Watch Live

Tweet TWEET

BPCE : Groupe BPCE: full-year 2012 results

                  BPCE : Groupe BPCE: full-year 2012 results

Paris, February 17, 2013

Groupe BPCE: full-year 2012 results

l Operation to simplify the Group's organizational structure: projected
buy-back by the Banque Populaire banks and the Caisses d'Epargne, for a total
of €12.1 billion^[1], the Cooperative Investment Certificates (CCIs) held by
Natixis in the capital of the Banque Populaire banks and Caisses d'Epargne,
followed by the cancellation of these certificates.

l Net income attributable to equity holders of the parent (excluding
revaluation of the Group's own debt) of €2.3 billion: solid results in a tight
business environment.

At the end of the "Together" strategic plan launched in 2010 - which has
enabled the Group to return to profit, to reinforce its capital adequacy and
liquidity, to reduce its risk profile, notably regarding Natixis, and to make
Natixis a fully-fledged member of the Group via the development of synergies
with the Banque Populaire banks and the Caisses d'Epargne - Group BPCE is
announcing major plans to simplify its organizational structure.

l Projected simplification of the Group's organizational structure

> Plan for  the Banque Populaire  banks and the  Caisses d'Epargne to  buy 
back the Cooperative  Investment Certificates  (CCIs) held by  Natixis in  the 
capital of the mutual banks, in an amount of €12.1 billion^1

>  A  threefold  objective:   projected  simplification  of  the   Group's 
organizational structure, clearer  appreciation of  Natixis' performance,  and 
optimization of the allocation of equity within the Group

> An operation that creates  value for Natixis' shareholders:  exceptional 
payment^[2] of  dividends  in an  amount  of  €2 billion  (€0.65  per  share), 
improvement of the  cost/income ratio^[3], enhanced  ROTE^3 (from 8.1%  before 
the operation to 8.5% after the operation)

> No impact  on Groupe  BPCE results and  marginal impact  on its  capital 
adequacy (estimated 15-basis point decline  in the Common Equity Tier-1  ratio 
under Basel 3^[4] on a pro-forma basis at Dec. 31, 2012)

l Enhancement of the Group's financial structure in 2012

> Core Tier-1 ratio under  Basel 2.5 of 10.7%^[5]  at Dec. 31, 2012,  +160 
basis points in 1 year

> Common Equity Tier-1 ratio under Basel 3 in excess of 9%^4,5 at Dec. 31,
2012, ahead of target 

> Goal to reduce liquidity requirements by €35 billion achieved one year
in advance. Liquidity reserves of €144 billion at Dec. 31, 2012, equal to an
increase of €34 billion in one year

> 2013 Medium-/Long-Term refunding program 50%^[6] complete at January 31,
2013
l Solid results in a tight business environment

> Stability in core business line revenues at €20.9 billion (-1.0% vs.
2011)

> Net income attributable to equity holders of the parent (excluding
revaluation of the Group's own debt) of €2.34 billion (-5.9% vs. 2011^[7])

> Net income attributable to equity holders of the parent: €2.15 billion

l Continued adaptation of the business models of the core business lines

> Banque Populaire banks and Caisses d'Epargne: strong growth in the
number of active customers leading to substantial growth in on-balance sheet
savings deposits and continued funding of the French economy

> Crédit Foncier: active balance sheet management with the disposal of
international assets for €4.9 billion since November 30, 2011; 7% cost
reduction vs. 2011; launch of the project to pool IT resources with the
creation of the Caisses d'Epargne platform

> Natixis: goal of reducing capital and liquidity consumption achieved one
year ahead of schedule; implementation of the Originate to Distribute model in
the Wholesale Banking arm and launch of the Operational Efficiency Plan

On February 17, 2013, the Supervisory Board of BPCE convened a meeting chaired
by Yves Toublanc to examine the Group's financial statements for the full year
and fourth quarter of 2012.

François Pérol, Chairman of the Management  Board of BPCE, said: "Building  on 
sound results in 2012, generated in a tight business environment, Groupe  BPCE 
is today announcing a  major project aimed  at simplifying its  organizational 
structure. The  projected  buy-back  of  Cooperative  Investment  Certificates 
(CCIs) follows on  directly from the  strategic decisions that  we have  taken 
since  2009:   confirmation  of   the  Group's   cooperative  banking   model, 
clarification of its organization,  transformation of Natixis' business  model 
and risk  profile, a  stronger  customer focus  adopted  by all  our  business 
activities. Once the operation has been  completed, the entire capital of  the 
Banque Populaire banks and Caisses d'Epargne will be held by their cooperative
shareholders; Natixis, a fully-fledged member of Groupe BPCE, is BPCE's listed
entity responsible for pursuing  core business lines in  favor of the  Group's 
long-term strategy. Our results  for last year,  the further strengthening  of 
our financial structure and the launch of the CCI buy-back operation allow  us 
to look forward with confidence to drawing  up our new strategic plan for  the 
period running from 2014 to 2017."

