Affected by the rise in interest rates which has reduced its margins, the French banking group BPCE – which notably includes the Banque Populaire and Caisse d’Epargne networks – published on Wednesday a net result down 25% in 2023, 2, 8 billion euros.
Net banking income (NBI), equivalent to turnover for the sector, fell by 7%, to 22.2 billion euros. The 2022 data has been restated to take into account the application of the new accounting standards.
In detail, revenues from the Community Banking and Insurance (BPA) division reach 14.8 billion euros in 2023 (-7%). As we had anticipated, the financial performance of the BPCE group was marked in 2023 by the transition period linked to the rapid rise in rates, commented the chairman of the management board Nicolas Namias.
With our fixed rate financing model, we are proud to have fully played our role in protecting the purchasing power of Banque Populaire and Caisse d’Epargne customers.
This impact reflects the place we occupy in financing the French economy. With our fixed-rate financing model, we are proud to have fully played our role in protecting the purchasing power of customers of the Banques Populaires and Caisses d’Epargne, he underlines, quoted in a press release.
The net interest margin – the difference between the rate at which a bank lends money and the rate at which it borrows – has fallen by 25%. The rise in the Livret A rate – from 2% to 3% on February 1, 2023 – continued to weigh on the networks’ income, due to the Caisse d’Epargne’s historically significant market share in regulated savings. This charge has an immediate impact on its entire stock of regulated savings, unlike increases in credit rates which, being slower, only apply mainly to new signed loans.
925,000 new customers for 700,000 account closures
BPCE cites particularly strong commercial activity – with 925,000 new customers for around 700,000 account closures – and a 2% reduction in charges over the financial year. It is a year without surprises, but a year of transition, with a new environment which has led us to focus on our commercial conquests, judged Nicolas Namias during the presentation of the results.
The cost of risk, i.e. the sums set aside to deal with possible unpaid amounts on loans granted, fell slightly in 2023, to 1.73 billion euros, or 0.20% of outstandings compared to 0.24% . Natixis’ large client bank (investment bank) is in good shape, with net banking income up 7% over the year, to 4 billion euros, thanks in particular to investment and merger advisory activities. and acquisitions.
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