BPCE reported stable net income of 925 million euros for Q3, driven by strong global sector performance, despite a decline in the Banque Populaire network. The group’s net banking income rose 8% to 5.9 billion euros. While the proximity banking division held steady, retail banking showed mixed results. BPCE plans to acquire Société Générale’s equipment financing division and aims for around 5 billion euros in net income by 2026. Concerns over regulatory differences with the U.S. were also noted.
BPCE Reports Stable Net Income Amid Mixed Banking Performance
On Wednesday, the BPCE banking group announced that its net income for the third quarter remained almost unchanged, thanks to robust performance in its global sectors, which helped counterbalance the weaker results from the Banque Populaire network. The group achieved a net profit of 925 million euros from July to September, reflecting a modest increase of 1%. Additionally, their net banking income (NBI) reached 5.9 billion euros, marking an impressive year-on-year growth of 8%. BPCE’s CEO, Nicolas Namias, highlighted this rebound in financial performance during a discussion with AFP.
Performance Breakdown and Future Prospects
The proximity banking and insurance division maintained a steady net income of 785 million euros year-on-year, with NBI rising by 4.3% to 3.87 billion euros. The retail banking networks exhibited contrasting outcomes: while the savings banks enjoyed an 11% rise in net profit, the Banque Populaire experienced a 19% decline, largely due to increased risk costs related to potential loan defaults. This situation was particularly evident in the real estate and retail sectors, especially textiles and furniture, as detailed by Mr. Namias. On a positive note, the retail banking sector saw an increase of over 130,000 customers.
The “Global financial services” division, which encompasses the global operations of Natixis bank, reported a net profit of 366 million euros, a 7% increase, with NBI approaching 2 billion euros (+12%). However, the group also faced a loss of 226 million euros from activities outside its core businesses, which was not specified. Additionally, BPCE announced the upcoming resignation of Natixis CEO Stéphanie Paix for health-related reasons, with her successor, Mohamed Kallala, set to take over on January 1, alongside Philippe Setbon, who leads asset management operations.
Moreover, BPCE is preparing to acquire the equipment financing activities from Société Générale, valued at 1.1 billion euros. This acquisition marks the largest in the group’s history and is expected to close in the first quarter of 2025, aligning with a strategic plan aimed at 2030. Despite the previous target of achieving at least 5 billion euros in net income by 2024 being unattainable, BPCE is now projecting a goal of “around” 5 billion euros in net income by 2026.
In a press conference, Mr. Namias addressed Donald Trump’s presidential victory in the U.S., indicating that the group’s operations across the Atlantic are poised to enter a “growth cycle.” BPCE has a significant presence in the United States through Natixis, particularly in large corporate dealings and asset management. He cautioned that Europe must remain vigilant regarding regulatory and supervisory disparities between the two regions, urging not to be “naive” about these differences.