1. Groupe bpce simplifies its organizational structure and announces the
projected joint buy-back by Banque populaire banks and Caisses d'Epargne of
the Cooperative Investment Certificates (CCIs) held by Natixis in the capital
of its parent companies

With the buy-back of  the CCIs held  by Natixis, BPCE  is announcing plans  to 
substantially simplify its organizational structure. In this context,  Natixis 
would pay its shareholders  an exceptional dividend^[8] in  an amount of  €2.0 
billion. This  plan is  consistent with  the implementation  of the  2012-2013 
strategic plan "Together".

BPCE S.A.  and Natixis  announced  today that  they  have presented  to  their 
respective Supervisory  Board and  Board of  Directors, a  project implying  a 
significant  simplification  of  Groupe  BPCE's  structure.  The  contemplated 
operation would consist in the buy-back by the Banque Populaire banks and  the 
Caisses d'Epargne of all the Cooperative Investment Certificates (CCIs),  they 
had issued  and which  are currently  wholly-owned by  Natixis. Following  the 
cancellation of the CCIs bought back by each Banque Populaire bank and  Caisse 
d'Epargne, these banks would be fully owned by their cooperative shareholders.
This buy-back  operation of  CCIs would  be accompanied  by the  unwinding  of 
associated financing agreements and intra-group  mechanisms (such as the  P3CI 
instrument).

This operation would  represent a  new key  milestone in  the construction  of 
Groupe BPCE. Since its creation in 2009, BPCE has already managed to  simplify 
its legal structures, its organization and its governance; it has achieved the
greatest part of the disposal program regarding its non-core assets (including
GAPC) and drawn conclusions of unstable macroeconomic and financial conditions
on its accounts.  This operation, while  concluding "Together", Groupe  BPCE's 
strategic plan  for 2009-2013,  would  enable Groupe  BPCE  to engage  in  the 
preparation on solid  foundations of  its new  strategic plan  for the  period 
2014-2017 to be announced in the autumn. As part of this future plan, Natixis,
one of Groupe  BPCE's core businesses,  will keep deploying  its offering  and 
services in  the Banque  Populaire and  Caisse d'Epargne  networks, making  it 
possible to  further enhance  revenue  and cost  synergies that  have  already 
materialized over the past few years  (€616m and €930m respectively as at  the 
end of 2012),  achieved ahead of  the target  initially fixed for  the end  of 
2013.

For Natixis,  the envisaged  buy-back of  the  CCIs, in  the context  of  this 
operation, would allow it to show an improved profitability profile as well as
a  simplified  financial  and  prudential  structure.  This  operation   would 
constitute a new key  milestone in the transformation  of its business  model, 
which is now  clearly based on  three customer-centric core  business lines  - 
Wholesale Banking, Investment Solutions, and Specialized Financial Services  - 
and on Coface. Natixis also demonstrates a significantly lowered risk  profile 
since 2009, while presenting, on a consistently recurring basis, a  profitable 
activity since then.

The price paid  for this  buy-back would amount  to €12.1  billion (with  2012 
dividend rights attached),  hence valuing  the CCIs  marginally above  (1.05x) 
their share of  the aggregated book  value of the  Banque Populaire banks  and 
Caisses d'Epargne. This disposal would have  a neutral impact on Natixis'  net 
income attributable  to  equity  holders  of  the  parent  in  2012.  Détroyat 
Associés^[9] will assess the fairness of  this operation and will present  its 
conclusions to Natixis' Board of Directors and general shareholders' meeting.

This buy-back  operation of  the CCIs  would result  in an  approximately  €16 
billion decrease in Natixis'  risk weighted assets (net  of the impact of  the 
P3CI instrument). In order to  distribute the capital surplus thus  generated, 
Natixis would propose the payment of a €2.0 billion exceptional dividend^8  to 
its shareholders (€0.65 per share) in addition to the ordinary €0.10 per share
dividend to be proposed for approval in the general shareholders' meeting.

Natixis would present  a 9.2%^[10]  Core Tier-1  ratio under  Basel 3^10  (pro 
forma the contemplated operation) as at  January 1, 2013, consistent with  the 
Core Tier-1 ratio^10 posted by the company as at January 1, 2013, before  this 
operation (9.0%^10). Natixis would thus further improve - post operation - its
already highly robust solvency position.

At Groupe  BPCE's  level,  this  CCI  buy-back  operation,  coupled  with  the 
distribution of  an exceptional  dividend by  Natixis, would  have a  marginal 
impact (-15bps) on its Common Equity  Tier-13 ratio^10 as at January 1,  2013. 
This reflects the fact  that the CCIs are  already cancelled in Groupe  BPCE's 
consolidated accounts.

With this  operation,  Groupe BPCE  once  again demonstrates  its  ability  to 
optimize capital  circulation  within its  perimeter  in order  to  ensure  an 
appropriate allocation  of  its  resources.  Thus,  in  the  context  of  this 
operation, BPCE  S.A.  would  reimburse  the  highly-subordinated  debt  (€2.0 
billion  nominal)  subscribed  by  the  Banque  Populaire  banks  and  Caisses 
d'Epargne, and reduce the  capital of BPCE  SA by €2 billion  in favor of  the 
Banque Populaire banks and the Caisses d'Epargne.

