BPCE reported stable net income for Q3 at 925 million euros, reflecting a 1% increase amidst diverse performance across its divisions. While the proximity banking and insurance segment held steady, the Banque Populaire faced a significant profit drop. Retail banking gained over 130,000 new customers, and the Global Financial Services division showed a 7% profit rise. BPCE plans a strategic acquisition from Société Générale and aims for a revised net income target of around 5 billion euros by 2026.
BPCE Reports Stable Net Income Amid Mixed Performance
The banking group BPCE has announced a nearly unchanged net income for the third quarter, showcasing robust results in its global operations while facing challenges within its Banque Populaire network. The figures reflect a resilient financial landscape despite some unevenness across its divisions.
During the period from July to September, BPCE recorded a net profit of 925 million euros, marking a modest increase of 1%. The net banking income (NBI), which serves as a revenue indicator for the sector, rose to 5.9 billion euros, showing an impressive 8% year-on-year growth.
CEO Nicolas Namias highlighted the quarter’s key theme as the group’s financial recovery, emphasizing the positive trajectory in performance during a discussion with the press.
Mixed Fortunes in Retail Banking and Strategic Developments
In-depth analysis reveals that the net income from the proximity banking and insurance division remained stable at 785 million euros compared to the previous year, with NBI increasing by 4.3% to reach 3.87 billion euros. However, the two retail banking networks displayed varied results: while the savings banks enjoyed an 11% rise in net profit, the Banque Populaire saw a significant 19% decline.
Additionally, a notable rise in the cost of risk—money set aside for potential loan defaults—was observed, particularly affecting the “blues” (Banque Populaire), with real estate and retail sectors, especially textiles and furniture, being the most impacted, as detailed by Mr. Namias.
On a positive note, retail banking welcomed over 130,000 new customers, indicating potential growth opportunities. The Global Financial Services division, encompassing Natixis’s global operations, reported a net profit of 366 million euros—a 7% increase—with NBI nearing 2 billion euros, up by 12%.
However, the group also faced a loss of 226 million euros in non-core activities, the details of which were not disclosed. Additionally, BPCE announced the forthcoming departure of Natixis CEO Stéphanie Paix for health reasons, with her successor set to take the helm in January 2026.
Moreover, BPCE is poised to acquire Société Générale’s equipment financing activities for companies, valued at 1.1 billion euros, marking the largest acquisition in the group’s history, expected to finalize by the first quarter of 2025. This acquisition aligns with a strategic plan revealed recently, targeting objectives aimed at 2030.
Despite falling short of the previous net income target of 5 billion euros for 2024, BPCE is optimistic, projecting a revised target of “around” 5 billion euros by 2026. Addressing inquiries about the implications of Donald Trump’s win in the U.S. presidential election, Mr. Namias expressed confidence that BPCE’s operations in the U.S. will enter a new growth phase, emphasizing the group’s strong presence in the market through Natixis.
He cautioned, however, that Europe must remain vigilant regarding regulatory and supervisory disparities between the continents, urging a prudent approach to avoid naivety in financial oversight.