la banque postale group · 2020-05-18 · la banque postale a solid and stable shareholding...
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La Banque Postale Group
November 2016
CREDIT UPDATE
LA BANQUE POSTALE
Disclaimer
2 November 2016 CREDIT UPDATE
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.
LA BANQUE POSTALE
Table of contents
3 November 2016 CREDIT UPDATE
Overview
Business model and results
Funding and Liquidity
Capital
Wrap-up
LA BANQUE POSTALE
A solid and stable shareholding structure and a core subsidiary for Le Groupe La Poste
4 November 2016 CREDIT UPDATE
LBP is wholly-owned by La Poste, the French Postal Service
La Poste is itself 73.7% held by the French government and
26.3% by La Caisse des Dépôts (100% held by the French
State) and is structured around 5 business units :
Services-Mail-Parcels (mail and parcels, logistics
solutions and local services),
GeoPost (domestic and international express services),
La Banque Postale (financial services),
La Poste Network (servicing its business units) and
Digital Services (solutions and services in the area of
digital transformation, digital marketing and digital trust).
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
A strong shareholding structure – the backbone of LBP
73.7%
100%
100%
26.3%
LA BANQUE POSTALE
La Banque Postale (LBP) : the heir of La Poste’s Financial Services
5 November 2016 CREDIT UPDATE
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 2006, LBP developed its product range and became a fully-fledged retail bank
• Diversification of LBP lending activities has enhanced LBP role in financing the French real economy
LA BANQUE POSTALE
La Banque Postale (LBP): A business model based on core business development
and successful partnerships
6
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 / discretionnary
management
Consumer finance
Public sector lending
Non-profit organisations & Corporate
banking
Life assurance
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
COLLECTIVITES
LOCALES
65%
owned
by LBP
Partnership in Public sector
lending
Partnership in
Life assurance
20.15% consolidated 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
Partnership in Asset
Management
5% of
Retail Banking
November 2016 CREDIT UPDATE
70%
owned
by
LBP
35% of
14% of
LA BANQUE POSTALE
La Banque Postale (LBP): a business model based on 3 business lines
7 November 2016 CREDIT UPDATE
Core focus on retail banking A leading position in the French banking market
Retail Banking
Retail banking
Private banking /
discretionary
management
Consumer finance
Public Sector lending
Non-profit
organisations &
Corporate banking
One of the rare pure
player in French retail
banking
Insurance
Life assurance
Contingency
P&C
Health Insurance
Partnership with CNP
Assurances
(20.15% consolidated)
Asset management
for individuals
Asset management
for companies
Real estate
LBPAM is the 5th
largest asset
management
company in France*
(€177,6bn AUM)
Asset Management
Contribution to net income before tax H1 2016
72%
6%
Retail Banking
Asset Management
Insurance
23%
* Source: AFG: the French Asset Management Association (2014)
10.8 million active retail customers
13.8% market share on ordinary savings (all savings accounts
except CEL) and 23,7% market share on the Livret A
5,6% market share on home loans outstandings
Key figures of retail banking activity at YE 2015
Retail banking in France NBI H1 2016 ** (€bn)
** H1 2016, press releases reports, excluding home savings provisions
*** Sofia Study, March 2016
**** Registration Document or press releases, YE 2015
LBP in the French banking environment
1,7
3,7
3,2
4,2
3,3
7,1
2,8
LCL
Crédit Agricole
Caisses d’Epargne
Banques Populaires
Société Générale
BNP Paribas
LBP
6,2
7,3
6,4
6,7
LCL
Crédit Agricole 22,1
Caisses d’Epargne 13,2
Banques Populaires
Société Générale
BNP Paribas
LBP 17,6
Penetration rates on main current account March 2016 (%)***
Number of branches YE 2015 (m)****
1,9
7,0
4,2
3,3
3,1
2,2
9,3
LCL
Caisses d’Epargne
Société Générale
BNP Paribas
LBP
Banques Populaires
Crédit Agricole
LA BANQUE POSTALE
A solid and stable shareholding structure, reflected in strong credit ratings
8 November 2016 CREDIT UPDATE
Latest rating update 2015-2016 2015-2016
France AA / Stable (October 2016) AA / Stable (June 2016)