This operation will be submitted,  after approval of employees  representative 
bodies, for approval by the Boards of Directors of Banque Populaire banks  and 
by  the  Supervisory  Boards  of  the  Caisses  d'Epargne  (joint  and   equal 
shareholders of BPCE S.A.), by the Board of BPCE and by the Board of Directors
of Natixis. This operation could be closed during the third quarter of 2013.

Rothschild & Cie Banque and Bredin  Prat are advising Natixis and Groupe  BPCE 
in this Operation.
JP Morgan  is  providing  financial consultancy  services  to  Natixis'  audit 
committee.
Détroyat Associés  consulting  firm  is  acting  as  an  expert  and  fairness 
arbitrator on behalf of Natixis.
The Ricol, Lasteyrie firm has been appointed  as experts by BPCE on behalf  of 
the Banque Populaire banks and the Caisses d'Epargne.

2. Consolidated results of Groupe BPCE for the full year and 4^th quarter of
2012

2.1 Consolidated results for full-year 2012^[11]

The Group has recorded solid results in a tight business environment. Revenues
from its core business lines stand  at €20.9 billion, down 1.0% compared  with 
2011, while  2012 net  income attributable  to equity  holders of  the  parent 
amounts to €2,754 million, down 18.3% compared with 2011^[12].

The negative  impact of  non-operating  items on  net income  attributable  to 
equity holders of the  parent represents an aggregate  total of -€607  million 
including, in particular, -€198 million  revaluation of the Group's own  debt, 
-€273 million in goodwill impairment and value adjustments, and -€190  million 
representing the prolonged decline in value of the interest in Banca Carige.

Groupe BPCE  is efficiently  pursuing its  drive to  adapt to  changes in  the 
regulatory environment  by  strengthening  its  capital  adequacy  before  the 
transition to the new Basel 3  regulatory framework, with a Core Tier-1  ratio 
of 10.7%^[13], up 160 basis points in the course of 2012.

The net  banking income  of Groupe  BPCE came  to €22,504  million, down  1.2% 
(excluding non-operating items) compared with 2011^12.

The revenues posted by the core  business lines of BPCE remain stable  despite 
the adverse economic  environment, buoyed up  by the dynamism  of the  Group's 
commercial activities.
Revenues posted  by the  Group's  core business  lines^[14] stand  at  €20,867 
million, down just 1.0% compared with 2011.
The Group's operating expenses reached a total of€15,935 million, up 2.1%. If
new fiscal  measures are  excluded, the  Group's expenses  rose by  1.0%.  The 
operating expenses of the core business lines increased 2.9% to reach a  total 
of €14,061  million,  (+1.8% in  the  absence  of new  fiscal  measures).  The 
cost/income ratio stands  at 70.8% for  the Group  and at 67.4%  for the  core 
business lines.

Gross operating income came to €6,569  million, down 8.3% compared with  2011. 
The contribution  made by  the  Group's core  business  lines came  to  €6,806 
million, down 8.1% compared with 2011.

The cost of  risk came  to a  total of  €2,176 million,  representing a  17.7% 
increase over 2011. The cost  of risk of the  core business lines follows  the 
same upward trend, rising 22.5% to €1,788 million, reflecting the downturn  in 
the economic environment and  the impact of  a specific case  of funding of  a 
financial leasing activity in partnership  with a specialized company  (+13.3% 
excluding the impact of this item).

Net income attributable  to equity  holders of the  parent shows  considerable 
resilience and stands at €2,754 million, down 18.3%if non-operating items are
excluded. The net income of the core business lines has declined by 18.2%  and 
amounted to €3,075 million in 2012.

The ROE of the core business lines stands at 9%, down 2.0 percentage points.

2.2 Results for the 4^th quarter of 2012^[15]

In the 4^th  quarter of 2012,  net banking income  came to a  total of  €5,662 
million, up 0.2%,  while the  net banking income  of the  core business  lines 
reached a total of €5,326 million.

Operating expenses  represent  a  charge of  €4,157  million,  representing  a 
closely managed  increase of  2.0%;  for the  core business  lines,  operating 
expenses have risen 4.0% to a total of €3,678 million.

Gross operating income  declined 4.5% to  reach €1,505 million.  For the  core 
business lines, it fell 7.8% to €1,648 million.

The cost of risk stands at €644 million, up 5.3%.

Net income attributable to equity holders of the parent is down 12.4% at  €521 
million.

The ROE of the core business lines stands at 8%, down 1.0 percentage point.

The 2010-2013 strategic plan "Ensemble"  is continuing to drive Groupe  BPCE's 
banking model, which  is achieving  enhanced results in  terms of  operational 
efficiency, with results ahead  of the predetermined  target. At December  31, 
2012, additional net banking income worth an aggregate €616 million since  the 
launch of  the strategic  plan  had been  generated from  synergies  developed 
between Natixis and the Banque Populaire and Caisse d'Epargne retail networks,
chiefly in the areas of consumer finance, payments and insurance. As a result,
the rollout of the  personal loan offering in  the Banque Populaire banks  and 
the sustained growth  enjoyed by  leasing activities  have enabled  businesses 
related to financing  to exceed their  targets. The business  context is  more 
difficult for financial savings products.

