i n v e s to r p r e s e n tat i o n - la banque postale · 2020. 7. 31. · this presentation does...

La Banque Postale - 1

I N V E S T O R P R E S E N TAT I O N

2 0 1 9 R E S U L T S – M a y 2 0 2 0

La Banque Postale - 22019 RESULTS - May 2020 INVESTOR PRESENTATION

This document has been prepared by La Banque Postale 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 takes no responsibility forthe 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 documentsincorporated by reference therein) to be issued by La Banque Postale in connection with the offering. The final prospectus, when published, will be available on the website of La Banque Postale (www.labanquepostale.com) and on the website of the Autorité des MarchésFinanciers (www.amf-france.org).

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 La Banque Postale and any recipientsshould 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 decisionin 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 La Banque Postale, its business and affairs.

No representation or warranty, express or implied, is given by or on behalf of La Banque Postale, 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 ofthe 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 La Banque Postale nor any other person assumes any responsibility or obligation to provide the recipients withaccess 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 orconsequential 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 impliedby such forward-looking statements. Neither La Banque Postale 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 La Banque Postale, 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 ofArticle 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 Regulation (EU) 2017/1129 and (iii) persons to whom the communication may otherwise lawfullybe 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 notRelevant 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 Actof 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 ofaccounting 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 ofeconomic 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 otherwisespecified, the sources for the rankings are internal.

DISCLAIMER

http://www.labanquepostale.com/

http://www.amf-france.org/


2019 Results Overview and business model ……..…………...........................3

COVID-19 response …………..…………………………………...10

Sound risk management ……………….…………………..……..24

Capital and MREL requirements .………………........................33

A unique commitment to responsible finance …………..........39

1

2

3

4

5

6

7

8 LBP Home Loan SFH …….…………………...............................44

2019 RESULTS - May 2020 INVESTOR PRESENTATION

9 Appendix ……………………………………..………………..........52

Liquidity and funding …..……………..………………………..….27

2019 Results ………………………..……………………………….13


La Banque Postale: a strategic subsidiary of La Poste

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

La Banque Postale is a strategic subsidiary of La Poste:

La Poste is required by law to hold a majority stake in La Banque Postale

(Postal Services Regulation Act, 2005)

La Banque Postale uses La Poste’s distribution network

La Banque Postale represents a significant part of La Poste’s revenues(1)(2) :

La Banque Postale, a strategic subsidiary of La Poste La Banque Postale’s ownership structure post CNP integration

(1) 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 Group fulfils public interest missions in support of public policies implemented by

the State and local authorities, and may engage in competitive activities.

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

34%

100%

(1)

66%

62.13%

OVERVIEW AND BUSINESS MODEL

La Banque Postale

21.3%

Services-Mail-Parcels

46.7%

Digital Services

2.6%

GeoPost

29.3%

2019 La Poste

Revenue

€26.0bn

(+5.2%)

(1) Breakdown of La Poste’s 2019 revenue excluding Network, other sectors and intercompany

(2) La Banque Postale’s revenue corresponds to its net banking income (NBI)


La Banque Postale: a full-service bank

Since 2006, LBP has gradually expanded its range of services through partnerships and acquisitions

Before 2006, La Poste’s financial services business was mainly focused on savings. Since then, LBP has expanded its product range in line with the strategic objective of becoming a full-service bank:

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

Committed to serving all customers throughout the country


à


Insurance

Life Insurance

Property & Casualty

Health Insurance

Death/disability Insurance

Asset Management

Personal asset management

Corporate asset management

Property fund management

Life Insurance

partnerships

Property & Casualty

partnerships

ASSURANCES IARD

Health Insurance

partnerships

Asset Management partnerships

La Banque Postale: impactful partnerships to quickly get to scale

ASSET MANAGEMENT

25% 5%

40%

70%

60%

62.13%(1)

ASSURANCE SANTE

14%35%

51%


(1) Since 4 March 2020

Retail Banking

Banking solutions for individuals

Mass affluent and private banking portfolio

management

Public sector financing

Corporate banking

(3) Agreement in principle for the acquisition of SFIL by Caisse des Dépôts in 2020,

signed by the French Government, Caisse des Dépôts and La Banque Postale

Public sector finance partnerships(3)

5% 20%75%

100%

Payment services partnerships

50%16.67%

100%(2)

(2) Since 7 April 2020

50%


(1) 18.14% through Sopassure and 2.01% through call option

Transaction rationale Change in ownership structure

Before the transaction

Since 4th March 2020

73.68%

100%

26.32%

20.15%(1)

40.87%

34%

100%

66%

62.13%


Building a large-scale public group

providing banking and insurance services

Creating value through synergies and process

improvements

Strengthening our prudential capital to pursue

business development

Meeting the needs of the local public sector,

corporates and retail costumers

Enhancing our competitive position

La Banque Postale – CNP Assurances: A new leading bancassurance group (1/2)

x

x

x

x

x



NET BANKING INCOME

(€m)

* 2019 reported ** Unaudited pro forma for the new group

5,647

9,231

2019* 2019 pro forma**

OPERATING PROFIT

(€m)

777

3,292

2019* 2019 pro forma**

CET1 RATIO

(%)

12.2

19.8

2019* 2019 pro forma**

EQUITY

(€m)

11,707

18,907

2019* 2019 pro forma**

NBI BY SEGMENT

(%)

2019* 2019 pro forma**

93%

3%

4%

42%

2%

57%

Retail Banking Insurance Asset Management

ATTRIBUTABLE

NET PROFIT

(€m)

780

1,395

2019* 2019 pro forma**

La Banque Postale – CNP Assurances: A new leading bancassurance group (2/2)


