2020 Results (EN)
BRED DISPLAYS RESILIENCE WITH HIGHER NBI DESPITE A YEAR MARKED BY THE HEALTH CRISIS
Growth in NBI in a deteriorated economic environment due to the health crisis
Adjusted for non-recurring items, BRED’s consolidated net banking income increased by 2.8%, totalling €1.265bn.
Accounting NBI was also recorded up 2.5% at 1.283bn.
These figures reflect the good resilience of BRED, thanks to the choice of its Banking without distance model, focusing both on digital and on value added advisory services.
In the economic context marked by the health crisis, Commercial Banking France posted good NBI growth of 3.6 %. Customer loan outstandings showed strong momentum (+ 14.4 % for Commercial Banking France). To support and economy and its customers, the BRED network mobilised its efforts to enable eligible customers to access the French State-guaranteed loan (PGE) scheme, with close to 12,600 loans granted and €2bn disbursed in 2020. 1,200 moratoriums were also granted across the different customer segments.
The International and Overseas Territories Banking division posted a 3.5 % increase in NBI at constant currencies. It benefited from strong growth in its activity in Cambodia and excellent performances in international trade financing in Geneva.
The Capital Markets activities, in which risk exposure had been reduced as of autumn 2019, achieved very good results, with NBI up + 22.1 %, despite the turbulent markets.
The Consolidated Investment Management division recorded NBI of €17.1m in 2020, which is lower than in 2019 due to the smaller contribution of the investment portfolios.
Operating expensesrose by 2.3 % on a reported basis (2.7.% excluding non-recurring items), reflecting the proactive investment decisions in technology, the modernisation of the network and international development.
Gross operating income thus increased by 2.8 %.
There was a further slight improvement in the cost-to-income ratio over the year. It decreased steadily between 2012 and 2020, from 67.2 % to 60.1 %.
The cost of risk doubled to €162m. The cost of risk on impaired loans decreased by 1.6%. The rise in the cost of risk therefore stems solely from the provisioning for performing loans to anticipate upcoming restructuring or payment defaults in certain sectors as a result of the sharp recession in 2020.
In this context, consolidated net income was very resilient, down 11.9% at €270.1m.
Very solid solvency and liquidity ratios
Shareholder’s equity stood at €5.0bn, up 1.9 %. The CET1 capital adequacy ratio stands at a good level of 17.33 % and the overall ratio at 17.57 %.
The LCR liquidity ratio was 160 % at 31 December 2020, for a regulatory minimum requirement of 100%.
BRED is a cooperative people’s bank, supported by its 200,000 members, €5.0bn in equity and 6,000 employees, 25 % of whom work outside mainland France and the French Overseas Departments. It operates in the Greater Paris region, Normandy and in the French Overseas Departments, as well as in South East Asia, the South Pacific, the Horn of Africa and Switzerland via its commercial banking subsidiaries.
As a community bank with strong ties in local areas, it has a network of 400 business sites in France. It maintains a long-term relationship with more than one million customers.
As part of the BPCE Group, BRED Banque Populaire operates in various activity sectors: retail banking, corporate banking for large - cap companies and institutional investors, wealth management, international banking, asset management, trading, insurance, and international trade financing.
In 2020, BRED reported consolidated NBI of €1.28bn, up + 2.5 %, and net income of €270m.
Contact presse
Anne Simonet
Responsable des relations médias de la BRED Banque Populaire
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