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La Banque Postale Group

October 2018INVESTOR PRESENTATION

LA BANQUE POSTALE

Disclaimer

2October 2018INVESTOR PRESENTATION

This document has been prepared by La Banque Postale and La Banque Postale Home Loan SFH solely for use in investor meetings. This document is confidential and is not to be reproduced by any person, nor be

distributed to any person other than its original recipient. La Banque Postale and La Banque Postale Home Loan SFH take no responsibility for the use of these materials by any person.

This presentation does not constitute a prospectus or other offering document in whole or in part. Recipients should not subscribe for any securities issued pursuant to the Offering except on the basis of information in the

prospectus in final form (including the documents incorporated by reference therein) to be issued by the Company in connection with the Offering.

Information contained in this presentation is a summary only, and is qualified in its entirety by reference to the prospectus. The prospectus will include a description of risk factors relevant to an investment in the securities to

be issued by the Company and any recipients should review in particular the risk factors before making a decision to invest.

This presentation does not constitute or form part of any offer or invitation to sell or issue or any solicitation of any offer to buy or subscribe for any security nor shall it (or any part of it) form the basis of (or be relied on in

connection with) any contract or investment decision in relation thereto. Recipients should conduct their own investigation, evaluation and analysis of the information set out in this document and should rely solely on their own

judgment, investigation, evaluation and analysis in evaluating the Company, its business and affairs.

No representation or warranty, express or implied, is given by or on behalf of the Company, the Joint Lead Managers, or any of their respective directors, officers, employees, advisers, agents, affiliates or any other person as

to (a) the accuracy, fairness or completeness of the information or (b) the opinions contained in this document, and, save in the case of fraud, no liability whatsoever is accepted for any such information or opinions.

The information and opinions contained in this presentation are provided as at the date of this document and are subject to change without notice although neither the Company nor any other person assumes any

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future events or otherwise. All liability (including, without limitation, liability for indirect, economic or consequential loss) is hereby excluded to the fullest extent permissible by law.

Certain statements included in this presentation are “forward-looking”. Such forward-looking statements speak only at the date of this document, involve substantial uncertainties and actual results and developments may

differ materially from future results expressed or implied by such forward-looking statements. Neither the Company nor any other person undertakes any obligation to update or revise any forward-looking statements.

All written, oral and electronic forward-looking statements attributable to the Company, or the Joint Lead Managers, or persons acting on their behalf are expressly qualified in their entirety by this cautionary statement.

This document and the investment activity to which it relates may only be communicated to, and are only directed at (i) persons in the United Kingdom having professional experience in matters relating to investments, being

investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the FPO); (ii) qualified investors (investisseurs qualifiés) as defined

in Articles L411-2 of the French Monetary and Financial Code and (iii) persons to whom the communication may otherwise lawfully be made (together Relevant Persons). Any investment or investment activity to which this

document relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. This document must not be acted or relied on by any persons who are not Relevant Persons.

NOT FOR PUBLICATION OR DISTRIBUTION IN THE UNITED STATES - Nothing in this presentation shall constitute an offer of securities for sale in the United States. The securities referred to in this presentation (if any)

have not been registered under the U.S. Securities Act of 1933, as amended (the Securities Act) or under the securities laws of any state of the United States , and may not be offered or sold in the United States absent

registration or an exemption from registration under the Securities Act and applicable state securities laws.

This document may contain a number of forecasts and comments relating to the targets and strategies of the La Banque Postale Group. These forecasts are based on a series of assumptions, both general and specific,

notably – unless specified otherwise - the application of accounting principles and methods in accordance with IFRS (International Financial Reporting Standards) as adopted in the European Union, as well as the application of

existing prudential regulations. This information was developed from scenarios based on a number of economic assumptions for a given competitive and regulatory environment.

The Group may be unable:

- to anticipate all the risks, uncertainties or other factors likely to affect its business and to appraise their potential consequences;

- to evaluate precisely the extent to which the occurrence of a risk or a combination of risks could cause actual results to differ materially from those provided in this presentation.

There is a risk that these projections will not be met. Investors are advised to take into account factors of uncertainty and risk likely to impact the operations of the Group when basing their investment decisions on information

provided in this document. Unless otherwise specified, the sources for the rankings are internal.