Caisse des Dépôts et Consignations AA / Stable (October 2016) AA / Stable (May 2016)
Le Groupe La Poste A / Stable (October 2016) A+ / Stable (Dec 2015)
Latest rating update October 2016 May 2016
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
LA BANQUE POSTALE
Table of contents
9 November 2016 CREDIT UPDATE
Overview
Business model and results
Funding and Liquidity
Capital
Wrap-up
LA BANQUE POSTALE
First half 2016 : a growing loan portfolio with the development of new businesses
10
New home loans production down 24.9% yoy to €4,2bn
New consumer loans production up 1.9% yoy to €1,2bn
€5,3bn of loans granted to corporates and local public sector (down 5.7% yoy) with €2bn to corporates and €3,2bn to local public sector (including social housing associations)
A resilient loan production following an unusual 2015 year
Outstanding loans to local authorities (in €bn)
Home Loans
Consumer Loans
Loans to Businesses
Loans to Local
Authorities
Home loans outstandings (in €bn) Consumer loans outstandings (in €bn)
Outstanding loans to businesses *(in €bn)
555454535045
2012
+0,8%
H1 2016 2015 H1 2015 2014 2013
4,74,5
3,42,6
4,34,0
+9,7%
H1 2016 2015 H1 2015 2014 2013 2012
4,24,53,83,6
2,2
0,2
+9,4%
H1 2016 2015 H1 2015 2014 2012 2013
4,32,9
1,80,5
6,65,3
H1 2015
+53,0%
H1 2016 2015 2014 2013 2012
* Including social housing associations
November 2016 CREDIT UPDATE
LA BANQUE POSTALE
First half 2016 : performance
11 November 2016 CREDIT UPDATE
NBI : €2.9bn, +1.6%* vs June 2015
Operating expenses under control : +0.5%
Cost to Income ratio standing at 80.7%
A commercial credit activities cost of risk stable at 19 bps
Consolidated results (in €m)
Main lines of the consolidated income statement
June 2016 June 2015 %
Net banking income
Excluding the home savings provision, on a like-for-like basis
2,974
2,929
+1.6 % -6.3 %*
Operating expenses
On a like-for-like basis
-2,388 -2,376
+0.5% -0.1 %**
Gross operating income 586 552 +6.2 %
Cost of risk -84 -73 +14.5 %
Operating income 502 479 +4.9 %
CNP at equity 87 111 -21.9 %
Profit before tax 588 589 -0.2 %
Net Income, Group Share 360 370 -2.6 %
Cost to income ratio 80.7 % 81.5 % - 0.8 point
* Scope effect of €22 million (Ciloger, Fédéris Gestion d’Actifs) ** Scope effect of €14 million (Ciloger, Fédéris Gestion d’Actifs)
LA BANQUE POSTALE
First half 2016 : Focus on efficiency
12 November 2016 CREDIT UPDATE
An ongoing effort to improve efficiency across all fronts
First half 2016 group's operating expenses LBP Group cost to income ratio (%)
Operating expenses composition H1 2016 (%)
€2,388m (+0.5% yoy) reflecting efforts to contain
expenses despite the gradual implementation of major
transformation programs including:
IT major transformation program improving
distribution and banking platforms efficiency
A moderate growth of expenses linked to the
development of subsidiaries :
Stability of Retail banking operating expenses (-
0.2% at €2,292m including -0.4% for LBP SA
and +5.1% for Retail banking subsidiaries)
-0,8
H1 2016
80,7
2015
82,1
H1 2015
81,5
2014
82,7
2013
84,7
Focus on external services and other
expenses
* Related to the Service Level Agreement signed with La Poste
10% 2%
84%
5%
Employee benefits expensesTaxes and DutiesExternal services and other expensesAmortisation and provision
Other expenses (running costs)
ATM and other agreements*
Customer advisors / salesforce*
Back office & IT*
Counter transactions*
100%
20%
3%
31%
23%
24%
LA BANQUE POSTALE
First half 2016 : a cost of risk under control
13 November 2016 CREDIT UPDATE
LBP has stringent risk controls in place
LBP Group cost of risk (€m)
Group cost of risk / group gross operating income
Credit activities cost of risk (bps)*
CM11 Group
15%
Crédit Agricole Group
26%
BPCE
19%
Société Générale
25%
BNPParibas
21%
LBP
14%
Source: First half 2016 press releases of French banks
stable
H1 2016
19
2015
23
H1 2015
19
23
2013
25
2014
* Cost of risk on loans in bp, based on average outstanding at the start of the period
Low risk appetite and low earnings volatility
throughout the cycle
Total cost of risk increased by 14.5% but
commercial credit activities cost of risk remains
low at 19 bps, despite growth in outstanding
loans
Outstanding consumer loans: +9.7% yoy to
€4.7bn
Outstanding home loans: +0.8% yoy to €54.6bn
Total outstanding loans*: +5.1% yoy to €70.9bn
84
181
73
163154
+14,5%