La Banque Postale: Sound credit ratings

Last update Long-term rating Outlook Short-term rating Rating by debt

2020/03/27

2020/04/15

A Stable A-1

Senior Preferred: A

Senior Non-Preferred: BBB

Tier 2: BBB-

AT1 : BB

A- Stable F1

Senior Preferred: A-

Senior Non-Preferred: BBB+

AT1: BB+




COVID-19 response …………..…………………………………...10




1

2

3

4

5

6

7

8 LBP Home Loan SFH …….…………………...............................44


9 Appendix ……………………………………..………………..........52


2019 Results ………………………..……………………………….13


COVID-19 response: A strong financial and risk profile reinforced by CNP

Assurances integration

COVID-19 RESPONSE

Reaffirmed very comfortable liquidity position:

High customer deposits amounts still on-going

LCR ratio at 152.8% at end-2019

A strong capital structure (CET1 ratio at 12.2% at end-2019), reinforced with CNP Assurances integration

Strict risk management, with limited exposure to the corporate sector, of which:

Exposure to the automotive sector: less than 0.2% of balance sheet

Exposure to the tourism sector: less than 0.1% of balance sheet

Digital solutions for retail and corporate customers

A well diversified business model:

A more balanced bank and insurance contribution to NBI (57% / 42%(1)) due to CNP Assurances integration

Limited outstanding loan amounts on corporate clients

(1) 2019 unaudited pro forma for the new group


COVID-19 response:

Supporting our people, clients and communities

CommunitiesEmployees

Agile crisis management

governance at all level

25,000 employees working

remotely

Head office volunteers to

reinforce local branches

Internal auditors to reinforce

staff for PGE granting process

Continue to fully pay

employees who cannot work due

to COVID-19 related challenges

Permanent dialogue with

employee representatives to

share all ongoing issues/measures

during the sanitary crisis

Extra cleaning and protective

measures put in place at our

sites, branches and ATMs, and

educating our staff on preventive

actions

COVID-19 RESPONSE

Branches open to the public.

70% of customers covered at a

distance of 3 km

4,000 advisors working

remotely

Consumer credits: Waivers on

late fees and deferral of min

payments for 2 payment cycles

Mortgage payment deferrals of

up to 4 payment cycles for clients

with financial issues

Students loan payment

deferrals up to 6 months.

New student loans with a fixed

0.5% interest rate

Insurance home: 2 months free

Specific measures for Non-life

insurance customers

SME : ~ 5,000 applications

received for state guaranteed loans

(“PGE”) for a total amount of

€1.4bn (as of end of April 2020)

Payment deferrals and

moratoriums

Factoring: special measures to

improve corporate cash flows

Credit Lease: payment deferrals

up to 6 months

€300m in loans at 0% interest

rate for Hospitals

Continued support of local

authorities investments

€1m donation to Institut

Pasteur COVID research while

promoting contactless payment

Support ADIE’s emergency

loans program to small

entrepreneurs

CNP Assurances is supporting

research, caregivers and isolated

people with donations

Fund raising for communities

initiatives (for nurses, hospitals,

homeless /disadvantaged people)

KKBB crowdfunding

platform : €1.2m raised from

20,000 citizens

Goodeed: €135k raised from

more than 500,000 donors

ConsumersCorporate and

local public sector



COVID-19 response …………..…………………………………...10




1

2

3

4

5

6

7

8 LBP Home Loan SFH …….…………………...............................44


9 Appendix ……………………………………..………………..........52


2019 Results ………………………..……………………………….13


Interest rates persistently at a historic low in 2019

-0.35% -0.36% -0.39%

-0,50

-0,25

0,00

0,25

0,50

2013 2014 2015 2016 2017 2018 2019

EONIA still in negative territory,

around -0.4% at end-2019

10-year OAT rate at a historically low

2019 RESULTS

0.82% 0.78%

0.13%

0,00

0,50

1,00

1,50

2,00

2,50

2013 2014 2015 2016 2017 2018 2019

10-year OAT – Average annual rate, %

EONIA – Average annual rate, %


2019 loan growth driven by corporate lending and public sector financing

2019 loan originations

Corporate loans and public sector financing: €37.3bn (+38.0%)

Home loans: €12.4bn (+20.6%)

Consumer loans: €2.7bn (+6.0%)

Loan portfolio

Corporate loans (in €bn)

Home loans(1) (in €bn) Consumer finance (in €bn)+5.5%

2017 201820162015

(1) excluding Dutch home loan portfolio

Public sector financing (in €bn)

2019 outstanding loans

€102.4bn (+10.6%)

62%

10%

23%

5%

54.1 55.8 58.4 60.4 63.8

2019 2017 201820162015 2019

4.5 4.7 4.8 5.24.9

2017 201820162015 2019

4.57.1

8.110.28.7

2017 201820162015 2019

5.37.8

13.2

23.218.5

2019 RESULTS

+17.8%

+5.2%

+25.4%


Higher earnings and a stronger capital base

2019 RESULTS

HIGHER

NET BANKING INCOME

* Net banking income up 0.9% before PEL/CEL effects, and up 2.6% excluding impact of cap on bank incident fees for vulnerable customers

€5,647m

PRE-TAX PROFIT ABOVE €1BN MARK

+1.4%*

HIGHER

ATTRIBUTABLE NET PROFIT

LOW COST OF RISK ROBUST CET1 RATIO

€1,059m €780m

+1.9% +7.5%

15 bps

+1 bp

12.2%

+0.5 pt

SOLID PROFITABILITY

8.4%

ROE


Increased earnings

(1) Excluding the costs incurred to support the integration of CNP Assurances, operating expenses increased by 1.1%