LA BANQUE POSTALE

Table of contents

3

Overview and business model

Key figures and results

Risk management

Funding and Liquidity

Capital

LBP Home Loan SFH

Appendices

INVESTOR PRESENTATION October 2018

LA BANQUE POSTALE

A solid and stable shareholding structure and a core subsidiary for Le Groupe La Poste

4

� La Banque Postale is wholly-owned by La Poste, the French Postal Service

� La Poste is structured around 5 business units, dedicated to fulfill 4 public service missions* assigned by the French State:

� Universal postal services

� Contribution to regional planning

� Press transport and delivery

� Banking accessibility

� La Banque Postale is considered as a core strategic subsidiary of La Poste:

� La Poste is legally bound to keep a majority stake in La Banque Postale (Law of regulation of postal activities, 2005)

� La Banque Postale is an essential contributor to La Poste income

� La Banque Postale is, by law, enabled to use La Poste’sstaff for its activities

73.7%

100%

100% *

26.3%

INVESTOR PRESENTATION

The backbone of La Banque Postale

* Caisse des Dépôts and its subsidiaries constitute a State-owned group at the service

of the public interest and of the country’s economic development. The said group fulfils public interest

functions in support of the policies pursued by the State and local authorities, and may engage in

competitive activities. (Article L. 518-2 of the French Monetary Financial Code)

October 2018

LA BANQUE POSTALE

La Poste: a major multi-business services group

5INVESTOR PRESENTATION October 2018

Le Groupe La Poste€12.246bnH1 2018 Revenue

€636mH1 2018 Operating profit

Services-Mail-Parcels GeoPost / DPDgroup La Banque Postale

% G

roup

reve

nue

Mar

ket

Mail and parcel market,mainly in France

European CEP 1 market Retail banking in France Internet-based services

46.6% 28.8% 23.9% 2.8%

La Poste NetworkServicing all business units through 17,126 retail outlets

La Poste NetworkServicing all business units through 17,126 retail outlets 2

A key employer in France253,219 employees3

Strong international presence34,484 employees3 abroad

1 CEP: Courrier-Express-Parcels2 JV co-owned by La Poste (51%) and SFR (49%), not included in Group revenue following application of IFRS11 as of 31/12/2017: 1.38 m customers3 Group employees in full time equivalent on average

LA BANQUE POSTALE

La Banque Postale (LBP): from La Poste’s Financial Services… into a fully fledged bank

6

1817 2000

Creation of Efiposte

(manages sight deposits

collected by La Poste)

Creation of the first postal service

mandate named ‘Reconnaissance’

31/12/2005

EfipostebecomesLa Banque

Postale

2007

Consumer Finance

2009 2011

Corporate lending

La BanquePostaleCrédit

Entreprises

La BanquePostale

Assurances IARD

A long history of La Poste’sfinancial services But still a short history as a fully-fledged bank

2012

Lending toFrench local authorities

La BanquePostale

CollectivitésLocales

La BanquePostale

Financement

P&C Insurance

SFH BPE

La BanquePostale

Home Loan SFH

2013 2014

Sofiap

2015

Partnership with AegonAM merger BPE/LBPGP

Since 2006, LBP has gradually acquired tools and bu ilt up a network of partnerships to accelerate its development and achieve its full potential

Before 2006, La Poste’s financial services business was mainly focused on savings. Since, LBP developed its

product range and became a fully-fledged retail bank

• With diversified lending activities, enhancing LBP’s role in financing the French economy

• Committed to serve all clients, all over the French territory

With strong social responsibility involvement: in 2018, La Banque Postale was designated the leading French

bank and second-best global bank in terms of CSR performance by the sustainable rating agency ISS-Oekom and

No. 1 worldwide by the agency Vigeo-Eiris


2016 2017

CrowdfundingCIB

LBP Prévoyance

Merger Federis/LBPAM

KissKissBankBank

October 2018

Asset Managementdevelopment

Wealth Managementdevelopment

2018

Online banking

Ma French Bank

LA BANQUE POSTALE

La Banque Postale: a business model based on core business development and successful partnerships

7

A very active partnership policy with major players in order to accelerate new businesses launches, re lying on safe and efficient operational process

� Retail banking � Private banking / discretionary portfolio

management� Consumer finance

� Public sector lending� Non-profit organizations & Corporate

banking

� Life insurance � P&C

� Health insurance� Contingency insurance

Insurance

� Asset management for individuals� Asset management for companies

� Real estate

Asset Management

Partnership in Consumer finance

FINANCEMENT

65% owned by LBP

Partnership in Public sector lending

Partnership in Life insurance

20.15% owned by LBP

Partnership in P&C

ASSURANCES IARD

65% owned by LBP

Partnership in Health insurance

ASSURANCES SANTE

51% owned by LBP

ASSET MANAGEMENT

25% of

Partnerships in Asset Management

5% of

Retail Banking

70% owned by LBP

35% of

14% of


40% owned by LBP

60% of20%

75% 5%

100%

October 2018

LA BANQUE POSTALE

La Banque Postale (LBP): a core focus on retail banking and a leading position on the French banking system

8

Contribution to Net Result Before Tax H1 2018

� 10.4 million active retail customers

� 13.1% market share on ordinary savings (all savings accounts except CEL) and 22 % market share on the Livret A

� 5.5% market share on home loans outstandings*

Key figures of retail banking activity at H1 2018

Retail banking in France

NBI in H1 2018 **(€bn)