H1 2016 2015 H1 2015 2014 2013
* Loans: customers and corporates
LA BANQUE POSTALE
Dynamism of insurance and asset management businesses
14
Asset management
Assets Under Management (€bn)* Portfolio evolution (in 000’s)
LBPAM / SAM : €177,6bn AUM (including Fédéris
Gestion d’Actifs for €27bn) +1.2% on a like-for-like
basis
Outflows on institutional customers (mainly on monetary
funds offset by constructive market conditions)
Launching of a new range of five flexible allocation
funds with managed risk for retail customers,
illustrating the benefits of the new partnership between
LBPAM and Aegon Asset Management :
More than €310m collected since the launch in mid-may
and €170m already managed, reflecting customers’ keen
interest in these flexible products in a low interest rate
environment
Positive net inflow on retail customers
4,8 1,31,3
177,6
149,3
H1 2016 H1 2015
LBPAM / SAM / + Fédéris H1 2016
Tocqueville
Ciloger
* Scope effect linked to La Banque Postale Gestion Privée and Xange Private Equity / Tocqueville :
assets excluding LBPAM management delegation
Insurance
An overall portfolio of policies reaching almost 4,375,000, an
increase of 6%
P&C Insurance: 279,000 new policies (portfolio +16%)
Health Insurance: more than 64,000 new policies (portfolio +52%) :
success of new products ACDS ( « hard times » health insurance)
and « Oui Santé » (supplementary health insurance assistance)
Contingency : nearly 165,000 new individual contingency policies
(stable portfolio) : end of the marketing of the single premium
funeral policy in sept 2015, due to regulatory changes
93
141
H1 2016
2 763
1 470
H1 2015
2 766
1 269 Contingency
P&C
Health
November 2016 CREDIT UPDATE
LA BANQUE POSTALE
Table of contents
15 November 2016 CREDIT UPDATE
Overview
Business model and results
Funding and Liquidity
Capital
Wrap-up
LA BANQUE POSTALE
Balance sheet composition
16
Balance sheet at H1 2016: €226 bn, +€7bn vs YE15
Large customers’ deposits base : €170bn
LBP “centralises” all funds deposited on regulated savings
accounts (Livret A, LDD and LEP*) to CDC**, with no
interest rate or liquidity risk (it is a pure pass-through):
€74bn
Remaining part of the deposit base (not centralised to
CDC) amounting to €96bn:
is used to fund customer lending and mainly home
loan activity
is invested in a “SSA bond” portfolio mostly
classified in HTM*** (existing before LBP creation
and mainly consisting in HQLA bonds) and a credit
spread portfolio
* Starting from the beginning of H2 2016, 50% of LEP savings accounts are no loger centralised
at the CDC
** CDC: Caisse des Dépôts et Consignations
*** Held to Maturity
LBP balance sheet at H1 2016 (€bn)
Customer deposits/
savings €170bn
12
5
22
18
22
71
74
Others
Reverse Repo
Short term assets and Central Bank
AFS Portfolio
HTM Portfolio
Loans to customers
Regulated savings centralised at CDC
Assets
226
13
8
18
15
96
74
Own funds and hybrids
Provisions
Other Liabilities
Repo
Debt securities
Customer deposits/savings excluding regulated savings
Regulated savings centralised at CDC
Liabilities
226
3
Assets out of regulated
savings centralised
at CDC €152bn
November 2016 CREDIT UPDATE
LA BANQUE POSTALE
Strong assets’quality
17
High quality of retail lending portfolios
86% of the total portfolio is individual customers’
based
Conservative financing approach, focusing on
stringent management
Doubtful loan ratios * (YE 2015)
Desensitisation to peripheral SSA** (in €bn, YE 2015) HTM and AFS portfolio composition and ratings (YE 2015)
November 2016 CREDIT UPDATE
2015
6,9%
0,9%
2014
4,6%
0,8%
Home loans
Consumer Loans
* Impaired loans / gross loans
1,20,8
1,3
0,6
0,3
1,2
0,0
2,0
2014 2013 2015
Ireland
-58%
Italy
Spain
0,9
2,5
0,0
High quality of investment portfolios
A and others
29%
AAA and AA
71%
Others
6%
Banking 28%
Sovereigns 66%
** Sovereigns, Supras and Agencies, direct exposures
LA BANQUE POSTALE
LBP funding structure and strategy
18 November 2016 CREDIT UPDATE
In addition to the large customer deposit business,
LBP has diversified wholesale funding sources:
- Access to the inter-banking market: €20bn
French CD program
- Large repo eligible portfolio of high quality
securities, consisting mainly of rapidly
accessible Government bonds
- Access to EIB (European Investment bank)
long term funding
- Agreement with SFIL/CAFFIL to refinance