(2) Commercial banking cost of risk

(3) Including a €50m provision for the penalty imposed by the banking supervisor (ACPR)

2019 RESULTS

CONSOLIDATED RESULTS (€ millions)

2019 2018 %

Net Banking Income 5,647 5,570 +1.4%

Net Banking Income excl. PEL/CEL effect 5,579 5,528 +0.9%

Operating expenses (4,692)1 (4,615) +1.7%1

Gross operating profit 955 955 0.0%

Cost of risk2 (178) (183)3 -2.6%

Operating profit 777 772 +0.6%

Share of profits of associates and joint ventures 282 268 +5.2%

Pre-tax profit 1,059 1,039 +1.9%

Income tax (273) (274) -0.3%

Attributable net profit 780 726 +7.5%

Cost-income ratio 83.8% 83.4% +0.3 points


NBI by source (including PEL/CEL effect)NBI by business segment (excluding PEL/CEL effect)

in € millions in € millions

Higher net banking income despite the low interest rate environment

2019 RESULTS

(1) Adjusted for non-recurring costs incurred for the acquisition of Groupama’s minority interest in La Banque Postale IARD

5,114 5,172

261 251153 155

2019

Retail Banking

Insurance

Asset Management

5,5285,579

2018

+0.9%

-4.0%

+14.7%*

+1.1%

+1.7%

2,270 2,338

3,300 3,309

2018 2019

Net Interest Margin

Net fees and commissions

and other revenue

5,6475,570

59%

41%

59%

41%

20192018


Effective cost control

Breakdown of operating expenses(1)

(1) General operating expenses + net depreciation, amortisation and impairment of property and equipment and intangible assets

in € millions

Employee benefit expenses

Depreciation, amortisation

and impairment

Taxes other than on income

(3) Customer advisors & salesforce, Back office & IT, Counter & ATM transaction and operating costs

External services and

other expenses(3)

2019 RESULTS

(2) Excluding the costs incurred to support the integration of CNP Assurances, operating expenses increased by 1.1%

3,749 3,712

566 621

197

104 108

251

4,615

2018 2019

4,692(2)

(78%) (75%)

+ 1.7%(2)

(of which La Poste

service agreements, in %)

The Excellence 2020 re-engineering programme was

actively pursued during the year

€100m in cost savings generated over three years of which

€40m in 2019

New operational efficiency program planned for the

period to 2023

Delivering cost reduction plan


1,039 1,059

579 596

132 118

60 63

772 777

Pre-tax profit

in € millions

Attributable net profit

+1.9%

in € millions

in € millions

Operating profit

2019 solid results

Retail Banking

Insurance

Asset Management

20192018

20192018

2019

726 780

2018

+7.5%+3.0%

-11.0%

+25.8%(1)

+3.7%

2019 RESULTS

+0.6%

(1) Adjusted for non-recurring costs incurred for the acquisition of Groupama’s minority interest in La Banque Postale Assurances IARD


Retail Banking: A solid business dynamic

Consolidated results

(in € millions) 2019 2018 %

Net banking income 5,241 5,156 +1.6%

Operating expenses (4,466) (4,395) +1.6%

Gross operating profit 775 762 +1.7%

Cost of risk (178) (183)(1) -2.3%


The Retail Banking division reported NBI of €5,241m, up 1.6%. Excluding PEL/CEL effect, NBI

came to €5,172m, up 1.1%. Excluding the effect of the cap on bank incident fees for vulnerable

customers (for €69m), NBI was 3% higher at €5,310m. The NIM (including PEL/CEL effect)

increased by 6% in 2019.

The ratio of cost of risk to Retail Banking outstanding loans stood at 15 bps, an increase of 1 point

compared with 2018.

The operating profit of the Retail Banking business rose 3% to €596m.

10 11

124 127

32 31

82 83

66 71

315 324

Demand deposits

Ordinary savings

Home Savings plans

Life insurance

UCITS

Solid financial results

Customer savings and deposits(2)2019 Financial results

+3.0%

in € billions

Bala

nce sh

eet

savin

gs

Man

aged

savin

gs

Loan originations

in € billions

(2) End-of-period

Home loans

27.037.3

2.5

2.710.3

12.44.5

4.5

11.

3

Consumerfinance

Corporate loansand public finance

52.4

39.8

+31.7%

20192018

20192018

2019 RESULTS




(in € millions) 2019 2018 %

2019

pro forma

%

pro forma

Net banking income 251 261 -4.0% 299 +14.7%

Operating expenses (133) (128) +3.7% (133) +3.7%

Gross operating

profit118 133 -11.4% 167 +25.2%

Cost of risk 0 (1) n.m. 0 n.m.

Operating profit 118 132 -11.0% 167 +25.8%

The Insurance division’s contribution to NBI contracted by 4% in 2019 to €251m. Excluding non-recurring costs incurred

for the acquisition of Groupama’s minority interest in La Banque Postale Assurances IARD, the year-on-year change was a

14.7% increase to €299m.

The insurance subsidiaries’ operating expenses rose by 3.7% to €133m, reflecting the full-year impact of opening two new

customer relations centres.

Death/disability, Health and Property & Casualty subsidiaries:

The non-life business enjoyed strong momentum in 2019, thanks to the realignment of the product offer based on customers’

changing needs, the digital transformation and action to streamline policy underwriting and administration processes:

Life Insurance and Term Creditor Insurance:

La Banque Postale’s life oustandings, covering policies sold through all of its distribution channels (LBP Personnes Physiques et

Personnes Morales, BPE, EasyBourse), represented €126.7bn at 31 December 2019. Linked liabilities accounted for 12.3% of

the total versus 10.8% in 2018, reflecting the very favourable market effect and the net inflow of new money into unit-linked

funds.