*Including BPE and Sofiap** Press releases reports, H1 2018*** Sofia Study, July 2018**** Retail banking France, Registration Document, YE 2017

LBP in the French banking environment

LCL 1.7

Crédit Agricole 6.6

Caisses d’Epargne 3.5

Banques Populaires 3.2

Société Générale 4.0

BNP Paribas 3.2

LBP 2.7

6,4

6,6

7,5

6,1LCL

Crédit Agricole 22,3

Caisses d’Epargne 13,9

Banques Populaires

Société Générale

BNP Paribas

LBP 16,1

Penetration rates on main current account

July 2018 (%)***

Number of branches

YE 2017 (m)****

8,4

1,9

2,9

3,2

4,0

7,0

1,7LCL

Caisses d’Epargne

Crédit Agricole

Banques Populaires

BNP Paribas


LBP


23%

6%

71%

Retail Banking

Asset Management

Insurance (inclunding share of profits from CNP)

LA BANQUE POSTALE

A solid and stable shareholding structure, reflected in strong credit ratings

9

Latest rating update 2018 2018

France AA / Stable (April 2018) AA / Stable (January 2018)

Caisse des Dépôts et Consignations AA / Stable (May 2017) AA / Stable (January 2018)

Le Groupe La Poste A / Stable (October 2017) A+ / Stable (December 2017)

Latest rating update September 2017 April 2018

Long term debt A / Stable A- / Stable

Short-term debt A-1 F1

Tier 2 BBB-

La Banque Postale Home Loan SFH AAA / Stable (May 2017)

La Banque Postale’s credit ratings

LT debt ratings of La Banque Postale’s stakeholders


Fitch affirms La Banque Postale at « A- », stable outlo ok (04/12/2018) : « LBP’s ratings reflect it established franchise in deposit collection and housing loans in France, fairly conservative risk appetite, good asset quality, modest profitability and soundcapitalisation, taking into account potential ordinary support from its parent La Poste (A+/Stable), France’s state-owned post office ».

S&P affirms La Banque Postale at « A », stable outlook (09/07/2017) : « S&P Global Rating’s stable outlook on La Banque Postale (LBP) mirrors the stable outlook ont its parent, La Poste, over the next two years. We expect LBP to remain a coresubsidiary of La Poste… in addition, we could upgrade LBP if we raise the long-terme rating on La Poste ».

October 2018

LA BANQUE POSTALE

Table of contents

10



Risk management


Capital

LBP Home Loan SFH

Appendices


LA BANQUE POSTALE

La Banque Postale at a glance

11

H1 2018 Key financial figures

Consolidated results* (in €m) H1 2018 H1 2017

Net banking income 2,926 2,808

Operating income 508 406

Net Income, Group Share 422 367

Cost to income ratio 81.4% 83.6%

Company profile

� Created in 2006 but a long track record in financial services

� Wholly-owned by La Poste, the French Postal Service

� A resilient business model � Retail Banking: 92% of NBI (H1 2018)� Recurrent revenues� Conservative risk policy

Key facts H1 2018

92%

3% 5%

Retail Banking Asset Management Insurance

Customer deposits

€182bn

Retail active Customers Post offices NBI Split by Business

˜10.4m ˜8,400


* 2018 and 2017 figures are not strictly comparable due to the application of IFRS9 from 01/01/2018

LA BANQUE POSTALE

A quick sum up on H1 2018 results

12INVESTOR PRESENTATION

Consolidated income statement (€ millions)

Main items in the income statementH1 2018 H1 2017 %

Net Banking Income

excluding the home savings provision, on a like-for -like basis

2,926 2,808 +4.2%

+ 5.6 %

Operating expenses (2,369) (2,331)+1.6 %

Gross operating income 558 477 +16.8%

Cost of risk* (49)

11 bps

(71)

16 bps

-31.0 %

Operating income 508 406 +25.2%

Equity method CNP Assurances and AEW Europe** 131 133 -1.5 %

Pre-tax income 639 538 +18.7%

Net income, Group share 422 367 +15.0%

Cost-income ratio 81.4% 83.6% -2.2 points

Capital and liquidity H1 2018

� CET1 fully loaded ratio: 12.4%

� Total Capital ratio: 17.1%

� Leverage ratio: 4.1%*

� LCR liquidity ratio: 152.6%

Business activities H1 2018 (vs 2017)

*With application of the transitional measures for taking into account savings funds centralised within

the Caisse des Dépôts (CDC), pursuant to the European Central Bank decision of 24 August 2016.

Excluding outstanding savings funds centralised at the CDC in accordance with the Delegated Act of 10

October 2014, the ratio is 5%.

