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Page 1: La Banque Postale Group · 2020-05-28 · La Banque Postale and La Banque Postale Home Loan SFH take no responsibility for the use of these materials by any person. This presentation

La Banque Postale Group

October 2017

INVESTOR PRESENTATION

Page 2: La Banque Postale Group · 2020-05-28 · La Banque Postale and La Banque Postale Home Loan SFH take no responsibility for the use of these materials by any person. This presentation

LA BANQUE POSTALE

Disclaimer

2 October 2017 INVESTOR 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

responsibility or obligation to provide the recipients with access to any additional information or update or revise any such statements, regardless of whether those statements are affected by the results of new information,

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.

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LA BANQUE POSTALE

Table of contents

3

Senior Non Preferred inaugural transaction

Overview and business model

Key figures and results

Risk management

Funding and Liquidity

Capital

Wrap-up

INVESTOR PRESENTATION October 2017

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LA BANQUE POSTALE

Senior Non Preferred inaugural transaction

4

7-year Senior Non Preferred notes

Nominal amount: €500M no grow

Expected rating: BBB (S&P)

Issuance expected to be fully MREL eligible

INVESTOR PRESENTATION

Rationale

Offering

Contributing to fulfill anticipated MREL requirements

Further optimising the eligible liabilities structure with Non-Preferred Senior

Diversifying funding sources and investor base

La Banque Postale foresees limited amount of debt to issue in the future to

reach MREL targets, meaning one Benchmark per year over the medium

term, potentially combined with private placement opportunities

Strong and supportive shareholding structure

Strong capital base with a total capital at 18,9% as of H1 2017 (phased-in)

Key investments highlights

October 2017

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LA BANQUE POSTALE

Inaugural Senior Non Preferred – Key structural features

5 INVESTOR PRESENTATION

Issuer La Banque Postale

Issuer ratings A stable (S&P): A- stable (Fitch)

Expected Rating BBB (S&P)

Maturity October 2024 (7 year)

Notional Amount €500,000,000

Structure Fixed coupon, bullet

Status Non-Preferred Senior

Ranking of the notes Direct, unconditional, unsecured and senior obligations of the Issuer ranking at all times: (i) pari passu among themselves and with other Senior Non Preferred Obligations (ii) senior to Eligible, Ordinarily Subordinated Obligations and any other present or future claims otherwise ranking junior to Senior Non Preferred Obligations (iii) junior to present and future claims benefiting from preferred exceptions including Senior Preferred Obligations

Denomination EUR 100,000 + EUR 100,000

Early Redemption Event MREL Disqualification Event and Tax Event

Bail-in The Notes are subject to bail-in in accordance with the EU Bank Recovery and Resolution Directive as transposed into French Law

Substitution or variation No

Documentation EMTN prospectus dated 11 September 2017

Listing/ Applicable Law Euronext Paris / French law

October 2017

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LA BANQUE POSTALE

Table of contents

6

Senior Non Preferred inaugural transaction

Overview and business model

Key figures and results

Risk management

Funding and Liquidity

Capital

Wrap-up

INVESTOR PRESENTATION October 2017

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LA BANQUE POSTALE

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

7

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

LBP is considered as a core strategic subsidiary of La Poste:

La Poste is legally bound to keep a majority stake in LBP

(Law of regulation of postal activities, 2005)

LBP is an essential contributor to La Poste income

LBP is, by law, enabled to use La Poste’s staff for its

activities

73.7%

100%

100% *

26.3%

INVESTOR PRESENTATION

The backbone of La Banque Postale

* Caisse des dépôts et consignations 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 2017

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LA BANQUE POSTALE

La Poste : a major multi-business services group

8 INVESTOR PRESENTATION October 2017

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LA BANQUE POSTALE

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

9

1817 2000

Creation of

Efiposte

(manages sight

deposits

collected by La

Poste)

Creation of the first

postal service

mandate named

‘Reconnaissance’

31/12/2005

Efiposte

becomes

La Banque

Postale

2007

Consumer

Finance

2009 2011

Corporate

lending

La Banque

Postale

Crédit

Entreprises

La Banque

Postale

Assurances

IARD

A long history of La Poste’s

financial services But still a short history as a fully-fledged bank

2012

Lending to

French local

authorities

La Banque

Postale

Collectivités

Locales

La Banque

Postale

Financement

P&C

Insurance SFH

BPE

La Banque

Postale

Home Loan

SFH

2013 2014

Sofiap

2015

Partnership

with Aegon

AM

Merger BPE /

LBPGP

Wealth

Management

Unit

Since 2006, LBP has gradually acquired tools and built 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 2017, LBP is ranked No. 3 worldwide and No. 1 in France by

the extra financial rating agency Oekom for its performance in terms of Corporate Social Responsibility

