The banking group BPCE announced on Thursday a net profit up 64% in the first quarter, to 875 million euros, a performance to be put into perspective since the first quarter of 2023 included an exceptional charge, participation in the rescue fund for European banks.
These are solid financial results, commented the Chairman of the Management Board Nicolas Namias to the AFP, at the end of a quarter marked by strong commercial dynamics both in local banking businesses and in global businesses (banking management). assets, financing and investment banking…).
The basis of comparison with the first quarter of 2023 is very favorable BPCE since, last year, the mutual bank contributed for the last time to the Single Resolution Fund (SRF), a European system funded by banks and intended to help establish the sector in the event of bankruptcy.
This has now reached its target size, covering at least 1% of eligible deposits in Europe. Excluding the impact of the SRF (585 million euros for BPCE last year), the group’s results were down 22% in the first quarter.
This decline concerns the pre-tax results of almost all businesses (excluding insurance and payments), notably the two retail banking networks in France, Banque Populaire and Caisse d’Epargne (-24% and -19%, respectively). ).
The bank has, however, worked hard to win over new customers (17,700 more since the start of the year) and limit the damage to real estate loans, the production of which is very low at the start of 2024, with offers dedicated to young people or even the renovation of housing.
Net banking income, equivalent to turnover for the sector, amounted to nearly 5.8 billion euros between January and March, a slight decline of 1%.
The cost of risk, that is to say the sums set aside to deal with possible unpaid debts on loans granted, is up 17% over one year, to 382 million euros.
This charge is driven by a certain number of market files – files of significant size concerning several banks -, underlined Mr. Namias, and reflects the economic deterioration in certain sectors such as real estate and distribution.