� Home loans outstandings: +2.6%

� Personal loans outstandings: +2.5%

� Corporates and local public sector loans outstandings: +33.8%

� Ordinary savings outstandings: +1.5%

� Life insurance outstandings :+0.4%

� Cost of risk : 11 bps

October 2018

*annualised cost of risk after application of IFRS 9 as from 1 January 2018** Essentially CNP Assurances, and AEW for €1.9 million

LA BANQUE POSTALE

A growing loan portfolio with the development of new businesses

13

� New home loans production during H1 2018: €4.5bn

� New consumer loans production: €1.5bn

� Loans granted to corporates and local public sector: €11.3bn

A dynamic loan production …

Outstanding loans to corporates (in €bn)

Home loans outstandings* (in €bn) Consumer loans outstandings (in €bn)

53 54 56 58 59 59

2014

+2,6%

2017H1 2017 H1 201820162015


… and a growing loan portfolio

*Including BPE and Sofiap

Outstanding loans to local public sector (in €bn)

69%

6%

12%

13%

October 2018

2,9

5,36,4

7,8

10,1 10,4

2014

+32,8%

2017H1 201720162015 H1 2018

5.0

H1 2017

5.0

2016

4.9

2017

+2.5%

2015

4.5

2014

4.0

H1 2018

5.1

3,6 4,5

8,0 8,1

10,7 11,0

2014

+34,8%

2017H1 201720162015 H1 2018

LA BANQUE POSTALE 14

Dynamism of Insurance and Asset Management businesses

Asset management: AUM (in billions of euros)

� LBPAM: €222.5 billion in assets under management, up by 15 .1% over the period

� Tocqueville Finance: nearly €1.8billion* in assets under management, up by 8.6%

*Excluding LBPAM delegation

� An overall portfolio of policies nearly 4,611,000, up by 2.1%

� P&C insurance (IARD): portfolio +5.4%

� Health insurance: 192,000 policies (increased by 8.2%)

� Contingency insurance: about 2,723,000 individual policies (stable)

� Life insurance outstandings: €125.4bn (+0,4%), with an increase in the share of unit-linked insurance to 11.3% (up +0.9 po int)

Insurance: trend in policy portfolios (in thousands)


2017

218.5

+15.0%

H1 2018

224.3

H1 2017

195.0

2016

190.0

195

H1 2017

4,515

2,730

1,608 1,695

2,723Contingency

P&C

177

2016

4,453

2,751

1,539

163 192

+2.1%

4,611

H1 2018

Health

2017

4,567

2,711

1,661

LA BANQUE POSTALE

Group Net Banking Income dynamics

15

� Net Banking Income up +4.2%� Positive change in NBI (+5.6%) excluding home loan savings

provision. Restated for the delay in the payment of the compensation for the general interest mission in 2017 by €65 million, growth in underlying NBI works out at 3.2% in H1 2018 compared to H1 2017

� Strong rise in the insurance division (+20.2%) driven by the strong contribution of LBP Prévoyance

� The NBI of the Asset Management unit rose 4.9%

� Commissions accounting for a growing portion of revenue� revenue from commissions remains almost stable at

€1,172 million H1 2018� commissions and others accounting for 42.8% of revenue

� Despite low interest rates, the Net Interest Margin (restated for the home savings provision) increased by €149 million over the period

October 2018

NBI evolution during H1 2018 driven by:

� Low interest rates� Recurring high portion of commissions and fees� Positive effect of diversification activities

Net Banking Income NBI retail banking (excluding home loan savings pro vision)

90

25

+4.2%

H1 2018

2,926

Asset management

2,808

3

InsuranceRetail bankingH1 2017

1,154

5,100

2017

1,177

1,388

2,565

1,537

2016 H1 2018H1 2017

2,691

5,251

2,932

2,319

2,887

2,213

NIM

Commissions and others

LA BANQUE POSTALE

An ongoing effort to improve efficiency

16

2017 Operating expenses breakdown (%)

Focus on external services and other expenses (%)


Growth in LBP’s operating expenses was contained in H1 2018:

� + 1.6% at €2,369 million

� Reflects efforts to contain expenses in a high-growth environment

* Service sharing agreements signed with La Poste represent 78% of « external services and other expenses » and two thirds of total expenses

October 2018

Other operating costs

26%

Back office and IT

22%

Customer advisors/salesforce

30%

Counter and ATM transaction*

22%

488 522

4,619

+0.7%

Employee benefit expenses

External services and other expenses

Amortisation and provision

Taxes and duties

2017

181

3,856

60

2016

4,587

175

3,913

11

LA BANQUE POSTALE

Table of contents

17



Risk management


Capital

LBP Home Loan SFH

Appendices


LA BANQUE POSTALE

A cost of risk reflecting a conservative risk management

18

LBP Group cost of risk (€m)

NPL and coverage ratio – Retail banking in France

LBP Group cost of risk (bps)*

Source: H1 2018 results, slides of the presentation* Cost of risk on loans in bp, based on average outstanding at the start of the period