INVESTOR PRESENTATION

2016

LBP

Prévoyance

Merger

Federis/

LBPAM

2017

KissKiss

BankBank

Asset

management Crowdfunding

October 2017

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LA BANQUE POSTALE

La Banque Postale (LBP): A business model based on core business development

and successful partnerships

10

A very active partnership policy with major players in order to accelerate new businesses launches, relying 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

INVESTOR PRESENTATION

40% owned

by LBP

60% of

20% 75% 5%

100%

October 2017

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LA BANQUE POSTALE

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

French banking system

11

Contribution to net income before tax H1 2017

Insurance (including share of profits

from CNP) 27%

Asset Management

7%

Retail Banking 66%

10.6 million active retail customers

13.4% market share on ordinary savings (all savings accounts

except CEL) and 23.2 % market share on the Livret A

5.8% market share on home loans outstandings**

Key figures of retail banking activity at H1 2017

Retail banking in France NBI H1 2017 ***(€bn)

** Including BPE and Sofiap

*** Press releases reports, H1 2017

**** Sofia Study, March 2016

***** Retail banking France, Registration Document or press releases, YE 2016

LBP in the French banking environment

2,9

3,2

4,1

3,2

3,6

1,8 LCL

Crédit Agricole 6,6

Caisses d’Epargne

Banques Populaires

Société Générale

BNP Paribas

LBP

6,2

7,3

6,4

6,7

22,1

Caisses d’Epargne 13,2

Banques Populaires

Société Générale

BNP Paribas

LBP 17,6

LCL

Crédit Agricole

Penetration rates on main current account March 2016 (%)****

Number of branches YE 2016 (m)*****

8,8

2,0

3,0

3,3

4,2

7,0

1,9

Caisses d’Epargne

LCL

Crédit Agricole

Banques Populaires

Société Générale

BNP Paribas

LBP

INVESTOR PRESENTATION October 2017

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LA BANQUE POSTALE

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

12

France AA / Stable (April 2017) AA / Stable (July 2017)

Caisse des Dépôts et Consignations AA / Stable (May 2017) AA / Stable (December 2016)

Le Groupe La Poste A / Stable (December 2016) A+ / Stable (Dec 2016)

Latest rating update November 2016 April 2017

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 2016)

La Banque Postale’s credit ratings

LT debt ratings of La Banque Postale’s stakeholders

INVESTOR PRESENTATION

Fitch affirms La Banque Postale at « A- », stable outlook (04/25/2017) : « LBP’s ratings reflect it established franchise in

deposit collection and housing loans in France, low risk appetite, good asset quality and sound capitalisation, 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 (11/29/2016) : « 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 core

subsidiary of La Poste… in addition, we could upgrade LBP if we raise the long-terme rating on La Poste ».

October 2017

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LA BANQUE POSTALE

Table of contents

13

Senior Non Preferred inaugural transaction

Overview and business model

Key figures and results

Risk management

Funding and Liquidity

Capital

Wrap-up

INVESTOR PRESENTATION October 2017

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LA BANQUE POSTALE

La Banque Postale at a glance

14

2016 Key financial figures

Strong capital and high liquidity at YE 2016

Consolidated results (in €m) YE 2016 YE 2015

Net banking income*

Excluding home savings provision

5,602

5,461

5,745

5,809

Operating income 834 871

Net Income, Group Share 694 707

Cost to income ratio 82.4% 82.1%

CET1 fully loaded: 14.3% **

Total Capital ratio (phased-in): 19.4%

Leverage ratio: 4.6% ***

LCR liquidity ratio: 179%

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: 94% of NBI (YE 2016)

Recurrent revenues

Conservative risk policy

Sound ratings:

A (stable outlook) by S&P

A- (stable outlook) by Fitch

Key facts 2016

94%

3% 3%

Retail BankingAsset ManagementInsurance

Customer deposits €173bn

Retail active Customers

Post offices (YE 2016)

NBI Split by Business

˜10.7m

˜8,900

*scope effect €20m (Ciloger and Federis) **Phased-in ratio at 13,7% ***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 ratio of 5% taking into account the delegated act published by the European Commission on Oct 2014.