Strong financial results

2019 Financial results

Contribution to NBI up 14.7%(1)

135165

64

69

49

5014

15261

299+14.7%

2019 pro forma(1)2018

NBI(in € millions)

Number

of policies(in thousands)

4,560

4,647

Death/

disability

P&C

Insurance

Advisory

Health8

Increased contribution from the Insurance business

2019 RESULTS

(1) Adjusted for non-recurring costs incurred for the acquisition of Groupama’s minority interest in La Banque Postale Assurances IARD


A growing Asset Management Division


(in € millions) 2019 2018 %

Net banking income 155 153 +1.7%

Operating expenses (93) (93) +0.3%

Gross operating profit 63 60 +3.7%

Cost of risk 0 0 n.m.


Solid financial results Contribution to NBI up 1.7%

NBI(in € millions)

Assets

under

management(in € billions)

LBPAM

Tocqueville

Finance

135 140

18 16

218

232

153

The asset management business ended the year with operating profit up 3.7%. The increase reflected growth in

the carrying amount of assets under management (up 6.2% to €231.6bn), led by the market effect corresponding for

the most part to last year’s strong stock market performances.

Operating expenses were stable (up 0.3%), despite the development costs incurred during the year and the cost of projects in

progress in the asset management subsidiaries.

LBPAM, the only non-specialised manager committed to building a 100%-SRI offer by the end of 2020

LBPAM is following a three-pronged approach to its SRI strategy:

As of 31 December 2019, LBPAM was already managing €137 billion worth of SRI funds, representing 60% of its total assets

under management. La Banque Postale has confirmed the objective of meeting the 100% SRI target by the end of 2020.

LBPAM’s 100% SRI funds have performed exceptionally well, in terms of both financial yields and ESG criteria. An

international rating organisation ranked the LBPAM ISR Actions Euro, LBPAM ISR Actions Europe and LBPAM ISR Actions

Environnement funds among the five best European funds in 2019 for the quality of the environmental policies of the

companies in the portfolios.

20192018

2019 Financial results155+1.7%

2019 RESULTS



COVID-19 response …………..…………………………………...10




1

2

3

4

5

6

7

8 LBP Home Loan SFH …….…………………...............................44


9 Appendix ……………………………………..………………..........52


2019 Results ………………………..……………………………….13


Source: 2019 Investor Presentations(2) Annualised cost of risk

181 192 183 178

-2.3%

20192018(1)20172016

Crédit Agricole

Group

2.5%

BPCE

2.7%

Société

Générale

3.2%

BNP

Paribas

2.2%

La Banque

Postale

0.7%

LCLCaisses

Régionales CA

Caisse

d’Epargne

Banque

Populaire

Société

Générale

BNP

Paribas

NPL ratio

Retail banking cost of risk (in bps(2))

Retail banking cost of risk (in € millions)

+1 bp -2 bps -4 bps -1 bp +2 bps stable+1 bp

Retail banking cost of risk – French market (in bps(2))

yoy change

NPL and coverage ratios

Source: 2019 Investor Presentations

La Banque

Postale

Relatively low cost of risk reflecting prudent risk policies

(3) Impairment (Bucket 3) at 31/12/19, divided by impaired loans (Bucket 3)

SOUND RISK MANAGEMENT

(2) Annualised cost of risk

42%(3) 55%74% 75% 83%

Coverage

ratio54%

3.1%

Crédit Mutuel

Alliance Fédérale

23 22

1415 15

17

2419

1512

17


2019201820172016

+1 bp


Balance sheet at 31 December 2019: €272bn, +€26bn vs. 31 December 2018

o/w €102bn in outstanding loans, +€10bn

Operational RWA

Credit RWA

Market RWA

A conservative RWA calculation approach using standard method

Gradual and controlled diversification of lending businesses

A conservative financing approach, focusing on disciplined management

High quality assets

High quality assets at 31 December 2019 High quality of loan portfolio

Credit risk still accounting for most of total RWAs

(in € billions)

High quality securities portfolios (HTC and HTCS YE 2019)

Sovereign

Credit

institutions27%

64%

Businesses

9%

Europe

1%8%Outside

Europe

91%France

66%AAA and AA

12%A

Breakdown by sector Breakdown by country Breakdown by rating

22%Other

Basel 3/CRR

8.9 9.2 9.3 9.3 9.4 9,5

42.5 43.8 48.2 53.9 59.466,3

1.3 1.22.1

2.01.1

1,0

2018

69.9

2017

65.2

2016

59.5

2015

54.2

2014

52.7

76.9

2019

SOUND RISK MANAGEMENT



COVID-19 response …………..…………………………………...10




1

2

3

4

5

6

7

8 LBP Home Loan SFH …….…………………...............................44


9 Appendix ……………………………………..………………..........52


2019 Results ………………………..……………………………….13


Balance sheet breakdown

LBP balance sheet at 31 December 2019 (€bn)Key points

Balance sheet at 31 December 2019: €272bn, +€26bn vs. 31 December 2018

Large customer deposit base: €188bn

LBP centralizes to CDC most of the funds deposited in Livret A, LDDS and

LEP regulated savings accounts (since H1 2016, only half of the deposits in LEP

regulated savings accounts are transferred)

The remaining deposits (not centralized to CDC) :

fund customer lending (mainly home loans)