� Low risk appetite and stringent controls in place

� Total cost of risk maintained at a low level at €49 million. Compared to the retail bank’s outstanding loans, it is low at 11 bps


Source: 2017 annual reports, consolidated financial statements

Cost of risk – Retail banking in France (bps)

181 181

71

192

49

-31.0%

H1 20182017H1 201720162015

11

22

16

2323

-31%

H1 20182017H1 201720162015

LCL

1.9%

BPCE

3.3%


4.4%

BNPParibas

3.3%

LBP*

1.6%

36.5% 61.0%91.0% 82.0% 76.0%

11 12

20

24

12

1816

LCLCrédit Agricole

Caisse d’Epargne

Banque Populaire


BNPParibasLBP*

* Including Corporate Banking

*including total corporate banking

NPL :

Coverage :

LA BANQUE POSTALE

Strong asset quality

19

High quality of assets at H1 2018

€ 70bn centralised regulated savings

€ 88bn loans to customers

€ 32bn Amortised Costs and FVOCI portfolios

€ 35bn short term assets and central bank

€ 13bn others


Credit risk still accounting for most of total RWAs (€bn)

Basel 3 / CRR

Operational RWA

Credit RWA

Market RWA

H1 2018

67.9

9.3

56.7

1.9

2017

65.2

9.3

53.9

2.0

2016

59.6

9.3

48.2

2.1

2015

54.2

9.2

43.8

1.2

2014

52.7

8.9

42.5

1.3

High quality of retail lending portfolios

75.6% of the total portfolio is individual customers’ based

A progressive and controlled diversification of lending

businesses

A conservative financing approach, focusing on stringent

management

A conservative RWA calculation approach following standard

method

High quality securities portfolios (HTM and AFS YE 2017)

69%

84%

72%

Public Service

5%

Sovereign

72%

Bank12%

Corporate

12%

France

87%

Eurozone

9%

OutsideEurozone

4%

75%

Other

25%

AAA and AA

LA BANQUE POSTALE

Table of contents

20



Risk management


Capital

LBP Home Loan SFH

Appendices


LA BANQUE POSTALE

Balance sheet breakdown

21

Balance sheet at 30 June 2018: €237bn, +€6bn vs 01.01.2018

Large customers’ deposits base : €182bn

LBP “centralises” at CDC* all funds deposited on Livret A and

LDD regulated savings accounts and since H1 2016, only half of

LEP regulated savings accounts, with no interest rate or liquidity

risk (it is a pure pass-through): €70bn

Remaining part of the deposit base (not centralised to CDC)

amounting to €112bn:

is used to fund customer lending and mainly home loan

activity

is invested in a portfolio mostly classified in Amortised

Costs (dating back to before LBP was created and mainly

consisting in HQLA bonds) and a credit spread portfolio

Since January 2018, LBP is no longer allowed to overcentralise

its Livret A deposits, but will benefit from a 10-year phase-in

period to absorb the liquidity it will receive back

*CDC: Caisse des Dépôts

LBP balance sheet at 30 June 2018 (€bn)

Customer

deposits/

savings

€182bn

Assets out

of regulated

savings

centralised

at CDC

€168bn


13

35

11

21

21

67

70

Others

Short term assetsand central bank

FVOCI portfolio

Amortised costs portfolio

Other loansto customer

Home loans

Centralised regulated savings

Assets

237

14

9

16

17

107

75

Own funds and hybrids

Other Liabilities and Provisions

Repo

Debt securities

Customer deposits/savingsexcluding regulated savings

Regulated savings

Liabilities

237

LA BANQUE POSTALE

Diversifying funding sources to support lending growth

22

Diversified long term wholesale funding sources (at H1 2018)


In addition to a large customer deposit base, LBP has

diversified wholesale funding sources:

Short Term:

- Interbank funding: €20bn Neu CP programme

- Repo: Large valuable portfolio of high quality

securities

Medium to Long Term:

- Covered bond programme through LBP Home

Loan SFH

- EMTN and Neu MTN programme

- Agreement with SFIL/CAFFIL to refinance French

local authorities loan production

- Access to EIB (European Investment bank) long

term funding

- Long term Repo

In order to develop its lending activity, LBP is gradually

rebalancing its funding sources by increasing its long term

wholesale funding

38%

18%

44%

October 2018

38%

18%

44%

€10.75bn

7%

11%

28%54%

Repo LT

Senior

Tier 2

Covered Bonds

LA BANQUE POSTALE

A strong and stable liquidity position

23

Loan to Deposit ratio

Sound financing structure with a loan to deposit ratio

at 79.6% at 30 June 2018

Group’s LCR and HQLA liquidity buffer (€bn)

LCR: 152.6% at 30 June 2018

- A strong liquidity buffer with 95% of level 1

assets21.8


76%

HQLA

H1 2018

152.6%

2017

157.0%

Level 1

Level 2

H1 2018

24.3

23.0

1.3

67% 75% 75% 74% 81% 80%

H1 201820172016201520142013

Loan to Deposit ratio

LCR

LA BANQUE POSTALE

Table of contents

24



Risk management


Capital

LBP Home Loan SFH

Appendices


LA BANQUE POSTALE

LBP strong capital position (1/2)

25

Prudential ratios – building capital buffersCET1 (€m)

Leverage ratio

*Change in 2016 methodology by a decsision of the ECB of 24 August 2016, La Banque Postale is authorised to integrate gradually and linearly up to 2022 its CDC exposure.: **Estimated, taking into account the delegated act published by the EC on Oct 2014.