At December 31, 2012, cost synergies for  Groupe BPCE as a whole amount to  an 
aggregate €930 million since the strategic plan was first launched thanks,  in 
particular, to the rationalization  of third-party expenses, the  optimization 
of Group purchasing, and the pooling of IT-related expenses.

2.3 Workout portfolio management (GAPC)

The GAPC is continuing to implement its asset disposal program by reducing the
amount of assets  managed on  a run-off  basis, without  having a  significant 
impact on net  income attributable  to equity  holders of  the parent.  Assets 
worth a total of €3.6 billion were divested in 2012.

Risk-weighted assets declined  by €1.7 billion  in the 4^th  quarter of  2012, 
falling 58% since June 2009.

3. Capital adequacy and Liquidity: Adapting the Group to its new environment

Groupe BPCE is pursuing its drive to reinforce its financial strength and  has 
enhanced its capital adequacy by 160  basis points compared with December  31, 
2011. The Core Tier-1 ratio under Basel 2.5 stood at 10.7%^[16]at December 31,
2012.

Core Tier-1 capital represented  €40.9billion at December  31, 2012, up  from 
€23.3 billion in June 2009 when  Groupe BPCE was first created (excluding  the 
temporary capital injection received from the French government and which  has 
since been reimbursed in full).

Groupe BPCE has already reached its target of Common Equity Tier-1 under Basel
3, without transitional measures^[17],  of more than  9% in 2013,  considering 
that it stood at 9%^16 at December 31, 2012.

Groupe BPCE  had set  itself  the target  of  reducing its  wholesale  funding 
requirements by €25-35 billion between the end of June 2011 and the end of
2013. At  December  31,  2012, it  achieved  this  target one  year  ahead  of 
schedule, enabling the  Group to  enjoy a  good liquidity  position with  €144 
billion in  liquidity  reserves (including  €98  billion in  available  assets 
eligible for central bank financing, and  €46 billion in liquid assets  placed 
with  central  banks  at  December   31,  2012)  for  short-term   refinancing 
outstandings of €103 billion^16 at the end of December 2012.
At December  31, 2012,  short-term refinancing  outstandings were  covered  by 
liquidity reserves by a factor of 140%.
On-balance sheet deposits continued  to increase in  the Banque Populaire  and 
Caisse d'Epargne  retail banking  networks, with  a loan-to-deposit  ratio  of 
114%^16 at December 31, 2012.

3.1 Medium-/Long-Term Funding: 50% of the 2013 program completed at January
31, 2013

The 2013  Medium-/Long-Term Funding  program  for a  total  of €21  billion  - 
smaller than the 2012 program of €24.5 billion - was 50% completed at the  end 
of January 2013 (including amounts raised at the end of 2012 above and  beyond 
the 2012  funding program),  with an  average  maturity of  5.8 years  and  an 
average mid-swap rate of +60 basis points.

The Group  has raised  €10.6 billion^[18]  from its  two funding  pools:  €6.8 
billion from unsecured bond issues and €3.8 billion from covered bond issues.

BPCE's Medium-/Long-Term Funding  pool has  completed 59% of  its €14  billion 
program with €8.3 billion raised with an average maturity of 4.0 years.

As for  the Crédit  Foncier  Medium-/Long-Term Funding  pool,  33% of  the  €7 
billion program has been  completed, with €2.3  billion^8 in resources  raised 
with an average maturity of 12.1 years.

2012 CONSOLIDATED RESULTS OF GROUPE BPCE EXCLUDING NON-OPERATING ITEMS

                                              2012 /    CORE BUSINESS  2012/
in €m                               2012     2011^[19]     LINES^*      2011
                                                            2012
Net banking income                    22,504     -1.2%         20,867    -1.0%
Operating expenses                   -15,935    + 2.1%        -14,061   + 2.9%
Excluding new fiscal measures        -15,760   + 1.0%        -13,913  + 1.8%
Gross operating income                 6,569     -8.3%          6,806    -8.1%
Cost/income ratio                      70.8% + 2.3 pts          67.4% + 2.5 pt
Cost of risk                          -2,176   + 17.7%         -1,788  + 22.5%
Résultat avant impôt                   4,605    -16.6%          5,236   -14.7%
Net income attributable to        2,754    -18.3%          3,075   -18.2%
equity holders of the parent
ROE                                                                9% -2.0 pts

* The core business lines are Commercial Banking and Insurance (with, in
particular, the Banque Populaire and Caisse d'Epargne retail banking networks
along with Crédit Foncier, Banque Palatine and BPCE International et
Outre-mer) and Wholesale Banking, Investment Solutions, and Specialized
Financial Services (Natixis).