INVESTOR PRESENTATION October 2017

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LA BANQUE POSTALE

A quick sum up on H1 2017 results

15 INVESTOR PRESENTATION

Consolidated income statement (€ millions)

Main items in the income statement

H1 2017 H1 2016 %

Net Banking Income

excluding disposal of Visa shares, effects of home loan savings

provision and on a like-for-like basis

2,808

2,974

-5.6%

+ 1.6 %

Operating expenses

On a like-for-like basis

(2,331)

(2,388)

-2.4 %

-2.2%*

Gross operating income 477 586 -18.6%

Cost of risk -71 -84 -15.2 %

Operating income 406 502 +52.9%

Share of income from equity associates 133 87 -7.6 %

Pre-tax income 538 588 -8.5%

Net income, Group share 367 360 +1.7%

Cost-income ratio 83.6% 80.7% +290bp

Capital and liquidity H1 2017

CET1 fully loaded ratio: 13.8% *

Total Capital ratio (phased-in): 18.9%

Leverage ratio: 4.5% **

LCR liquidity ratio: 174%

Business activities H1 2017 vs H1 2016

*Phased-in ratio at 13.6% **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 ratio of 5% taking into account the delegated act published by the European Commission on Oct 2014.

Home loans outstandings : +5,7%

Consumer loans outstandings : +6,3%

Corporates and local public sector loans outstandings : +34%

Ordinary savings outstandings: +1.1%

Life insurance outstandings :+0,8%

*Ciloger for €6M

October 2017

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LA BANQUE POSTALE

A growing loan portfolio with the development of new businesses

16

New home loans production during H1 2017: €8.2bn versus €4.bn in H1 2016 (+77.6%)

New consumer loans production : €1.2bn versus €1.2bn in H1 2016 (+2.8%)

Loans granted to corporates and local public sector : €7.3bn versus €5.3bn in H1 2016 (+34%)

A dynamic loan production …

Outstanding loans to corporates (in €bn)

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

50 53 54 55 56 58

5,7%

H1 2017 2016 2015 2014 2013

3,4 4,0

4,5 4,7 4,9 5,0

+6,3%

2016 2015 2014 2013

1,8 2,9

5,3 6,6

8,8 10,6

+61,8%

2016 2015 2014 2013

INVESTOR PRESENTATION

… and a growing loan portfolio

*Including BPE and Sofiap

Outstanding loans to local public sector (in €bn)

2,2 3,6

4,5 4,2 5,7 5,3

+27%

2016 H1 2016 2015 2014 2013

H1 2016

H1 2017

H1 2016 H1 2017

H1 2016 H1 2017

74%

6%

13% 7%

October 2017

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LA BANQUE POSTALE 17

Dynamism of Insurance and Asset Management businesses

2016

180.6

2015

178.3

+6.9%

Asset management : AUM (in billions of euros)*

LBPAM: €191.3 billion in assets under management, up by 6.9% on a

like-for-like basis

A €23bn management mandate with CNP has been signed in July 2017

and will bring AUM to over €210bn in H2 2017

Tocqueville Finance: €1.7 billion** in assets under management, up by

12.8%

*Assets at end of period, including Fédéris assets in 2015 **Excluding LBPAM delegation

An overall portfolio of policies at almost 4,516,000, up by 3.2%

P&C insurance (IARD): portfolio +9.4%

Health insurance: over 177,000 policies (portfolio up by 25.7%): success of

ACDS (Assurance Coups Durs Santé, or hard times health insurance) and

"Oui Santé" ("Yes to Health" - Aide à la Complémentaire Santé, or

supplementary health insurance assistance)

Contingency insurance: over 2,730,000 individual policies (portfolio stable)

Life insurance : almost 5,115,000 policies, totalling €125bn

Insurance: trend in policy portfolios (in thousands)

4,220

2,758

109

H1 2016

+3.2%

Contingency

P&C

Health

2016

4,374

2,763

1,470

141

2015*

* Proforma 2015 in Health Stock

INVESTOR PRESENTATION

2,758

1,353 1,539

2,751 2,730

1,608

163 177

H1 2017

178.9 191.3

H1 2016 H1 2017

4,453 4,515

2015 2016

October 2017

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LA BANQUE POSTALE

Group net banking income dynamics

18

2016 published

2,578

(+0.7%)

3,024

(-5.1%)

2015 published

1,335

1,639

2,559

3,187 Commissions and other

NIM

• Including effects of home loan savings, scope and Visa

Net Banking Income down -5.6%

Positive change in NBI (+1.6%) excluding home loan savings

provision, disposal of Visa shares and on a like-for-like basis

Strong rise in the insurance division linked to the overall

increase in premiums, an improved loss ratio and good financial

results

INVESTOR PRESENTATION

1,434

(-12,5%)

1,374

(+2,9%)

H1 2016 published

H1 2017 published

44.5%

44.9% 46.0%

48.9%

Growing portion of commissions in NBI

Commissions accounting for a growing portion of revenue

revenue from commissions and other +2.9% in H1 2017;

commissions and other accounting for 45% of revenue.