11.8125% Total Capital

13.6%

4.1%

1.2%

CRDIV :

� CET1 of 12.4% at the end of H1 2018. On firsttime application, the implementation of IFRS 9standard has a limited negative impact on equityof 140 million euros.

� SREP requirement applicable as of 01/01/2018 stands for 8.3125%

� Stable leverage ratio H1 2018


SREP requirements

8.3125% CET 1 (including P2R)

422

190

140

171

-0.9%

CET130.06.2018

8,443

OthersFTA IFRS9Dividend estimated

ProfitCET131.12.2017

8,522

18.2%19.4%

Tier 1

13.6%14.3%15.1%

CET1

12.4%13.1%13.7%

Total

17.1%

CET1

AT1

T2

H1 2018

17.1

12.4

1.2

3.5

H1 2018

2017

2016

H1 2018 (estimated)

5.0%

4.1%

2017

5.3%

4.5%

2016

5.2%4.6%

Including delegated act**

Without delegated act*

LA BANQUE POSTALE

LBP strong capital position (2/2)

26

Ability to generate capital to support future growt h

Capital management philosophy

� LBP and Group LP are committed to manageadequate solvency levels to support LBP’s strategyas evidenced by several capital actions

Maintaining a prudent approach on capital…

� Consistently above 10% CET1 since LBP creation

… under conservative solvency calculations

� Assessing Pillar 1 risk under standard approach


Basel 2 / 2.5 Basel 3 / CRR

11.4%

12,7% 13,2% 14,2% 15,1% 14,3%

2011 2013 2014 2016 2017

AT1

Core Tier 1

12.7%

First capital increaseof €860m

Capital increase of €228m and AT1 issue of €800m

Capital increaseof €633m

LBP Tier 1 ratios and La Poste Group support

13.7% 13.6%

LA BANQUE POSTALE

MREL considerations

27

Total Loss Absorbing Capacity considerations

� As an “O-SIB” and as of today, La Banque Postale is not subject to TLAC such as defined by the FSB

� La Banque Postale is subject to the MREL defined in the BRRD (Minimum Requirement for own funds and Eligible Liabilities)

� On November 23rd 2016 the European Commission proposed amendments on BRRD. This proposed reform package introduces TLAC in European law and amends MREL

� La Banque Postale intends to issue at least one benchmark per year (including SNP) + private placement

� La Banque Postale foresees limited amount of debt to issue in the future to reach MREL targets


Building capital buffers (phased-in ratios)

October 2018

H1 2018

17.1%

12.4%

1.2%

3.5%

2017

18.2%

13.1%

1.2%

3.9%

2016

19.4%

13.7%

1.4%

4.3%

2015

18.7%

13.2%

1.5%

4.0%

Tier 2

AT1

CET 1

LA BANQUE POSTALE

Table of contents


Overview

Business model and results

Risk Management


Capital

LBP Home Loan SFH

Appendices

LA BANQUE POSTALE

78%

73%

67%

68%

64%

64%

52%

Spain

Italy

Eurozone*

Netherlands

UK

France

Germany


The French housing market

� Low home ownership rate (64%)

� Prudent maturity at inception: 19 years (stable compared to2015)

� Conservative credit market underwriting practices with acautious loan approval policy based on borrowers’ solvabilityanalysis rather than on the value of assets financed. Stabilityof revenues and debt ratio are key issues :

� In 2016 in France, the affordability ratio is stable at30%.

A resilient French housing market and with favorabl e structural factors

Source : ACPR, enquête annuelle sur le financement de l’habitat July 2016 (last update February 2018)

� 97.9% of home loans production have a fixed rate to maturityat YE 2016

� This proportion has been increasing over the year(96.7% in 2015)

� Proportion of flexible loans is still decreasing (1.4%in 2015, 1.2% in 2016).

� Home loans secured by a guarantee provided either by alicensed credit institution or a licensed insurance companyrepresent the majority of the French home loan market andincreased over the year from 56% to 58.3%.