Are invested in securities accounted for amortised cost (primarily bonds

classified as HQLA) and a credit spread portfolio

Since January 2018, LBP is no longer allowed to centralize to CDC more than

the amount deposited in its Livret A accounts, but will benefit from a 10-year

phase-in period to absorb the liquidity it will receive back

Customer

deposits/

savings

€188bn

Assets out of

regulated

savings

transferred

to CDC

€204bn

11

43

15

28

29

10

68

67

Others

Short term assets

and central bank

deposits

FVOCI portfolio

Amortised cost

portfolio

Other customer

loans

Retail

home loans(1)

Regulated savings transferred to CDC

Assets

272

15

10

28

31

112

76

Own funds and hybrids

Other liabilities and provisions

Repos

Debt securities

Customer deposits/savings

excluding regulated savings

accounts

Regulated savings

accounts

Equity &

liabilities

272

Corporate

real estate loans

(1) Including Dutch mortgage loan portfolio (€3.9bn)

LIQUIDITY AND FUNDING


LCR ratio: 152.8% at 31 December 2019 (+7.5 pts vs 2018)

A strong liquidity buffer with 94% of level 1 assets

21.8

76%

HQLA

145.3%152.8%

86.4%90.0%

20192018

LCR ratio

Sound financing structure with an increasing loan-to-deposit

ratio(1) at 90.0% at 31 December 2019 (+3.6 pts vs. 2018)

A strong and stable liquidity position

Loan-to-deposit ratio Group’s LCR ratio and HQLA liquidity buffer

in percent (%)in percent (%) in € billions

31.1

Level 2

Level 1


201920192018

+3.6 pts+7.5 pts

(1) Customer deposits exclude savings assets centralised at Caisse des Dépôts (Livret A, LEP and LDDS)

1.7

29.3


Diversified funding sources to support lending growth

Customer deposits

Breakdown of liabilities at 31 December 2019

Repos

Regulated savings

accounts

Short-term

borrowings

Own funds and hybrids

Bond issuesProvisions and other liabilities(1)

€272bn

(1) Accruals (1.9%), Provisions (1.1%), Fair value adjustments (0.3%), Derivatives (0.2%) and Tax liabilities (0.1%)


In addition to a large customer deposit base, LBP has diversified wholesale

funding sources and specific funding programmes:

Short Term:

Interbank funding: Neu CP and ECP programmes

Repos: Large portfolio of high quality securities with access to dealing

platforms and bilateral trading

Medium to Long Term:

EMTN Covered bond programme and German law registered CB

through LBP Home Loan SFH

EMTN and Neu MTN programme

Agreement with SFIL/CAFFIL to refinance French local authority loan

originations

Access to EIB (European Investment bank) long-term funding

Long term Repos

LBP’s EMTN programme is also used for retail structured notes issuance,

with €779m outstanding.

41%

28%

10%

7%

5%

5%4%


Wholesale funding mix

Wholesale funding sources at 31 December 20192020 funding plan

in percent (%)

€17bn


In the context of the COVID-19 crisis, La Banque Postale’s ALM department is

currently reviewing the perspectives on loan origination and customer deposits with

the business lines. This could lead to some potential significant adjustments for the

2020 funding plan.

La Banque Postale already decided to take the full borrowing allowance for the

TLTRO3, as part as the funding mix to support lending to our clients, especially

SME’s.

Further issuance plans state as below:

Covered bonds: in addition to the €0.75bn already issued in Q1 2020 on

primary markets (benchmark), private placements and some more benchmark

activity (or Tap) could be considered

Senior Preferred: depending on the developments on the net increase of

the loan book, benchmark issuance could be considered to provide another

curve reference to investors and complete de funding mix

Senior Non-Preferred: one benchmark issuance could be considered to

further strengthen the MREL ratio

Furthermore, after launching its inaugural Green Senior Non-Preferred Benchmark

last year and publishing its first allocation and impact report in April 2020 (available

on the institutional website), La Banque Postale is committed to be a

regular issuer out of its green and social bond Framework. With this

respect an inaugural issuance with a social theme, underlining the Bank’s civic-

minded business strategy, should be launched sooner or later this year.

5%

52%

9%

12%

18%

4%

Covered bonds

Senior Preferred

Senior

Non Preferred

Tier 2

Additional Tier 1 Repo LT


Debt maturity schedule

Debt maturity schedule (benchmarks)

in € millions


0

200

400

600

800

1000

1200

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Tier 2 Senior Preferred Covered Bonds Senior Non Preferred Additional Tier 1



COVID-19 response …………..…………………………………...10




1

2

3

4

5

6

7

8 LBP Home Loan SFH …….…………………...............................44


9 Appendix ……………………………………..………………..........52


2019 Results ………………………..……………………………….13


CET1 growth during 2019

CET1 growth

in € millions

CAPITAL AND MREL REQUIREMENTS

800

780

351 341

285

CET1 31/12/2018 Conversion by La

Poste of the fully held

internal AT1

Full year profit Foreseeable dividend OCI Other CET1 31/12/2019

8,155

+15.3%

La Banque Postale’s CET1 ratio improved by 0.5 point over the year to 12.2%, following the conversion into shares in first-half 2019 of the €800 million AT1 bonds

held by La Poste.

9,400


2020 Supervisory Review and Evaluation Process (SREP)

CET1 Ratio

Total Capital Ratio

Following the Supervisory Review and Evaluation Process (SREP)

carried out by the ECB, the latter notified La Banque Postale of its

required consolidated CET1 Ratio applicable as from 1 April 2020.