CONSOLIDATED RESULTS OF GROUPE BPCE IN THE 4^th QUARTER OF 2012, EXCLUDING
NON-OPERATING ITEMS

in €m                                 Q4-12   Q4-12 /   CORE BUSINESS Q4-12 /
                                               Q4-11       LINES*      Q4-11
Net banking income                     5,662     +0.2%          5,326        -
Operating expenses                    -4,157    + 2.0%         -3,678   + 4.0%
Gross operating income                 1,505     -4.5%          1,648    -7.9%
Cost/income ratio                      73.4%   +1.3 pt         -69.1% +2.6 pts
Cost of risk                            -644  + 5.3%           -469  + 15.2%
Résultat avant impôt                     915    -12.4%          1,239   -13.2%
Net income attributable to equity        521    -12.4%            728   -15.5%
holders of the parent                                -
ROE                                                                8%  -1.0 pt

* The core business lines are Commercial Banking and Insurance (with, in
particular, the Banque Populaire and Caisse d'Epargne retail banking networks
along with Crédit Foncier, Banque Palatine and BPCE International et
Outre-mer) and Wholesale Banking, Investment Solutions, and Specialized
Financial Services (Natixis).

4. RESULTS OF THE CORE BUSINESS LINES

4.1 Commercial Banking and Insurance: buoyant commercial activity resulting
in growth in on-balance sheet savings deposits

The Commercial Banking and  Insurance core business  line groups together  the 
activities of  the  Banque  Populaire  and  Caisse  d'Epargne  retail  banking 
networks, of the  Real Estate  Financing division (chiefly  Crédit Foncier  de 
France) and the Insurance, International and "Other networks" activities.



2012: initiatives for the benefit of our customers

In 2012,  the Commercial  Banking and  Insurance division  took a  great  many 
initiatives for the benefit of its customers while developing synergies within
Groupe BPCE.

In response to new consumer  habits, in line with technological  developments, 
the two retail networks pursued their multi-channel distribution program  with 
the final rollout of on-line branches and the development of websites, thereby
enhancing the public visibility of  its brands: 54million visitors per  month 
for the  Caisse d'Epargne  website  and 25  million  visitors for  the  Banque 
Populaire on-line  account management  area alone.  This visibility  is  also 
reflected in the 2.7 million mobile  applications downloaded in 2012 for  both 
retail networks.

In the  means of  payment area,  the Banque  Populaire banks  and the  Caisses 
d'Epargne have also innovated, by developing a range of payment solutions  via 
mobile phone. This offering  represents a tangible step  towards the "bank  of 
the future": S-money,  launched in July,  is the first  banking solution  that 
allows customers  to  pay,  receive  and send  money  instantaneously  from  a 
smartphone.

Another innovative customer-centric initiative was launched in 2012: "Digital
Enterprise. It allows  customers to  sign up for  savings products  in a  bank 
branch by using  an electronic signature  without using any  paper during  the 
process.

To firmly  establish the  distribution of  insurance products  (provident  and 
non-life)   within   the    Group's   entities,    the   "Ambition    Banquier 
Assureur"project - has  led to substantial  growth in the  net revenues  from 
general insurance products (+50%) and provident insurance (+ 81%). The number
of contracts in portfolio has increased significantly to reach 4.5 million  at 
the end of 2012.

Synergies are continuing to be generated with Natixis notably with the sale of
consumer finance products. The general rollout of the sales application in the
Banque Populaire banks,  previously implemented successfully  in the  Caisses 
d'Epargne, led  to  a  4%  increase  in new  loan  production  in  2012  in  a 
contracting market (-4%). Moreover, regarding factoring, revenues grew by 4.4%
to reach €15.1billion for the year as a whole.

Strong growth in the customer base, savings deposits and loan outstandings

Building on their image as (respectively) the French public's first and  third 
most preferred  banking institution^[20],  the  Caisses d'Epargne  and  Banque 
Populaire banks have pursued their  dynamic commercial policies. The focus  on 
customer relations,  at the  very heart  of  their strategy,  has led  to  the 
capture of  new customers  and  a strengthening  of relationships  with  their 
existing clientele. This growth is tangible for all customer categories served
by both retail banking networks.

This dynamic growth in the customer  base has resulted in 7.2%^[21] growth  in 
on-balance sheet savings deposits driven  by passbook savings accounts  (+10%) 
and term accounts (+12.5%). Loan outstandings also display significant  growth 
(+6%) in what remains an adverse economic environment both for households  and 
for business organizations.

Full-year 2012 financial results for Commercial Banking and Insurance

In 2012  as a  whole, the  revenues generated  by the  Commercial Banking  and 
Insurance core  business  line  came to  €14,846  million^21,  representing  a 
decline of 1.8^21% compared with 2011.

These figures reflect resilient revenue performance in an adverse  environment 
regarding both the economy  and changes in  the regulatory environment  (with, 
notably, the reduction in commissions paid on centralized savings deposits and
interbank payment operations). In this context, the net interest margin of the
Banque Populaire  and  Caisse  d'Epargne  networks  rose  +3.1%^[22],  whereas 
commissions earned by the retail banking networks declined by 4.9%.

Operating expenses stood at €10,063 million,  up +2.3% compared with 2011  (if 
the impact of new fiscal measures is excluded, growth is limited to +1.0%).

Gross operating income stands at €4,761 million.
The cost/income ratio comes to 68.1%, up 3.3 points compared with last year.

