2023-08-02 17:11:00
The BPCE banking group recorded a net profit down 18% in the second quarter, hampered by the Livret A in particular. Net profit thus fell to 973 million euros, even if its decline is less than that suffered in the first quarter, according to a press release published on Wednesday. Net banking income, equivalent to turnover for the sector, for its part fell by 9% to 5.5 billion euros.
New record for Livret A with net inflows of nearly 26 billion euros
It is a result without surprise » and conforms to « nos anticipations “, reacted to AFP Nicolas Namias, chairman of the management board of BPCE.
While the fall in profit amounted to 29% in the first quarter, ” the deceleration of the decline is rather viewed favorably by the group. As in the previous quarter, BPCE was above all penalized by the rise in interest rates. Indeed, it obliges the banks to remunerate savings more. The beneficial effect of this increase, via the granting of loans at a higher rate for the bank, is slower to appear. In fact, only new loans granted are concerned.
62 billion euros
At the end of last December, the BPCE group kept in its accounts nearly 62 billion euros of Livret A and Livret de développement durable et solidaire (LDDS), enough to represent close to 2 billion euros in remuneration to be used for its customers in a full year with a rate of 3%. It is by far the first French bank exposed to this charge, ahead of Crédit Agricole and Crédit Mutuel.
The group has also calculated that excluding regulated savings, net profit is up 10%, in particular thanks to ” a strong commercial dynamic » and to « cost control “. In detail, the Retail banking and insurance (BPA) division saw its NBI decrease by 11% in the second quarter, while Global financial services, which includes the so-called “ global from the Natixis bank, saw its business grow by 2%. In this last division, revenues from wholesale banking, dedicated to large companies and institutions, grew by 7%, with strong growth in merger and acquisition activity. in a sluggish market environment “, According to the press release.
Lower cost of risk
With the rise in interest rates and economic uncertainty, mergers and acquisitions have slowed down significantly, throwing a chill on the sector. With 121 million euros in revenue in the first half (+37% over one year), this activity is still minimal compared to the whole of the BPCE group. Asset and wealth management, for its part, experienced a drop in activity of around 5% between April and June.
The cost of risk, ie the sums provisioned to deal with any unpaid debts on loans granted, was down 23% year on year in the second quarter, at 342 million euros. Nevertheless, in detail, the group took over 229 million in provisions on so-called healthy outstandings, that is to say those for which the risk of non-payment has not materialized. But on doubtful outstandings, which includes specific files with an identified risk, BPCE more than doubled its provisions, over one year, to 571 million euros.
Casino: why the distributor is far from out of the woods
The quarter was indeed marked by the collapse of the Casino group, which ended up reaching an agreement on its rescue. It plans a sharp reduction in its debt, to which most, if not all, French banks were exposed. When publishing its results last week, Crédit Mutuel Alliance Fédérale indicated that it had made provisions on this file, without disclosing the amount.
(With AFP)
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