• IN 2022: INCREASE IN NET BANKING INCOME OF +12.4% TO €1,636.8m

• GROWTH IN NBI IN COMMERCIAL BANKING FRANCE (+8.3%) IN THE TRADING DESK (+25.8%) AND THE INTERNATIONAL DIVISION (+32.9% at constant exchange rates)

• EXCELLENT COST/INCOME RATIO OF 54.1%

• GROWTH IN NET INCOME OF +23% TO €507.4m

• STRONG GROWTH IN SHAREHOLDERS’ EQUITY OF +7.3% TO €6.2bn

• VERY GOOD CET1 CAPITAL ADEQUACY RATIO OF 15.7%

“We end 2022 with results that have been rising consistently for 10 years. This impressive upward trend demonstrates the relevance of our “banking without distance” strategy, which we have constantly strengthened by investing in digital, of course, but also in people, the only lasting way of ensuring the relationship of trust, and providing the high quality attentiveness and expertise expected by our customers, whether they are individuals or companies of any size. We are proud that this philosophy of action, driven by our cooperative values, was recognised by several awards in 2022. BRED Group has all the strengths required to confidently pursue its development in support of the economy in its regions, both in France and abroad,” says Olivier Klein, Chief Executive Officer of BRED Group.

HISTORIC RESULTS IN 2022 WITH VERY SUSTAINED GROWTH IN NBI FOR THE PAST 10 YEARS

BRED Group posted a sharp increase in net banking income (NBI) (+12.4%) to €1,636.8m.

The very strong growth in NBI was driven by all business lines.

Commercial Banking France posted NBI up by 8.3%

Commercial Banking in France (including ALM) posted an increase in its NBI of +8.3% and a continuous cumulative increase of +65% from 2012 to 2022, significantly outperforming the market. These performances are the result of the “banking without distance” strategy, with its “100% Advisory” branch model, based on a close and high added-value overall relationship with each customer segment and the relevant and complementary development of digital technology. This income growth results from the increase in our interest margin (+5%) and our commissions (+9%), in line with the development of our business across all customer segments. The increase in customer lending (+15%) remained very dynamic over the whole of 2022.

BRED branches, both in mainland France and overseas, saw a sharp increase in outstanding loans (+11%) as well as the number of active customers (+2.8%).

On the corporate market, the business centres responded to support companies in their development. As a result, €1,329m was allocated to corporate financing in the Greater Paris region, €282m in Normandy and €678m in our overseas establishments.

The Corporate Banking division continued its very dynamic growth, with an increase in customer lending (+11%) as well as deposits held (+17%). It has become one of the leading banks in the credit arrangement market, while retaining a very significant position in large flows.

The Private Banking division : BRED Banque Privée, which relies on its wealth management centres and wealth management activities, saw its financial savings deposits increase significantly in 2022, while the number of its clients grew by +15% year-on-year. In 2022, BRED Banque Privée was also named “Best Affiliated Private Bank” in France. It draws on synergies with the business centres, as well as on the business expertise of BRED Group subsidiaries such as Prepar (life insurance), Promepar (asset management), Adaxtra (private equity) and Ingepar.

Very good growth in NBI for the International Banking and COM division

International Banking and COM (French overseas collectivities) posted a +32.9% increase in NBI at constant exchange rates and +40% at current exchange rates. It benefited from an excellent performance, with strong growth in its commercial banking activities in Southeast Asia, the South Pacific and the Horn of Africa. Its Geneva subsidiary, BIC BRED Suisse, which specialises in international trade financing, is also posted very good results and is pursued its growth by opening a branch in Dubai.

The Capital Markets division continued to grow

The trading desk once again capitalised on its expertise to achieve record income in 2022. It contributed 10% to BRED Group’s NBI and was also recognised last December as the best bank for placing the short-term debt of major European issuers with global investors via three CMDportal Money Markets Awards.

Another remarkable year for the Consolidated Investment Management division

Following a remarkable year in 2021, the Consolidated Investment Management division was able to renew a very high level of NBI (€122.5m).

OPERATING EXPENSES SUPPORTING GROWTH

Operating expenses increased by +9.4%, restated for the increase in variable compensation, bolstering the steady growth in results. This reflects the continuous investment effort in information systems and operational efficiency, as well as recruitment and staff training. The strong development of international subsidiaries also contributes to the increase in the Group’s operating expenses. Total operating expenses increased by +10.4%.

A SHARP INCREASE IN GROSS OPERATING PROFIT AND AN EXCELLENT COST/INCOME RATIO

Gross operating profit, up +14.9%, benefited from the significant increase in NBI.

Down by more than 13.1 points since 2012, the cost/income ratio stood at 54.1%, a remarkable level in the French banking sector.

DECLINE IN COST OF RISK

The overall cost of risk was €108.3m, down 12.8%, despite a slight increase in defaults at the end of the year. The cost of proven risk on loans remains below its historical level.

RECORD BRED GROUP SHARE OF NET PROFIT

BRED Group share of net profit reached a new record at €507.4m – up +23.0%. This has increased by a factor of 2.8 in the past 10 years.

A VERY SOLID CAPITAL ADEQUACY AND LIQUIDITY RATIO

Book value of capital amounts totalled €6.2bn, up 7.3% year on year thanks to an excellent net income figure and to a capital increase of €186m. BRED Group’s shareholders’ equity has therefore increased by a factor of 2.7 in 10 years.

The CET1 capital adequacy ratio stands at a good level of 15.73% and the overall ratio at 15.82%.

The LCR liquidity ratio was 119% at 31 December 2022, for a regulatory minimum requirement of 100%. BRED’s NSFR (Net Stable Funding Ratio) stood at 105% at 31 December 2022 for a regulatory minimum requirement of 100%.