Low interest rates weighing on the net interest margin: -12.5%

H1 2016 Visa retail banking insurance assetmanagement

H1 2017

2,974

2,808

-5.6%

-107

-73 23

-9

NBI evolution during H1 2017 driven by:

Scope effect coming from the disposal of Visa shares in H1 2016

Low interest rates

Growing portion of commissions and fees

October 2017

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LA BANQUE POSTALE

An ongoing effort to improve efficiency

19

Operating expenses’ breakdown (%)

Focus on external services and other expenses (%)

INVESTOR PRESENTATION

€2,331m (-2.4% yoy) reflect efforts to contain expenses despite

significantly increased charges for subsidiaries to support their

development :

Decrease in Retail banking operating expenses (-2.4% at

€2,236m), including:

- -2.7% for LBP SA

- +5% for Retail banking subsidiaries, in support to their

development

A dedicated plan (“Excellence 2020”) focused on quality of

service and based on an investment programme and a

comprehensive overhaul of major processes

€1bn in investments over the period 2014-2020

A programme to boost operational and commercial efficiency

(reorganising salesforces ; comprehensive review of main front-to-

back processes)

… to generate 10% in annual savings in operating expenses

from the year 2020

240 238

-2.4%

Amortisation and provision

External services and other expenses

Taxes and duties

Employee benefit expenses

H1 2017

2,331

88

1,971

33

H1 2016

2,388

89

2,004

56

Other operating costs

23%

Back office and IT* 22%

Customer advisors / salesforce* 30%

Counter and ATM transactions*

24%

* Service sharing agreements signed with La Poste represent around

80% of « external services and other expenses » and two thirds of

total expenses.

October 2017

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LA BANQUE POSTALE

Table of contents

20

Senior Non Preferred inaugural transaction

Overview and business model

Key figures and results

Risk management

Funding and Liquidity

Capital

Wrap-up

INVESTOR PRESENTATION October 2017

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LA BANQUE POSTALE

A cost of risk reflecting a conservative risk management

21

LBP Group cost of risk (€m)

NPL and coverage ratio – Retail banking in France

LBP Group cost of risk (bps)*

16

21

30

22

14

18

LCL Caisse d’Epargne

Banque Populaire

Société Générale

BNPParibas LBP

Source: H1 2017 reports, consolidated financial statements

-3bp

2016

22

2015

23

2014

* 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 decreased significantly (-15.2%), and commercial

credit activities cost of risk low at 16 bps, despite growth in

outstanding loans and reinforcement in risk coverage

163

181

84

181

71

2015 2014

-15.2%

2016

INVESTOR PRESENTATION

H1 2016

H1 2017

23 19

16

H1 2016 H1 2017

1.8%

3.4%

4.6%

3.4%

1.7%

LCL BPCE Société Générale

BNPParibas LBP

Source: H1 2017 reports, consolidated financial statements

Cost of risk – Retail banking in France (bps)

34.8% 62.0% 89.0% 82.7% 75.1%

October 2017

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LA BANQUE POSTALE

Strong asset quality

22

High quality of retail lending portfolios

81% of the total portfolio is individual customers’

based

A progressive and controlled diversification of

lending businesses

A conservative financing approach, focusing on

stringent management

High quality of investment portfolios (HTM and AFS YE 2016)

