repo

Debt securities

Customer deposits/savings excluding regulated savings

Regulated savings

Liabilities

230

Assets out of regulated

savings centralised

at CDC €159bn


LA BANQUE POSTALE

Strong assets’ quality

18

High quality of retail lending portfolios

81% of the total portfolio is individual customers’ based

A progressive and controlled diversification of lending businesses

A conservative financing approach, focusing on stringent management Impaired loans : 1,6%

Desensitisation to peripheral SSA** (in €bn, YE 2016) HTM and AFS portfolio breakdown and ratings (YE 2016)

0.9

0.3

0.6

2014

2.0

0.0

0.8

1.2

2013

2.5

-62%

Ireland

Spain

Italy

2016

0.9

0.0

0.9

2015

0.0

1.2

1.3

High quality of investment portfolios

** Sovereigns, Supras and Agencies, direct exposures, net carrying amount ‘including impairment) of exposure on the Bank’s own account


Corporate

5% Bank

25%

Sovereign 69% Other

28%

AAA and AA

72%

LA BANQUE POSTALE

Diversifying funding sources to support lending diversification

19

Diversified long term wholesale funding sources (at YE 2016)

Outstanding LBP Tier 2 Benchmark bonds

In June 2016, LBP priced a €500mn, 3.00% 12-year Bullet Tier 2 transaction

In Nov 2015, LBP priced a €750mm 2.750% 12NC7 Tier 2 transaction

In April 2014, LBP priced a €750mm 2.750% 12NC7 Tier 2 transaction

In November 2010, LBP priced a €750mm 4.375% 10-year Bullet Tier 2 transaction


In addition to a large customer deposit base, LBP has

diversified wholesale funding sources:

- Interbank funding: €20bn French CD programme

- Large portfolio of high quality securities,

consisting mainly of rapidly accessible

Government bonds, eligible to Repos

- Access to EIB (European Investment bank) long

term funding

- Agreement with SFIL/CAFFIL to refinance French

local authorities loan production

- Senior unsecured EMTN programme

- Covered bond programme through LBP Home

Loan SFH

In order to develop its lending activity, LBP is gradually

rebalancing its funding sources by increasing its long term

wholesale funding

Tier 2 and Senior 38%

18%

44%

Covered bonds

LT Repo €8.1bn

LA BANQUE POSTALE

A strong and stable liquidity position

20

Loan to deposit ratio (€bn)

102

Centralised regulated deposits

Customers’deposits

71

76

Customers’loans

Ratio L/D : 74%

Low reliance on wholesale funding

Sound financing structure with a loan to deposit ratio

of 74%* at YE 2016

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

Group’s LCR and liquidity buffer (€bn)

LCR: 260% at YE 2016 (estimated)

- A strong liquidity buffer with 95% of level 1 assets

2016

260%

2015

218%

Level 1

Level 2

2016

13.9

13.2

0.7


LA BANQUE POSTALE

Table of contents


Overview



Capital

LBP Home Loan SFH

Wrap-up

LA BANQUE POSTALE

LBP strong capital position (1/2)

22

2016 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 ip to 2022 its CDC exposure.: **Estimated, taking into account the delegated act published by the EC on Oct 2014.

2016

5.2% 4.6%

2015

5.2%

3.5% Including delegated act**

Without delegated act*

634

694

+14%

CET1 30.12.2016

8 171

Others Dividend project

-312

Profit

CET1 31.12.2015

7 155

+0.7

+0.4 +0.5

Total

19.4% 18.7% 17.0%

Tier1

15.1% 14.7% 14.2%

CET1

13.7% 13.2% 12.7% 2016

2015

2014

CET1

AT1

T2

2016

19.4%

13.7%

1.4%

4.3%

CRDIV :

Fully loaded CET1 of 14,3% at YE 2016 : LBP displays a higher fully loaded ratio than its phased-in CET1 ratio because of significant stock of unrealised gains

EBA’s 2016 stress tests results prove LBP’s solid resilience and ability to face an adverse context : The adverse imposed scenario would lead La

Banque Postale to reach a phased-in CET 1 ratio of 9.7% at YE 2018.