Source : EMF, Hypostat 2017 (2016 figures, except * : 2015)

Mortgage Interest Rate %

European home ownership % (2016)

House-price index (base 100=2007)Source : European Mortgage Federation, Q1 2018 quarterly review

Source : European Mortgage Federation, Q1 2018 quarterly review

LA BANQUE POSTALE 30October 2018INVESTOR PRESENTATION

The French housing market: encouraging trends and long-term favorable potential

� The new home market: building permits and housing starts up+8% and +12.5% at the end of February 2018 on 12 monthcumulative basis

� Home loans at the end of November 2017 on 12 month cumulativebasis (excluding internal renegotiations): continued dynamismwithin a very low-rate context

� Share of renegotiations in production decreased to 11% afterthe peak reached in February 2017 (39%)

France: home loans production (in €bn excluding internal renegociations)

(source Ministère de la Cohésion des territoires, LBP)

France: Building permits and housing starts

source : ACPR, calculs LBP

124

109

141

122

193

180

221

184

112106

114104

125

140

171180

0

20

40

60

80

100

120

140

160

180

200

220

240

20132012 2014 201720162015 2018 (Jun)

2011

Total production

Production out of renegociations

Feb 18: 497,700

Feb 18: 427,700

Building permits Housing starts


La Banque Postale Home Loan strategy

La Banque Postale home loan business

� Low risk profile customers * :- Owner occupied home (83%)- Maturity at inception (19.1 years)- Fixed rate loans (99.8%)- 54.3% of loans are guaranteed by

Credit Logement at December 2017

Loan purpose (2017 production*)

Split by guarantee (2017 production*)

Others

3%

Collateral security

(mortgage, LPRF*)37%

Crédit Logement55%

5%

Guaranteed by other institutions

22%

Repurchase 2%

Other

58%Existing home

New home18%

Doubtful home loans (%)

Source :Banque de France, ACPR, LBP, Crédit Logement* LBP out of BPE and Sofiap

*lender’s priority right to funds

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

French market

LBP *

Crédit Logement

* Source LBP


LBP Home Loan SFH: legal framework

� La Banque Postale Home Loan SFH is a French credit institution, 100% owned byLBP, licensed by the French financial regulator (Autorité de Contrôle Prudentiel etde Résolution – ACPR).

� Minimum contractual over-collateralization (OC) of 8.1% over the 5% legallyrequired, using the same weightings

� Under CRD IV / CRR (article 129) and LCR delegated act, AA- or better ratedcovered bonds with minimum size of €500m are eligible to level 1B for LCR andbenefit from a 10% RW treatment

� Segregation of cover pool assets and legal preferential claim for covered bondsinvestors

� Absolute seniority of payments over all creditors , no early redemption oracceleration

� Regulated covered bonds are exempted from bail-in (BRRD)

A strong legal framework and advantageous treatment for Inv estors

Investor informations : a dedicated website

https://www.labanquepostale.com/en/investors/debt.hlsfh.html#

ECBC Label to ensure fulltransparency on the cover pool


LBP Home Loan SFH: legal framework

Namens-schuldverschreibungenDocumentation

� In June 2014, La Banque Postale has establisheda Programme for the issuance of Germanregistered covered bonds(Namensschuldverschreibungen or “N-bonds”).

� Investors in the N-bonds benefit from a strongprotection with absolute seniority over the SFH'sassets (including the coverpool), by law. They areranked pari passu with the other SFH'sbondholders.

� The N-bonds are registered covered bondsgoverned by German law.

Structure overview

La Banque Postale(Borrower)

Cover Pool(French Home Loans)

Investors

La Banque Postale Home Loan SFH(Covered Bonds Issuer)

Collateralized loans Public Issuances

Private Issuances

Covered Bonds Proceeds

Covered Bonds (OH)

Collateral Security

Collateralized Loans

Principal and Interest


LBP Home loan SFH: a resilient and granular cover pool

Programme Terms

Cover Pool (ECBC template : reporting date 08/27/2018 – cut-off date 07/31/2018)

Programme size € 10bn

Rating AAA by S&P

Currency €

Listing Euronext Paris

Governing law French Law, Ability to issue German law governed Namens-schuldverschreibungen

Amount issued €5,801 bn (13/09/2018)

Maturity type Hard/Soft bullet

Registrar and paying agent for NSV LBBW

Total outstandings € 9,300bn

Number of loans 151,303

Average loan balance € 61,466

Seasoning 56,91 months

WA LTV 65,9%

Indexed WA LTV 64,7%

Owner occupancy 86,15%

Interest rates 100% fixed rates


LBP Home loan SFH: a resilient and granular cover pool

Other non working

3%

Retired

2%

Self employed

5%

Civil Servants

24%

Employees

67%

Loan purpose (2018 *)

Buy to let

12%Second home

2%

Owner occupied86%

Workers by category

1st lien mortgages

28%

Guarantees (CreLog)

72%

Mortgages and guarantees of the cover pool

Others regions

48%

Rhones Alpes

11% Provence-Alpes-Côte d’Azur

10%

Aquitaine6%

Ile-de-France (Paris included)