INVESTOR PRESENTATION

Corporate

5%

Bank

25%

Sovereign 69%

Other

28%

AAA and AA

72%

84%

6% 10%

France

Outside Euro zone

Euro zone

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

Basel 2 / 2.5 Basel 3 / CRR

30.0

8.3 Operational RWA

2013 2012

Market RWA

2014

Credit RWA

39.1

0.8

45.2

8.5

35.9

0.8

2015 2016

8.9

42.5 43.8

2.1

48.2

1.3

52.7 54.2

1.2

9.2

59.5

9.3

2.6

51.0

62.9

9.3

H1 2017

* RWA computed following the standard method

October 2017

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LA BANQUE POSTALE

Table of contents

23

Senior Non Preferred inaugural transaction

Overview and business model

Key figures and results

Risk management

Funding and Liquidity

Capital

Wrap-up

INVESTOR PRESENTATION October 2017

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LA BANQUE POSTALE

Balance sheet breakdown

24

Balance sheet at 30 June 2017 2016: €233bn, +€3bn vs YE 16

Large customers’ deposits base : €176bn

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): €71bn

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

amounting to €101bn:

is used to fund customer lending and mainly home loan

activity

is invested in a “SSA bond” portfolio mostly classified in

Held To Maturity (dating back to before LBP was created

and mainly consisting in HQLA bonds) and a credit

spread portfolio

*CDC: Caisse des Dépôts et Consignations

LBP balance sheet at 30 June 2017(€bn)

Customer deposits/

savings €176bn

13

19

21

21

58

71

Others

Short term assets and Central Bank

AFS Portfolio

HTM Portfolio

Home loans

Centralised regulated savings

Assets

233

14

20

13

101

75

10

Own funds and hybrids

Other Liabilities and Provisions

Repo

Debt securities

Customer deposits/savings excluding regulated savings

Regulated savings

Liabilities

233

Assets out of regulated

savings centralised

at CDC €162bn

INVESTOR PRESENTATION

30

Other loans to customers

October 2017

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LA BANQUE POSTALE

Diversifying funding sources to support lending growth

25

Diversified long term wholesale funding sources (at YE 2016)

INVESTOR PRESENTATION

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:

- Access to EIB (European Investment bank) long

term funding

- Agreement with SFIL/CAFFIL to refinance French

local authorities loan production

- Senior unsecured EMTN programme

- Neu MTN programme (in progress)

- Covered bond programme through LBP Home

Loan SFH

In order to develop its lending activity, LBP is gradually

rebalancing its funding sources by increasing its long term

wholesale funding

Tier 2 and Senior 38%

18%

44%

Covered bonds

LT Repo

Total: €8,1bn

October 2017

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LA BANQUE POSTALE

A strong and stable liquidity position

26

Loan to deposit ratio

Well diversified euro wholesale funding investor

base with gradual development towards dollar

investors

Sound financing structure with a loan to deposit ratio

at 75,6%* at 30 June 2017

* Loan to deposit ratio, excluding Livret A and LEP and LDD deposits centralised at the Caisse

des Dépôts et Consignations

Group’s LCR and liquidity buffer (€bn)

LCR: 174% at 30 June 2017

- A strong liquidity buffer with 96% of level 1 assets

H1 2017

174.3% 179.5%

Level 1

Level 2

H1 2017

22.7

21.8

0.7

INVESTOR PRESENTATION

2016

59% 67% 75% 75% 74%

2012 2013 2014 2015 2016 H1 2017

L/D ratio

76%

The liquidity coverage ratio (LCR) calculation underwent a revision at 31 March 2017 due to a change in the treatment of the European Central Bank’s marginal facility deposit. The variation displayed corresponds to the relative variation between the LCR at 30 June 2017 and the LCR at 31 December 2016 recalculated according to the new method (i.e. 179.5%). The published LCR for 31 December calculated according to the old method was 260%.

HQLA

October 2017

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LA BANQUE POSTALE

Table of contents

27

Senior Non Preferred inaugural transaction

Overview and business model

Key figures and results

Risk management

Funding and Liquidity

Capital

Wrap-up

INVESTOR PRESENTATION October 2017

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LA BANQUE POSTALE

LBP strong capital position (1/2)

28

Prudential ratios – building capital buffers (phased-in) CET1 phased-in (€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 ip to 2022 its CDC exposure.:

**Estimated, taking into account the delegated act published by the EC on Oct 2014.

2016

5,2% 4,6%

2015

5,2%

3,5%

Including delegated act**

Without delegated act*

367 154

+4.4%

CET1 30.06.2017

8,527

Others Dividend project

-165

Profit

CET1 31.12.2016

8,171

Total

19.4% 18.7%

Tier1

15.1% 14.7%

CET1

13.7% 13.2% H1 2017

2016

2015

CET1

AT1

T2

H1 2017

18.9%

13.6%

1.2%

4.1%

CRDIV :

Fully loaded CET1 of 13.8% at H1 2017: LBP

displays a higher fully loaded ratio than its

phased-in CET1 ratio because of significant

stock of unrealised gains

EBA’s 2016 stress tests results prove LBP’s solid

resilience and ability to face an adverse context :

The adverse imposed scenario would lead La

Banque Postale to reach a phased-in CET 1 ratio

of 9.7% at YE 2018.