LA BANQUE POSTALE

LBP strong capital position (2/2)

23

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

Basel 2 / 2.5 Basel 3 / CRR

11.4%* 10.1%** 13,7%

12,7% 12,1% 13,2% 11,5%

14,2% 14,7% 15,1%

2011 2012 2013 2013 2014 2015 2016

AT1Core Tier 1

12.7%

First capital increase of €860m

Capital increase of €228m and AT1 issue of €800m

Capital increase of €633m

… under conservative risk regulatory measure

Assessing Pillar 1 risk under standard approach Managing with conservative regulatory hypothesis

LBP Tier 1 ratios historical data

LBP RWAs historical data (€m)

13.2%

Basel 2 / 2.5 Basel 3 / CRR


30,086

8,268 Operational RWA 8,160

35,505

25,654

1,691

2013 2012

Market RWA

2014 2011

Credit RWA

39,141 787

45,238

8,500

35,913

825

2015 2016

8,875

42,516 43,815

2,068

48,186

1,271 52,662 54,209

1,215

9,179

59,534

9,280

LA BANQUE POSTALE

MREL and TLAC considerations

24

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

Single Resolution Board has not formally communicated yet any MREL target to La Banque Postale

In this still uncertain context, La Banque Postale monitors regulatory developments pertaining to resolution

La Banque Postale also continues to build up loss absorbing instruments and considers starting issuing Senior Non Preferred debt in 2017

11,0% 12,7% 12,1% 11,4% 12,7% 13,2% 13,70%

1,8% 1,5% 1,5% 1,40% 2,8%

4,0% 4,30%

13,2%

17,0%

19,4%

2010 2011 2012 2013 2014 2015 S1 2016

18,7%

MREL As of 23/11/16 reform package

TLAC As of FSB 2015 termsheet

Covered Entities All EU credit institutions

International G-SIBs All EU credit institutions

Denominator Total liabilities and own funds

RWAs / Leverage ratio exposure

RWAs / Leverage ratio exposure

Minimum Ratio Bank specific level, no legal floor

16% initially then 18% RWAs+ Capital Buffers / 6% then 6.75% Leverage ratio

Bank specific level, capped at Max [2x(P1+P2R) ; 2 x Leverage requirement], with guidance on top

Floor for G-SIBs (TLAC level)

Eligible Liabilities

Wider definition than TLAC (senior preferred debt is eligible without limitation)

Subordinated instruments

Possibility for pari passu instruments to excluded liabilities limited to 3.5%

Closer to TLAC 3.5% limitation applies to the

G-SIBs floor Resolution authority may

require partial or full subordination for bank specific requirement

Date Starting Jan’16; phase-in period

Jan’19 No specification on phase-in period


Building capital buffers

MREL As of BRRD1

TLAC vs. MREL 2016

T2

AT1

CET1

LA BANQUE POSTALE

Table of contents


Overview



Capital

LBP Home Loan SFH

Wrap-up

LA BANQUE POSTALE 26 May 2017 INVESTOR PRESENTATION

The French housing market

Low home ownership rate (65%)

Prudent maturity at inception: 18 years (compared to 18.6 years in 2014)

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 2015 in France, the average debt ratio is 29.4%.

A resilient French housing market and with favorable structural factors

Source : ACPR, enquête annuelle sur le financement de l’habitat July 2015

96.7% of home loans production have a fixed rate to maturity at YE 2015

This proportion has been increasing over the year (92.3% in 2014)

Proportion of flexible loans which increased in 2014 (3.4%) decreased in 2015 (1.4%).

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 53% to 56%.