The ratio is 9.25%(1), breaking down as follows:

4.50% for CET1

2.00% for Pillar 2 additional own funds (Pillar 2 Requirement)

2.50% for a capital conservation buffer (CCB)

0.25% for a buffer for Other Systemically Important Institutions

(O-SIIs)

Following the Supervisory Review and Evaluation Process (SREP) carried out by the ECB, the latter notified

La Banque Postale of its required consolidated Total Capital Ratio applicable as from 1 April 2020.


9.25% for applicable CET1 SREP requirement

1.50% for Additional Tier 1 (ATI)

2.00% for Tier 2 (T2)

8.00%

1.75%

2.50%

0.25%0.25%

Tier I Ratio

4.50%

1.75%

2.50%

0.25%0.25%

Pillar 1

P2R

CCB

O-SIIs

12.7%

Following the Supervisory Review and Evaluation Process (SREP)

carried out by the ECB, the latter notified La Banque Postale of its

required consolidated Tier 1 Ratio applicable as from 1 April 2020.


9.25% for applicable CET1 SREP requirement

1.50% for Additional Tier 1 (ATI)

6.00%

1.75%

2.50%

0.25%0.25%


Minimum required

CET1 Ratio

4.50%

2.00%

2.50%

0.25%

CET1 Ratio as of

31/12/2019

Margin

+3.0 pts9.25%

12.2%

Minimum required

Tier 1 Ratio

Pillar 1

P2R

CCB

O-SIIs

6.00%

2.00%

2.50%

0.25%

10.75%

Tier 1 Ratio as of

31/12/2019

Margin

+2.5 pts

13.2%

Minimum required

Total Capital Ratio

12.75%

Pillar 1

P2R

CCB

O-SIIs

8.00%

2.00%

2.50%

0.25%

Total Capital Ratio

as of 31/12/2019

Margin

+3.4 pts

16.2%

(1) Excluding Countercyclical Capital Buffer (CCyB) on French exposures which was previously set at 0.25% on 1 July 2019, and which was due to rise to 0.50% on 2 April 2020. In response to the COVID-19 crisis, the ratio was “fully relaxed” by the

Haut Conseil de la Stabilité Financière (France’s Higher Council for Financial Stability) on 18 March 2020 and is now set at 0% until further notices.


Regulatory capital and MREL eligible resources


MREL eligible resources at 31 December 2019

in € millionsMREL considerations

The reformed Banking Package, published in the Official Journal on 7 June 2019,

introduces TLAC in European law and amends MREL.

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

the FSB

As of 31/12/2019, La Banque Postale counts with a strong MREL ratio:

o Representing 20.6% of RWA

o MREL eligible resources representing a total amount of €15,862 million

o Including Total Capital of €12,441 million

Distance to MDA and ADIs at 31/12/2019

Distance to MDA : 246 bps

ADIs : €1,199 million

in % of RWA

9,400 12.2%

750 1.0%

2,291 3.0%

2,000 2.6%

1,421 1.8%

DECE 2019 31/12/201931/12/2019

CET1

Additional Tier 1

Tier 2

Senior Preferred

Senior Non Preferred

20.6%15,862


Support for La Banque Postale’s development strategy provided by La Poste Group

La Banque Postale’s Tier 1 ratios and La Poste Group supportCapital management principles

La Banque Postale is committed to maintaining a sound capital position as

evidenced by the track record of La Banque Postale’s strong solvency levels

Moreover, La Banque Postale counts with La Poste Group’s support to

ensure La Banque Postale maintains adequate solvency levels, as evidenced by

several corporate actions

… based on conservative solvency calculations

Assessing Pillar 1 risk using the standard approach

CET1 ratio

AT1 ratio

… Several major operations during 2019

In H1 2019, La Banque Postale’s CET1 was increased through the conversion

by La Poste Group of €800 million worth of AT1 into equity

In H2 2019, La Banque Postale has successfully completed its inaugural AT1

issue, raising €750 million.

First capital

increase

of €843m

Capital increase

of €228m and

AT1 issuance of

€800m

Basel 2/2.5 Basel 3/CRR

11.4% 12.2%

15.5%

12.7% 13.2%

15.7%14.6%

12.8% 13.2%

2011 2013 2014 2016 2017 2018 S1-19 2019

14.0% 14.3% 13.4% 11.7%

12.7%

AT1

conversion of

€800m


Capital

increase

of €633m

AT1

issuance of

€750m


Regulatory indicators well above requirements

CAPITAL LEVERAGE LIQUIDITY

CET1 Tier 1 Total Capital Leverage ratio LCR NSFR

2019 requirements 9.25% 10.75% 12.75% N.A. >100% N.A.

2019 ratios 12.2% 13.2% 16.2% 4.5%(1) 152.8% >100%(3)

2020 requirements 9.25%(2) 10.75%(2) 12.75%(2) N.A. >100% N.A.

(1) In application of the 10/10/2014 EU Commission Delegated Act (excluding savings funds centralised at the level of CDC). The leverage

ratio calculated by applying the May 2019 decision of the European Central Bank (excluding 50% of the centralised savings funds) was 3.9%.