The cost of risk has risen  13.3%, standing at €1,447 million, reflecting  the 
deterioration in the economic environment. The increase is limited to 6.6%  if 
the impact of a specific  case of funding of  a financial leasing activity  in 
partnership is excluded.

Net income  attributable to  equity holders  of the  parent generated  by  the 
Commercial Banking and Insurance core business line is €2,233 million.

The ROE of the core business line in 2012 stands at 8%.

3.1  Banque Populaire

The  Banque  Populaire  network  comprises  the  19  Banque  Populaire  banks, 
including CASDEN and Crédit Coopératif and their subsidiaries, Crédit Maritime
Mutuel and the Mutual Guarantee Companies



  oCustomer base

The Banque  Populaire network  is pursuing  its drive  to offer  products  and 
services to  its customers.  Regarding the  individual customer  segment,  the 
number of active customers  rose by +3.3%, and  by +4.9% for active  customers 
using banking services and insurance products. The number of professional  and 
corporate customers increased by +1.6%.

  oSavings deposits

The growth in on-balance sheet savings for the Banque Populaire banks remained
buoyant, up  +6.0%  in relation  to  the  fourth quarter  of  2011  (excluding 
centralized savings). This positive trend was  driven by an increased flow  of 
deposits on passbook savings accounts  held by individual customers  (deposits 
+17.3%), related to the increased ceilings of the livret A and LDD sustainable
development passbook savings accounts, but also as a result of the strategy to
develop term  accounts  destined  for  professional  and  corporate  customers 
(+22.7%). Within a context of lower yields, life funds remained stable.

  oLoan outstandings

The lending activity of the Banque Populaire banks stood up well in 2012.

Home loan outstandings  advanced +4.0%  despite the  25% drop  in new  lending 
activity compared with 2011, a  percentage that remains, however, better  than 
the market performance overall (-26.4%^[23]).

Regarding consumer finance, the continued industrialization of personal  loans 
with Natixis has  led to a  5% rise in  new lending and  reversed the  current 
trend of loan outstandings, which is now oriented upwards (+0.4%).

With regards corporate  customers, the more  uncertain economic situation  has 
led to  slower growth  in equipment  loans(+1.4%) and  a rapid  expansion  in 
short-term credit facilities (+16.6%).

  oFinancial results

Net banking income for the Banque Populaire network for the full-year 2012 was
down 3.6%^[24], at €6,049 million^23. Operating expenses increased by 2.9%  to 
€4,185 million, leading  to gross  operating income  of €1,847  million and  a 
cost/income ratio of  69.4%, up 5.1  percentage points. The  cost of risk  has 
increased by 12.5% to reach €747 million.

In 2012,  the Banque  Populaire network  contributed €731million  to the  net 
income of Groupe BPCE.

3.2  Caisse d'Epargne



The Caisse d'Epargne network comprises the 17 individual Caisses d'Epargne.

  oCustomer base

The Caisse d'Epargne network put up a solid commercial performance in 2012, in
line with its strategy of deepening customer relations, which is reflected  in 
the dynamic  policy of  developing  the customer  base  with the  addition  of 
313,000  active  individual  customers,  including  247,000  active  customers 
banking principally with the Caisses d'Epargne in 2012. The other markets also
posted strong growth, with an  annual growth rate of  7% in respect of  active 
professional customers and 9% for corporate customers.

  oSavings deposits

The Caisses d'Epargne enjoyed  dynamic growth in  on-balance sheet savings  in 
all segments: passbook account savings rose +8.1%^21 in 2012, demand  deposits 
+6.1% and term  accounts +4.8%. Overall,  on-balance sheet savings  (excluding 
centralized savings) rose by +8.1% in relation to 2011.

In adverse market conditions, financial savings deposits showed resilience,
with life insurance growth remaining positive at +1.3% compared with the
fourth quarter of 2011.

  oLoan outstandings

After two record-breaking years, the Caisses d'Epargne enjoyed 8.4% growth  in 
aggregate loan outstandings in 2012.

Real estate loans continued to advance at a good rate (+8.1% over one  year), 
propped up by new  lending which, despite being  down 17%, declined less  than 
the market overall (which fell by 26.4^[25]%).

Consumer finance  continues  to  display  growth,  with  a  3.5%  increase  in 
outstandings. Despite  the sluggish  business environment  (due to  a fall  in 
consumption and  a decline  in new  car registrations),  new lending  remained 
stable at a high level.

Finally, equipment loans are up11.1%, driven by growth in the customer  base. 
New lending was bolstered in particular, in the corporate customer market.

  oFinancial results

Net banking  income for  the year  as a  whole increased  by +0.2%  to  €6,806 
million (excluding changes in provisions  for home purchase savings  schemes). 
Operating expenses  increased by  2.5%  to €4,518  million, leading  to  gross 
operating income of €2,238 million and a cost/income ratio of 66.9%, up by 2.1
percentage points. The cost of risk stands at €441 million (+24.2%).
The Caisse d'Epargne network contributed €1,147  million to the net income  of 
Groupe BPCE in 2012.

3.3  Real estate financing

Crédit Foncier  is  the  principal  entity contributing  to  the  Real  estate 
financing business line.