INVESTOR PRESENTATION

5,3% 4,5%

H1 2017

13.6% 14.8%

18.9% SREP

requirements

7.625% CET 1 including P2R

11.125% Total Capital

October 2017

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LA BANQUE POSTALE

LBP strong capital position (2/2)

29

Ability to generate capital to support future growth

Capital management philosophy

LBP and Group LP are committed to manage adequate

solvency levels to support LBP’s strategy as 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

INVESTOR PRESENTATION

Basel 2 / 2.5 Basel 3 / CRR

11.4%

12,7% 13,2% 14,2%

15,1% 14,8%

2011 2013 2014 2016 H1 2017

AT1

Core Tier 1

12.7%

First capital

increase

of €860m

Capital increase of

€228m and AT1

issue of €800m

Capital increase

of €633m

LBP Tier 1 ratios and La Poste Group support

13.7% 13.6%

October 2017

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LA BANQUE POSTALE

MREL and TLAC considerations

30

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

MREL As of 23/11/16 reform package

TLAC As of FSB 2015 termsheet

Covered Entities All EU credit

institutions

International G-SIBs All EU credit institutions

Denominator Total liabilities and

own funds

RWAs / Leverage ratio

exposure

RWAs / Leverage ratio exposure

Minimum Ratio Bank specific level,

no legal floor

16% initially then 18%

RWAs+ Capital Buffers /

6% then 6,75% Leverage

ratio

Bank specific level, capped at

Max [2x(P1+P2R) ; 2 x

Leverage requirement], with

guidance on top

Floor for G-SIBs (TLAC level)

Eligible

Liabilities

Wider definition

than TLAC (senior

preferred debt is

eligible without

limitation)

Subordinated

instruments

Possibility for pari

passu instruments to

excluded liabilities

limited to 3.5%

Closer to TLAC

3.5% limitation applies to the

G-SIBs floor

Resolution authority may

require partial or full

subordination for bank specific

requirement

Date Starting Jan’16;

phase-in period

Jan’19 No specification on phase-in

period

INVESTOR PRESENTATION

Building capital buffers (phased-in ratios)

MREL As of BRRD1

TLAC vs. MREL

12,7% 13,2% 13,7% 13,6%

1,5% 1,5% 1,4% 1,2% 2,8%

4,0% 4,3% 4,1%

2014 2015 2016 H1 2017

Tier 2

AT1

CET 1

17,0% 18,7%

19,4% 18,9%

October 2017

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LA BANQUE POSTALE

Table of contents

31

Senior Non Preferred inaugural transaction

Overview and business model

Key figures and results

Risk management

Funding and Liquidity

Capital

Wrap-up

INVESTOR PRESENTATION October 2017

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LA BANQUE POSTALE

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

32 INVESTOR PRESENTATION

17,159 retail outlets in France o.w. 51,6% post offices (8,835)

and 48.4% partnerships (versus 46% in 2015)

436 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

53,700 employees, with more than 80% working in post offices

An exceptional granularity*

17% of Mail revenue

80% of La Poste Mobile sales

25% of Parcels revenue

100% of net collection for individuals

80% of property loans**

67% of consumer loans

of Chronopost revenue 7%

Commercial activity of La Poste Network*

* Le Groupe La Poste 2016 Registration Document

** Excluding social housing loans

1,175 million transactions completed at its counters and automated postal machines, i.e :

622 million bank transactions and 7 million banking advice appointments completed by banking advisers located in the Network, i.e :

October 2017

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LA BANQUE POSTALE

Alternative Performance Measures

33 INVESTOR PRESENTATION

Alternative Performance Measures Definition and method of calculation

NBI 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 2017

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LA BANQUE POSTALE

Contact details

34

Stéphane Magnan [email protected]

Head of Financial Markets

Dominique Heckel [email protected]

Head of Long Term Funding

Denys Médée [email protected]

Head of Balance Sheet Management and Relations with Supervisory Authorities

INVESTOR PRESENTATION October 2017

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LA BANQUE POSTALE

La Banque Postale

La Banque Postale

115 rue de Sèvres

75275 Paris Cedex 06

www.labanquepostale.com