(2) Excluding Countercyclical Capital Buffer

(3) Calculated under the BCBS requirements (QIS)

p

Balance sheet - Regulatory indicators

pppp


p



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1

2

3

4

5

6

7

8 LBP Home Loan SFH …….…………………...............................44


9 Appendix ……………………………………..………………..........52


2019 Results ………………………..……………………………….13


A unique commitment to inclusive banking

A UNIQUE COMMITMENT TO RESPONSIBLE FINANCE

“Access to

banking services”

mission

1.5 millionbeneficiaries

Programme rollover to

2021-2026 supported

by the CCSF (1)

1.6 millionfinancially vulnerable

customers out of 3.3 million

in France

Bank incident fees

capped at €25/month or

€20/month and 200€/year

for “Simplicité” account

holders

Bank fees

frozen For all

retail

customers

in 2019“Simplicité”

account

> 112,000 customers

+41% since 2017

(1) Comité Consultative du Secteur Financier


A unique commitment to local communities


_ over 17,000 outlets,

including 7,740 post offices

_ No.1 bank to local authorities

_ 50% of loans granted to municipalities with

< 5,000 inhabitants

_ No. 1 bank to public hospitals

_ Providing banking services to 7 in 10 social

landlords

LARGE DISTRIBUTION

NETWORK IN MAINLAND

FRANCE AND OVERSEAS

DEPARTMENTS/TERRITORIES

A UNIQUE ROLE SERVING THE

LOCAL PUBLIC SECTOR


... promoting responsible finance


Priority to SRI in asset

management strategies

60% of LBPAM assets

under management qualify as

SRIs

53 government-labelled SRI

funds at the forefront in

France

Award-winning SRI funds

Financing

renewable

energy sources

€1bn worth of projects

financed in 2019

by Corporate &

Investment

Banking

Financing the

local authorities’

energy transition

300 million

green loans refinanced

by green bonds

First €750 million green

bond issue

La Banque Postaleis carbon neutral


Outstanding SRI ratings


Position vs peersRating

B- rating for the 2nd consecutive year

“Prime” Status

1st French bank

2nd bank in international ratings

1st international bank in the "Retail &

Specialised Banks" groupGlobal rating: 69/100 (+2 pts vs. 2017)

Including Commitment score: 80/100

Global rating: 87/100 (+28 pts vs. 2017)

“Leader” Status

1st French bank

6th bank in international ratings

AA rating for the 5th consecutive year Leader bank

A- rating for the 1st ranking

“Leadership” LevelLeader bank

Update year

2019

2019

2020

2019

2019



COVID-19 response …………..…………………………………...10




1

2

3

4

5

6

7

8 LBP Home Loan SFH …….…………………...............................44


9 Appendix ……………………………………..………………..........52


2019 Results ………………………..……………………………….13


La Banque Postale Home Loan strategy

La Banque Postale home loan business

Low risk profile customers:

Owner occupiers (73.2%)

Average term at inception: 15.6 years

Fixed rate loans (99.6%)

53.1% of loans at 31 December 2019 were guaranteed by Crédit Logement

Breakdown by guarantee (2019 originations)

61.7%

Crédit Logement

2.3%

Other guarantee

institutions

In percent (%)

33.5%

Mortgage

Loan purpose (2019 originations)

69.8%

Existing home

7.5%

Transfer

In percent (%)

20.6%

New build

2.1%

Other

Non-performing home loans

ratios (%)

French market

La Banque Postale(1)

Crédit Logement

Source: Banque de France, ACPR, La Banque Postale, Crédit Logement

(1) LBP excluding BPE and Sofiap

2.6%

Others

LBP HOME LOAN SFH

0

0,2

0,4

0,6

0,8

1

1,2

1,4

1,6

1,8

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019


La Banque Postale Home Loan SFH: legal framework

A strong legal framework and advantageous treatment for Investors Investor information: a dedicated website

La Banque Postale Home Loan SFH is a French credit institution, 100% owned by LBP, licensed

by the French supervisory authority (Autorité de Contrôle Prudentiel et de Résolution –

ACPR).

Minimum contractual over-collateralisation (OC) of 8.1% versus legally required minimum of

5%, using the same weightings

Under CRD IV/CRR (article 129) and LCR delegated act, covered bonds with minimum size of

€500m rated AA- or better are eligible to level 1B for LCR and benefit from a 10% RW

Covered bonds secured by segregated asset pool and legal preferential claim for covered bond

investors

Absolute seniority for repayment purposes, no early redemption or acceleration

Regulated covered bonds are exempt from bail-in (BRRD)

ECBC Label to ensure full

transparency of the asset pool

LBP HOME LOAN SFH

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

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


Structure overview Namensschuldverschreibungen documentation

In June 2014, La Banque Postale established a programme for the issuance

of German registered covered bonds, known as

Namensschuldverschreibungen or “N-bonds”.

Investors in the N-bonds benefit from a strong protection with an absolute

priority claim over the SFH's assets (including the cover pool), by law. They

are ranked pari passu with the other SFH's bondholders.

The N-bonds are registered covered bonds governed by German law.

La Banque Postale

(Borrower)

Cover Pool

(French Home Loans)

Investors

La Banque Postale Home Loan SFH

(Covered Bonds Issuer)

Collateralised loans Public Issuances

Private Issuances

Covered Bonds

Proceeds

Covered Bonds

(OH)

Collateral Collateralised

Loans

Principal and

Interest

LBP HOME LOAN SFH

La Banque Postale Home Loan SFH: legal framework


Programme terms

Cover Pool (ECBC template: reporting date 04/27/2020– cut-off date 03/31/2020)

Programme size €30bn

Rating AAA by S&P

Currency €

Listing Euronext Paris

Governing law French Law, ability to issue German law-governed Namensschuldverschreibungen

Amount issued €17,066bn (09/04/2020)

Maturity type Hard/Soft bullet

Registrar and paying agent for NSV LBBW

Total outstanding €23,400bn

Number of loans 294,247

Average loan balance €79,525

Average remaining term 50 months

WA LTV 70%

Indexed WA LTV 66%

Owner occupier loans 89%

Interest rates 100% fixed rates

LBP HOME LOAN SFH

La Banque Postale Home Loan SFH: a strong and granular cover pool


Loan purpose Borrower employment breakdown

68.9%

Employees

2.6%

Other non-

working

In percent (%)