As part  of the  implementation  of its  strategic  plan, Crédit  Foncier  has 
continued to reduce  the size  of its  balance sheet  via a  policy geared  to 
divesting its international portfolio,  in an amount of  €3.6 billion in  2012 
(representing €4.9  billion  since the  plan  was first  launched);  and  debt 
buy-backs came  to €1.3billion  (or €2.3  billion since  the plan  was  first 
launched). The net impact on net banking income in 2012 of these disposals was
-€41 million and listed under "Other businesses" for last year.

The cost-cutting plan led  to a 7%  reduction in costs  in 2012 compared  with 
2011, thanks to the success of the forward-looking management retirement plan,
whose final  take-up rate  was 88%,  and the  launch of  the plan  to pool  IT 
resources with the IT-CE platform used by the Caisses d'Epargne.

Crédit Foncier has  adapted its business  model with the  launch of the  first 
syndication operations  in  the  Corporatesector  and  the  securitization  of 
individual customer receivables (€1 billion securitized in 2012).

Aggregate new loan production  came to €9.8 billion  in 2012. The presence  of 
products  for  first-time   buyers  and  solutions   designed  to   facilitate 
home-ownership among low-income families (where Crédit Foncier boasts a market
share in excess of 40%^[26]) made it possible to limit the decline in new loan
production in the  individual customer  segment to 15%.  The France  Corporate 
customer segment is still proving  resilient thanks to social housing  funding 
activities.

4. Wholesale Banking, Investment Solutions and Specialized Financial
Services
(Core Business Lines included in Natixis)

The 2012 net banking income of  the core business lines of Natixis  (Wholesale 
Banking, Investment  Solutions and  Specialized  Financial Services)  came  to 
€6,088 million in  2012, rising  3.3% compared  with 2011.  Two core  business 
enjoyed  growth:  Investment  Solutions  (+9.4%)  and  Specialized   Financial 
Services (+2.7%). Net banking  income for the  Wholesale Banking division  was 
very slightly down (0.7%).

Operating expenses, at €3,998 million, increased by 4.4%.

The cost/income ratio was down by 0.7 percentage points, at 65.7%.

The cost of  risk rose  to 341  million euros  reflecting the  decline in  the 
economic environment.

The income before  tax of  the three business  lines declined  7.1% to  €1,764 
million.

After accounting for minority  interests and income  tax, the contribution  to 
Groupe BPCE's net income came to €842 million, down 10.4%.

The return on equity of these core business lines stands at 14%.

For Natixis, the underlying net  income came to €1,141 million;  non-operating 
items amounted to -€240  million, net of tax  (chiefly the revaluation of  the 
Group's own debt).

(For a  more detailed  analysis of  the  core business  lines and  results  of 
Natixis, please refer to  the press release published  by Natixis that may  be 
consulted online at www.natixis.com).

5. EQUITY INTERESTS^[27]



Equity Interests chiefly concern the activities pursued by Coface and Nexity



The net banking income posted by the Equity Interests division stood at €1,756
million in 2012, compared  with €1,724 million in  2011. Group net income  for 
the division amounted to €76 million.

  oCoface core businesses^[28]

Revenues amounted to €1,571  million, up 1% compared  to 2011, including a  3% 
increase in  the credit  insurance business,  in a  more challenging  business 
environment. The year  has nevertheless  been characterized  by a  significant 
improvement in profitability with pre-tax income rising to €164 million.

The claims  ratio  remains under  close  managmenet at  56.7%  in 2012,  in  a 
sluggish environment down 0.8 percentage points compared with 2011.

6 Groupe BPCE, a socially responsible banking institution

Groupe BPCE, a socially responsible  banking institution, has staged a  number 
of large-scale operations in environmental, societal and social areas in 2012.

Chosen by  the European  Commission to  be the  first French  bank to  finance 
energy efficient projects,  BPCE entered  into a partnership  with the  German 
bank KfW to  support geographical  regions, local  authorities, companies  and 
individuals taking initiatives in  this area. This  partnership forms part  of 
the European mechanism  (ELENA) designed  to promote  local energy  efficiency 
initiatives.

Groupe BPCE  remains  the  leading banking  institution  for  solidarity-based 
savings in France^[29] and  the No1 French banking  group for microcredits.  A 
leader in solidarity-based initiatives, BPCE devoted €32.5 million in 2012  to 
societal activities.

A cooperative banking  institution, a bank  active at the  local and  regional 
level, and the bank for all types of clientele, with its 36 million  customers 
and 117,000 employees, the  Group considers itself duty  bound to reflect  the 
rich diversity of  its clientele. Gender  equality, identified as  one of  the 
strategic thrusts of its human resources  policy, has been one of the  vectors 
driving the adaptation of HR processes, and has led to the systematic adoption
of awareness-building  and  employee  training  activities,  as  well  as  the 
introduction of support measures specifically dedicated to female employees.