25%

Geographical distribution

*sources : LBP HL SFH, ECBC Template, reporting date 07/31/2018

LA BANQUE POSTALE

Covered bonds: funding programme

Issuance

Funding plans

� 2018: almost €1bn has already been issued, including €0.75bn of public issuance

� Funding plan for the remaining part of 2018 should be a mix of private placements and one more public issuance, depending on new homeloan production

As of 07th of

may 2018Total Benchmark PP

Issuance 5,776 mn€ 4,500 mn€ 1,276 mn€

October 2018INVESTOR PRESENTATION 36

-20

-18

-16

-14

-12

-10

-8

-6

-4

-2

02/1/17 2/3/17 2/5/17 2/7/17 2/9/17 2/11/17 2/1/18 2/3/18 2/5/18

Mid z spread LBP 2024

LBPSFH 2.375 01/15/2024 Corp

� Regular activity in public issuance since the launch ofthe SFH in 2013, with 7 outstanding bonds

� ECBC label, with monthly reporting on asset qualityavailable on our website


Crédit Logement / Mutual Guarantee Fund (MGF)

Crédit Logement share capital, YE 2017

“Guaranteed agreement reached more than €105 billion in

2017, i.e. for the 3rd consecutive year an overrun of €100 billion

in guaranteed loans.”

Crédit Logement 2017 Annual report :

� Crédit Logement is the market leader on the French residential propertymarket, guaranteeing 1 out of 3 property loans in 2017

� It guarantees residential property loans for individuals, in the form of a jointand several guarantee which aims at covering the bank against defaultborrowers .

� More than 500 000 operations in 2017 have benefited from a CréditLogement guarantee, thus allowing them to finance their property purchaseswithout mortgages

� Crédit Logement YE 2017:

� Outstanding guarantee €325.7 billion and 3 292 165 loans

� Long Term rating (Aa3/stable by Moody’s and AA/low by DBRS)

� Ultimate support by the French banking system

� Mutual Guarantee Fund (MGF) :

� The Crédit Logement financial guarantee is based on the principleof pooling risk, with each borrower contributing to a MutualGuarantee Fund (MGF) :

� The MGF allows repaying the bank in case the borrowerfails

� MGF: €5.32 billion at YE 2017

3%

HSBC France

0%

Others

Individuals

0%

17%

BNP Paribas

16% Crédit Agricole

16%

BPCE

LCL

CM-CIC

7%

SF2 - Groupe La Banque Postale

Crédit Foncier

9%

17%

9%

Société Générale / Crédit du Nord

6%

LA BANQUE POSTALE

Table of contents

38



Risk management


Capital

LBP Home Loan SFH

Appendices


LA BANQUE POSTALE

La Poste Network: a multi-business network with a banking activity


� 17,126 retail outlets in France o.w. 49,3% post offices (8,414) and 50.7% partnerships

� 409 millions of visits

� 96.7% of the French population lives less than 5 km away from a retail outlet

� 83% of the French population stated they had visited their post office at least once to carry out postal or banking transactions in 2016**

� 51,200 employees, with more than 80% working in post offices

An exceptional granularity*

17% of Mail revenue

85% of La Poste Mobile sales

21% of Parcels revenue

100% of net collection for individuals

75% of property loans1

67% of consumer loans

of Chronopost revenue6%

Commercial activity of La Poste Network*

• Le Groupe La Poste 2017 Registration Document** Le Groupe La Poste 2016 Registration Document1) Excluding social housing loans

� 1,122 million transactions completed at its counters and automated postal

machines, i.e :

� 677 million bank transactions and 5.7 million banking advice appointments

completed by banking advisers located in the Network, i.e:

October 2018

LA BANQUE POSTALE

Alternative Performance Measures


Alternative Performance Measures Definition and method of calculationNBI excluding the effect of the home savings provision NBI restated for provisions or reversal of provisions on liabilities related to home savings

accounts (PEL and CEL)

Operating expenses Sum of operating expenses and net depreciation and amortisation and impairment of property, plant and equipment and intangible assets

Cost-income ratio Operating expenses divided by NBI corrected for doubtful interest

Cost of risk in basis points Average commercial banking credit risk costs for the quarter divided by outstandings at the beginning of each quarter

Article 223-1 of the AMF regulations

October 2018

LA BANQUE POSTALE

Contact details

41

Stéphane Magnan [email protected]

Head of Financial Markets and Structured Finance

Dominique Heckel [email protected]

Head of Long Term Funding

Estelle Maturell Andino [email protected]

Head of Financial Communication


LA BANQUE POSTALE

La Banque Postale

La Banque Postale

115 rue de Sèvres

75275 Paris Cedex 06

www.labanquepostale.com

October 2018INVESTOR PRESENTATION 42