French local authorities loan production
- Senior unsecured EMTN program
- A covered bonds program through LBP Home
Loan SFH
In order to develop its lending activity, LBP is heading
towards a gradual rebalancing of its funding sources
by increasing its long term wholesale funding
Diversified long term wholesale funding sources (at H1 2016)
Diversifying funding sources to support its lending diversification
17%
41% 10%
32% LT Repo
Covered
Senior
Tier 2
€8,6bn
Outstanding LBP Tier 2 Benchmark bonds
In June 2016, LBP priced a €500mn, 3.00% 12-year Bullet Tier 2 transaction
In Nov 2015, LBP priced a €750mm 2.750% 12NC7 Tier 2 transaction
In April 2014, LBP priced a €750mm 2.750% 12NC7 Tier 2 transaction
In November 2010, LBP priced a €750mm 4.375% 10-year Bullet Tier 2 transaction
LA BANQUE POSTALE
LBP liquidity position
19 November 2016 CREDIT UPDATE
A strong and stable liquidity position LBP loan to deposit ratio (€bn)
96
Centralised deposits
Customers’deposits
74
71
Customers’loans
Ratio L/D : 74%
Low reliance on wholesale funding
Sound financing structure with a loan to deposit
ratio of 74%* at H1 2016
* Loan to deposit ratio, excluding Livret A and LEP and LDD deposits centralised at the Caisse
des Dépôts et Consignations
LBP Group’s LCR and liquidity buffer (€bn)
LCR: 224% at H1 2016 (estimated)
- A strong liquidity buffer with 85% of level 1
assets
H1 2016
224%
2015
218%
3,1
Level 1
Level 2
H1 2016
21,2
18,1
LA BANQUE POSTALE
Table of contents
20
Overview
Business model and results
Funding and Liquidity
Capital
Wrap-up
November 2016 CREDIT UPDATE
LA BANQUE POSTALE
LBP capital position
21
Strong capital position
H1 2016 prudential ratios – building capital buffers CET1 prudential capital (€m)
Leverage ratio
* Estimated, taking into account the delegated act published by the EC on Oct 2014, subject to ECB authorization.
Excluding centralised deposits: €74bn out of €226bn
5,0%
H1 2016
-10 bps
3,4%
2015
5,2%
3,5% Including delegated act*
Without delegated act
360
CET1 30.06.2016
+2%
-162
Profit
-25
Dividend project
7 328
Others CET1 31.12.2015
7 155
12,7% 13,2% 13,4%
CET1
14,2% 14,7%
18,7%
14,9%
Tier1
17,0%
+20 bps 19,4%
Total
+20 bps
+70 bps
H1 2016
2015
2014
T2
AT1
CET1
H1 2016
19,4%
4,5%
1,5%
13,4%
CRDIV :
Fully loaded CET1 of 14,4% at H1 2016 : 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.
November 2016 CREDIT UPDATE
LA BANQUE POSTALE
LBP capital position
22
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
At year end 2015, above LBP Pillar II requirement
of 9.25% set by the ECB following 2015 SREP
exercise
And already well above the 9.3125% requirement
as of 1st January 2016* Basel 2 / 2.5 Basel 3 / CRR
11.4%* 10.1%**
13,4%
12,7% 12,1% 13,2%
11,5%
14,2% 14,7% 14,9%
2011 2012 2013 2013 2014 2015 H1 2016
AT1
Core Tier 1
12.7%
First capital
increase
of €860m
Capital increase of
€228m and AT1
issue of €800m
Capital increase
of €633m
… under conservative risk regulatory measure
Assessing Pillar 1 risk under standard approach
Managing with conservative regulatory hypothesis
LBP Tier 1 ratios historical data
LBP RWAs historical data (€m)
Latest informations about Pillar II
The Pillar II requirement resulting from 2016 SREP
exercise, should be split into :
A Pillar II requirement, below the regulatory buffers
A Pillar II guidance, above regulatory buffers,
without impact on MDA (Maximum Distributable Amount)
The results of the EBA’s 2016 stress tests will be an
input for the calibration of the Pillar II guidance used in
the 2016 SREP exercise
8 160 8 268 8 500 8 500 8 875 9 179 9 179
25 654 30 086
35 913
47 250 42 516 43 815 43 894
1 691 787
825
825 1 271 1 215 1 542
2011 2012 2013 2013 2014 2015 H1 2016
Market RWACredit RWAOperationnal RWA
13.2%
Basel 2 / 2.5 Basel 3 / CRR
November 2016 CREDIT UPDATE * 9.25% + 0.0625% of additional « O-SIB » buffer
€54615m €54208m €52662m
LA BANQUE POSTALE
MREL and TLAC considerations
23 November 2016 CREDIT UPDATE
Total Loss Absorbing Capacity considerations
Following public consultation, the TLAC requirement for
G-SIBs has been released by the FSB on November 9th
2015, with expected implementation by January 1st,
2019. The Commission intends to make a proposal to
introduce this standard into EU law in 2016
As an “O-SIB” and as of today, La Banque Postale is
not subject to TLAC such as defined by the FSB.