Germany* 53%

France* 65%

UK* 65%

Netherlands 68%

Euro zone* 67%

Italy* 73%

Spain 78%

Source : EMF, Hypostat 2016 : 2015 figures, except * : 2014

Source : Eurostat

Mortgage Interest Rate %

European home ownership % (2014/2015)

House-price index (base 100=2010) Source : European Mortgage Federation, Q4 2016 quarterly review

70

80

90

100

110

120

130

140

Euro zone

Germany

Spain

France

Italy

Netherlands

United Kingdom

1

1,5

2

2,5

3

3,5

4

2013-3 2013-4 2014-1 2014-2 2014-3 2014-4 2015-1 2015-2 2015-3 2015-4 2016-1 2016-2 2016-3 2016-4

Germany

Spain

France

Italy

Netherlands

United Kingdom


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

The new home market : building permits and housing starts up +14% and +13% at the end of February 2017 on 12 month cumulative basis

Home loans 2016 production (excluding internal renegotiations) : continued dynamism within a very low-rate context

Share of renegotiations in production decreased to 22% after the peak reached in 2015 (35%)

France : home loans production (in €bn excluding internal renegociations)

(source Coe-Rexecode, april 2016)

(source ACPR, LBP)

(source Ministère du Logement, LBP)

124 109

141

122

193 180

112 106 114

104

125 140

Total production Production out of renegotiations

fev. - 17 : 387 000

fev. - 17 : 463 400

300

350

400

450

500

550

600

650

déc.

-00

déc.

-01

déc.

-02

déc.

-03

déc.

-04

déc.

-05

déc.

-06

déc.

-07

déc.

-08

déc.

-09

déc.

-10

déc.

-11

déc.

-12

déc.

-13

déc.

-14

déc.

-15

déc.

-16

'000

s

Housing starts Building permits

France : Building permits and housing starts


La Banque Postale Home Loan strategy

La Banque Postale home loan business

Low risk profile customers * : - Owner occupied home (86%) - Maturity at inception (18.6 years) - Fixed rate loans (99.9%) - 53.8% of loans are guaranteed by Credit Logement at December 2016

Loan purpose (2016 production*)

Home loans (2016 production*)

Others

2%

Collateral security (mortgage, LPRF*)

33% Crédit Logement 53%

12%

Guaranteed by other institutions

Other

2% Repurchase

17%

New home 15%

Existing home 66%

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

Crédit Logement

LBP *

French market

* Source Dataware, 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 supervisor (Autorité de Contrôle Prudentiel et de Résolution – ACPR).

Minimum contractual over-collateralization (referred to as “Asset cover test”) of 8.1% required by rating agency / Minimum legal over-collateralization of 5%

Under CRDIV / 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/corporate_eng/investors/Debt/LBP_Home-Loan-SFH/LBP_Home-Loan-SFH.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 03/27/2017 – cut-off date 02/28/2017)

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 €4,135bn (Feb. 2017)

Maturity type Hard/Soft bullet

Registrar and paying agent for NSV LBBW

Total outstandings € 7,000bn

Number of loans 120,520

Average loan balance € 58,082

Seasoning 53.58 months

WA LTV 67.13%

Indexed WA LTV 65.54%

Owner occupancy 84.37%

Interest rates 100% fixed rates


LBP Home loan SFH : a resilient and granular cover pool

Other non working

2%

Retired

3%

Self employed

5%

Civil Servants

25%

Employees

66%

Loan purpose

Buy to let

13% Second home

2%

Owner occupied 84%

Employment type

1st lien mortgages

25%

Guarantees (CreLog)

75%

Mortgages and guarantees of the cover pool

Others regions

49%

Rhones Alpes

11% Provence-Alpes-Côte d’Azur

9%

Aquitaine 6%

Ile-de-France (Paris included) 25%

Geographical distribution

Source : LBP HL SFH, ECBC Template, reporting date 03/27/2017

LA BANQUE POSTALE

Covered bonds : funding issues

Public issuances

Funding plans

2017: €585mn have already been issued, including €500mn of public issuance

Funding plan for the rest of 2017 in covered bonds aims at maintaining activity in long term private placement. Depending on home loans production, a small benchmark transaction could be considered in the second half of the year.

33

13 september 2013 (inaugural)

9 january 2014 14 april 2015 7 january 2016 16 january 2017

Amount issued

1bn€ 750 mn€ 500mn€ 500mn€ 500mn€

Period 7 years 10 years 7 years 7 Years 8 Years

Yield 1.962%, ms+16 bp 2.436%, ms+28 bp 0.249%, ms-12 bp 0.616%, ms+5 0.4625%, ms-2

Rating AAA AAA AAA AAA AAA

Investors

120 investors (asset managers, insurance

companies, banks and central banks, and

pension funds) Germany and Austria (32%), France (24%), Benelux (12%), the

Nordic countries (10%), and the United Kingdom and Ireland

(9%).