22.5%

Civil Servants

Mortgages and guarantees of the cover pool

59.6%

Guarantees

(Crédit Logement)

40.4%

1st lien mortgages

In percent (%)

Geographical distribution

Sources: LBP Home Loan SFH, ECBC Template, cut-off date 03/31/2020

In percent (%)

89%

Owner occupier

2%

Second home

In percent (%)

9%

Buy to let

La Banque Postale Home Loan SFH: a strong and granular cover pool

12.2%

Auvergne- Rhône-

Alpes

25.8%

Ile-de-France

(Paris included)

40.4%

Other regions10.3%

Occitanie

11.3% Provence-Alpes-Côte d’Azur

4.6%

Self-employed

1.3%

Retired/

Pensioner

LBP HOME LOAN SFH


Covered bonds: funding programme

ECBC label, with monthly reporting on asset quality available on our

website

Regular issuance in both benchmark and PP’s

Issuance

Funding plans

2020: €0,750m wholesale issuance in Q1

Funding plan for the remaining part of 2020 should be a mix of private

placements, taps and potentially some more benchmark issuance, should

the funding need materialize as explained before

Spread trend

LBP HOME LOAN SFH

As of 15th of April 2020 Total Benchmark PP's Retained CB's

Total Issuance € 17,066m € 8,000m € 1,566m € 7,500m

2020 Issuance € 5,750m € 0,750m € 0m € 5,000m

-40

-30

-20

-10

0

10

20

30

40

LBPSFH 02/2028

OAT MAI 2028


Crédit Logement/Mutual Guarantee Fund (MGF)

“Guarantee agreements delivered by Crédit Logement exceeded €100 billon

for the fourth consecutive year in 2018, with €106 billion in guaranteed

loans across more than 480,000 transactions”

Crédit Logement is a market leader on the French residential property market,

guaranteeing 1 in 3 home loans in 2018.

It guarantees home loans, in the form of a joint and several guarantee that protects

the lender against borrower default.

In 2018, more than 480,000 homebuyers were covered by a Crédit Logement

guarantee, allowing them to finance their property purchase without a mortgage.

Crédit Logement:

Outstanding guarantees: €345.8bn corresponding to 3,353,739 loans

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

Backed by the French banking system as a last resort

Mutual Guarantee Fund (MGF):

The Crédit Logement financial guarantee is based on the principle of pooling risk,

with each borrower contributing to a Mutual Guarantee Fund (MGF):

The MGF provides the funds to repay the bank in case the borrower defaults

MGF: €5.65bn at YE 2018

3%

HSBC France

0%

Others

Individuals

0%

17%

BNP Paribas

16% Crédit Agricole

16%

BPCE

LCL

Crédit Mutuel / CIC

7%

SF2 - Groupe La Banque Postale

Crédit Foncier de France

9%

17%

9%

Société Générale / Crédit du Nord

6%

Crédit Logement ownership structure, YE 2018

In percent (%)

Crédit Logement 2018 Annual report

LBP HOME LOAN SFH



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2

3

4

5

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8 LBP Home Loan SFH …….…………………...............................44


9 Appendix ……………………………………..………………..........52


2019 Results ………………………..……………………………….13


Dynamic issuance programme

Listing of financial instruments issued by LBP SA(1)

(1) Excluding Covered Bonds

APPENDIX

ISIN code Debt Nominal (€) Issue Date Coupon call date Maturity

FR0013461795 AT1 750 000 000 20/11/2019 3,875% 20/05/2026 Perp

FR0010969410 Tier 2 750 000 000 30/11/2010 4,375% no call 30/11/2020

FR0011855865 Tier 2 750 000 000 23/04/2014 2,75% 23/04/2021 23/04/2026

FR0013054913 Tier 2 750 000 000 19/11/2015 2,75% 19/11/2022 19/11/2027

FR0013181898 Tier 2 650 000 000 09/06/2016 3% no call 09/06/2028

FR0013286838 SNP 500 000 000 16/10/2017 1% no call 16/10/2024

FR0013349099 SNP 750 000 000 13/07/2018 2% no call 13/07/2028

FR0013415692 SNP 750 000 000 24/04/2019 1,375% no call 24/04/2029

FR0013415692 SP 750 000 000 12/07/2019 0,250% no call 12/07/2026


Alternative Performance Measures Definition and method of calculation

NBI excluding the effect of home savings account provisions NBI restated for provisions or reversal of provisions for liabilities related to home savings accounts (PEL and CEL)

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

Cost-income ratio Operating expenses divided by NBI adjusted for accrued interest on non-performing loans

Cost of risk (in basis points) Average retail banking credit risk costs for the quarter divided by outstanding loans at the beginning of each quarter

Article 223-1 of the AMF regulations

Alternative Performance Measures

APPENDIX


Annabelle Beugin [email protected]

Head of Group Financial and Institutional Communication

Estelle Maturell Andino [email protected]

Head of Group Financial Communication

Guillaume Allanic [email protected]

Group Financial Communication

Gabriel Beya-Tumba [email protected]

Group Financial Communication

Stéphane Magnan [email protected]

Head of Corporate and Investment Banking

Dominique Heckel [email protected]

Head of Long-Term Funding

Contact details

APPENDIX

Financial Communication:

Corporate and Investment Banking:

mailto:[email protected]







La Banque Postale

La Banque Postale

115 rue de Sèvres

75275 Paris Cedex 06

www.labanquepostale.com / Investors

http://www.labanquepostale.com/

i n v e s to r p r e s e n tat i o n - la banque postale · 2020. 7. 31. · this presentation does...

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