The European Commission proposed on May 23rd 2016
a Delegated Regulation specifying the criteria that
resolution authorities will need to consider when setting
MREL, an individual measure modulated with bank’s
business model, risk profile and funding model.
Building capital buffers
TLAC vs. MREL
In this context, La Banque Postale monitors
regulatory developments pertaining to resolution
and continues to build out buffer of loss absorbing
instruments as well as the Single Resolution Board
work which should determine an MREL
requirement (Minimum Requirement for own funds
and Eligible Liabilities)
La Banque Postale’s MREL requirement has not
been yet communicated by the SRB.
11,0% 12,7% 12,1% 11,4% 12,7% 13,2% 13,40%
1,8% 1,5% 1,5% 1,50% 2,8%
4,0% 4,50%
13,2%
17,0%
19,4%
2010 2011 2012 2013 2014 2015 S1 2016
18,7%
MREL TLAC
Covered Entities All EU credit institutions International G-SIBs
Focus Pillar II Pillar I + Pillar II
Eligible Liabilities Wider definition Limits to 2.5% pari
passu instruments to
excluded liabilities
Subordinated
instruments
Denominator Total liabilities and own
funds
RWAs / Leverage ratio
Minimum Ratio Bank specific level, no
legal floor
16% initially + Capital
Buffers / 6% Leverage
ratio
Date Starting Jan’16; phased-
in period
Jan’19
LA BANQUE POSTALE
Table of contents
24
Overview
Business model and results
Funding and Liquidity
Capital
Wrap-up
November 2016 CREDIT UPDATE
LA BANQUE POSTALE
La Banque Postale at a glance
25
H1 2016 Key financial figures
Strong capital and high liquidity at H1 2016
Consolidated results (in €m) June 2016 June 2015
Net banking income*
Excluding home savings provision
2,974
2,833
2,929
2,999
Operating income 502 479
Net Income, Group Share 360 370
Cost to income ratio 80.7% 81.5%
CET1 ratio: 13.4% **
Tier 1 ratio: 14.9%
Total Capital ratio: 19.4%
Estimated leverage ratio: 3.4% ***
Estimated LCR liquidity ratio: 224%
Company profile
Created in 2006 but a long track record in financial
services
Wholly-owned by La Poste, the French Postal
Service
A safe business model
Retail Banking: 94% of NBI (H1 2016)
Recurrent revenues
Conservative risk policy
Sound ratings:
A (stable outlook) by S&P
A- (stable outlook) by Fitch
Key facts H1 2016
94%
3% 3%
Retail BankingAsset ManagementInsurance
Customer deposits €170bn
Retail active Customers
Post offices (YE 2015)
NBI Split by Business
˜10.8m
˜9,300
November 2016 CREDIT UPDATE
*scope effect €22m (Ciloger and Federis) **Phased-in ratio *** Estimated ratio of 5% taking into account the delegated act published by the European Commission on Oct 2014, subject to ECB authorization
LA BANQUE POSTALE
Contact details
26 November 2016 CREDIT UPDATE
Stéphane Magnan [email protected]
Head of Financial Markets
Frédérique Delavaud [email protected]
Financial communication manager
Dominique Heckel [email protected]
Head of Long Term Funding
LA BANQUE POSTALE
La Banque Postale
27
La Banque Postale
115 rue de Sèvres
75275 Paris Cedex 06
www.labanquepostale.com
November 2016 CREDIT UPDATE