91 investors, with a good balance

between banks, AM and insurance 34%

France, 30% German/Austria, 11% Benelux,11% Asia and others

14%

German and Austrian accounts took the majority

with 49%, followed by France with 25%, Asia with 10% and

BeNeLux with 9%.

France 40%, Germany 39%, Asia 10%, Nordics 5%, Swiss 2%, Others

4%.

Germany 45%, France 32%, Middle

East 9%, Nordics 5%, Benelux 3%,

Asia 2%.

1/11/15 1/9/15

-12

-18

-16

-14

-10

-8

-6

-4

-2

0

2

4

6

8

10

1/5/17 1/7/16 1/9/16 1/11/16 1/1/17 1/3/17 1/5/16 1/3/16 1/1/16

LBPSFH 2024

LBP SFH 2020

LBPSFH 2022

LBPSFH 2023

LBPSFH 2025

Mid z-spreads of public issuances LBPHL SFH


Crédit Logement / Mutual Guarantee Fund (MGF)

Crédit Logement share capital, YE 2015

“[…] Crédit Logement enjoyed an exceptionally good year with more than €114 billion in guarantees issued, of which 44% relating to loan refinancing.”

Crédit Logement 2015 Annual report :

Crédit Logement is the market leader on the French residential property market, guaranteeing approximately one out of three property loans in 2015 (out of renegotiations).

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 7 million borrowers have already benefited from a Crédit Logement guarantee, thus allowing them to finance their property purchases without mortgages

Crédit Logement YE 2015:

Outstanding guarantee €280.34 billion and 3,169, 005 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 : €4.57 billion at YE 2015

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


Overview



Capital

LBP Home Loan SFH

Wrap-up

LA BANQUE POSTALE

La Banque Postale at a glance

36

2016 Key financial figures

Strong capital and high liquidity at YE 2016

Consolidated results (in €m) YE 2016 YE 2015

Net banking income* Excluding home savings provision

5,602 5,461

5,745 5,809

Operating income 834 871

Net Income, Group Share 694 707

Cost to income ratio 82.4% 82.1%

CET1 phased-in ratio: 13.7% **

Tier 1 ratio: 15.1%

Total Capital ratio: 19.4%

Estimated leverage ratio: 4.6% ***

Estimated LCR liquidity ratio: 260%

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: 94% of NBI (YE 2016) Recurrent revenues Conservative risk policy

Sound ratings: A (stable outlook) by S&P A- (stable outlook) by Fitch

Key facts 2016

94%

3% 3%

Retail BankingAsset ManagementInsurance

Customer deposits €173bn

Retail active Customers

Post offices (YE 2016)

NBI Split by Business

˜10.7m

˜8,900

*scope effect €20m (Ciloger and Federis) **Fully loaded ratio of 14.3% ***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 ratio of 5% taking into account the delegated act published by the European Commission on Oct 2014.


LA BANQUE POSTALE

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


17,159 retail outlets in France o.w. 51.6% post offices (8,835) and 48.4% partnerships (versus 46% in 2015)

436 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

53,700 employees, with more than 80% working in post offices

An exceptional granularity*

17% of Mail revenue

80% of La Poste Mobile sales

25% of Parcels revenue

100% of net collection for individuals

80% of property loans1

67% of consumer loans

of Chronopost revenue 7%

Commercial activity of La Poste Network*

• Le Groupe La Poste 2016 Registration Document 1) Excluding social housing loans

1,175 million transactions completed at its counters and automated postal machines, i.e :

622 million bank transactions and 7 million banking advice appointments completed by banking advisers located in the Network, i.e :

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

LA BANQUE POSTALE

Contact details

39

Stéphane Magnan [email protected]

Head of Financial Markets

Frédérique Delavaud [email protected]

Head of Financial communication

Dominique Heckel [email protected]

Head of Long Term Funding


mailto:[email protected]

















LA BANQUE POSTALE

La Banque Postale

La Banque Postale

115 rue de Sèvres

75275 Paris Cedex 06

www.labanquepostale.com