Notes on methodology
Capital is now allocated to Groupe BPCE's core business lines on the basis  of 
9% of  average  risk-weighted assets  against  7% in  2011.  Furthermore,  the 
consumption of capital  related to the  securitization operations involving  a 
deduction from  regulatory  Tier-1  capital  is now  attributed  to  the  core 
business lines. Related figures are published on a pro-forma basis to  account 
for this new allocation.
The Eurosic and  Foncia equity  interests, sold in  June and  July 2011,  were 
reclassified under "Other Businesses" on June 11, 2011.
Groupe BPCE sold  part of its  equity interest in  Volksbank International  AG 
(previously attributed to  the Commercial Banking  and Insurance Division)  on 
February 15, 2012. On December 31, 2011, the financial items corresponding  to 
the businesses in  the process  of divestment were  reclassified under  "Other 
Businesses" and the businesses  not subject to  divestment were attributed  to 
the Equity Interests core business line.
The impact of  Crédit Foncier's  dynamic balance  sheet management  operations 
(divestment of  securities  and debt  buy-backs)  have been  classified  under 
"Other Businesses" as of the 2^nd quarter of 2012.
The segment information of Groupe BPCE  has been restated accordingly for  the 
periods in question.
The audit procedures relating to the consolidated financial statements for the
year ended December 31, 2012 have been substantially completed. The reports of
the statutory  auditors  regarding  the certification  of  these  consolidated 
financial statements  will  be published  following  the verification  of  the 
Management Report  and the  finalization of  the procedures  required for  the 
registration of the reference document.

About Groupe BPCE:
Groupe BPCE, the 2nd-largest banking group in France, includes two independent
and complementary  commercial  banking  networks: the  network  of  19  Banque 
Populaire banks and the network of 17 Caisses d'Epargne. It also works through
Crédit Foncier de France in the area  of real estate financing. It is a  major 
player in  wholesale banking,  asset management  and financial  services  with 
Natixis. Groupe BPCE serves more than 36 million customers and enjoys a strong
presence in France with  8,000 branches, 117,000 employees  and more than  8.6 
million cooperative shareholders.







BPCE Press Contacts             BPCE Investor Relations

Sonia Dilouya: 01 58 40 58 57   Roland Charbonnel: 01 58 40 69 30
Terence de Cruz: 01 40 39 64 30 Evelyne Etcheverry: 01 58 40 57 46

mail: presse@bpce.fr            mail: investor.relations@bpce.fr

                                    ANNEX

                   Simplification of the Group's structure

 www.bpce.fr
@GroupeBPCE

-------------------------

[1] 2012 dividend rights attached; representing 1.05 x the aggregate equity of
the Banque Populaire banks and Caisses d'Epargne

[2] Proposal submitted to the Extraordinary General Shareholders' meeting

[3] Return on Tangible Equity, or return on total shareholders' equity less
deeply subordinated notes, intangible assets and goodwill. Excluding
non-operating items - 2012 pro forma versus real 2012

[4] Without transitional measures and after restatement for deferred tax
assets and subject to the finalization of regulatory provisions

[5] Estimate

[6] Including amounts raised at the end of 2012 in excess of the 2012 program

[7]Pro forma to account for the disposal of Eurosic and Foncia in June and
July 2011

[8] Proposal subject to the approval of the General Shareholders' meeting of
Natixis

[9] A consultancy specializing in financial valuations

[10] Without transitional measures and after restatement for deferred tax
assets and subject to the finalization of regulatory provisions

[11] Excluding non-operating items

[12] Pro forma to account for the disposal of Eurosic and Foncia in June and
July 2011

[13] Estimate at December 31, 2012

[14] The core business lines are Commercial Banking and Insurance (with, in
particular, the Banque Populaire and Caisse d'Epargne retail banking networks
along with Crédit Foncier, Banque Palatine and BPCE International et
Outre-mer) and Wholesale Banking, Investment Solutions, and Specialized
Financial Services (Natixis)

[15] Excluding non-operating items

[16] Estimate at December 31, 2012.

[17]After restating to account for deferred tax assets and subject to the
finalization of regulatory provisions

[18] Including €5.4 billion raised in excess of the 2012 program and deducted
from the 2013 program (€4.0 billion from the BPCE funding pool and €1.5
billion from the CFF pool)

[19] Pro forma to account for the disposal of Eurosic and Foncia in June and
July 2011

[20] JDD/Posternak/IPSOS public image barometer survey, January 2012

[21] Excluding centralized savings products

[22] Excluding changes in provisions for regulated home purchase savings
schemes

[23] Source: Observatoire Crédit Logement

[24] Excluding changes in provisions for home purchase savings schemes

[25] Source: Observatoire Crédit Logement

[26] Source: SGFAS, January 2013

[27] Le pôle Participations financières comprend les participations dans
Nexity, Meilleutaux, Volksbank Romania, Coface et les activités de Private
Equity de Natixis

[28] Activités d'assurance-crédit dans le monde entier et activités
d'affacturage en Allemagne et en Pologne.

[29] Soource: Finasol 2012

Groupe BPCE 2012 results - PR

------------------------------------------------------------------------------

This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
the
information contained therein.

Source: BPCE via Thomson Reuters ONE
HUG#1678857
 
Press spacebar to pause and continue. Press esc to stop.