Upload
others
View
5
Download
0
Embed Size (px)
Citation preview
La Banque Postale Group
October 2018INVESTOR PRESENTATION
LA BANQUE POSTALE
Disclaimer
2October 2018INVESTOR PRESENTATION
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
Overview and business model
Key figures and results
Risk management
Funding and Liquidity
Capital
LBP Home Loan SFH
Appendices
INVESTOR PRESENTATION October 2018
LA BANQUE POSTALE
A solid and stable shareholding structure and a core subsidiary for Le Groupe La Poste
4
� La Banque Postale is wholly-owned by La Poste, the French Postal Service
� La Poste is structured around 5 business units, dedicated to fulfill 4 public service missions* assigned by the French State:
� Universal postal services
� Contribution to regional planning
� Press transport and delivery
� Banking accessibility
� La Banque Postale is considered as a core strategic subsidiary of La Poste:
� La Poste is legally bound to keep a majority stake in La Banque Postale (Law of regulation of postal activities, 2005)
� La Banque Postale is an essential contributor to La Poste income
� La Banque Postale is, by law, enabled to use La Poste’sstaff for its activities
73.7%
100%
100% *
26.3%
INVESTOR PRESENTATION
The backbone of La Banque Postale
* 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 said group fulfils public interest
functions in support of the policies pursued by the State and local authorities, and may engage in
competitive activities. (Article L. 518-2 of the French Monetary Financial Code)
October 2018
LA BANQUE POSTALE
La Poste: a major multi-business services group
5INVESTOR PRESENTATION October 2018
Le Groupe La Poste€12.246bnH1 2018 Revenue
€636mH1 2018 Operating profit
Services-Mail-Parcels GeoPost / DPDgroup La Banque Postale
% G
roup
reve
nue
Mar
ket
Mail and parcel market,mainly in France
European CEP 1 market Retail banking in France Internet-based services
46.6% 28.8% 23.9% 2.8%
La Poste NetworkServicing all business units through 17,126 retail outlets
La Poste NetworkServicing all business units through 17,126 retail outlets 2
A key employer in France253,219 employees3
Strong international presence34,484 employees3 abroad
1 CEP: Courrier-Express-Parcels2 JV co-owned by La Poste (51%) and SFR (49%), not included in Group revenue following application of IFRS11 as of 31/12/2017: 1.38 m customers3 Group employees in full time equivalent on average
LA BANQUE POSTALE
La Banque Postale (LBP): from La Poste’s Financial Services… into a fully fledged bank
6
1817 2000
Creation of Efiposte
(manages sight deposits
collected by La Poste)
Creation of the first postal service
mandate named ‘Reconnaissance’
31/12/2005
EfipostebecomesLa Banque
Postale
2007
Consumer Finance
2009 2011
Corporate lending
La BanquePostaleCrédit
Entreprises
La BanquePostale
Assurances IARD
A long history of La Poste’sfinancial services But still a short history as a fully-fledged bank
2012
Lending toFrench local authorities
La BanquePostale
CollectivitésLocales
La BanquePostale
Financement
P&C Insurance
SFH BPE
La BanquePostale
Home Loan SFH
2013 2014
Sofiap
2015
Partnership with AegonAM merger BPE/LBPGP
Since 2006, LBP has gradually acquired tools and bu ilt 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, LBP developed its
product range and became a fully-fledged retail bank
• With diversified lending activities, enhancing LBP’s role in financing the French economy
• Committed to serve all clients, all over the French territory
With strong social responsibility involvement: in 2018, La Banque Postale was designated the leading French
bank and second-best global bank in terms of CSR performance by the sustainable rating agency ISS-Oekom and
No. 1 worldwide by the agency Vigeo-Eiris
INVESTOR PRESENTATION
2016 2017
CrowdfundingCIB
LBP Prévoyance
Merger Federis/LBPAM
KissKissBankBank
October 2018
Asset Managementdevelopment
Wealth Managementdevelopment
2018
Online banking
Ma French Bank
LA BANQUE POSTALE
La Banque Postale: a business model based on core business development and successful partnerships
7
A very active partnership policy with major players in order to accelerate new businesses launches, re lying on safe and efficient operational process
� Retail banking � Private banking / discretionary portfolio
management� Consumer finance
� Public sector lending� Non-profit organizations & Corporate
banking
� Life insurance � 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
Partnership in Public sector lending
Partnership in Life insurance
20.15% owned 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
Partnerships in Asset Management
5% of
Retail Banking
70% owned by LBP
35% of
14% of
INVESTOR PRESENTATION
40% owned by LBP
60% of20%
75% 5%
100%
October 2018
LA BANQUE POSTALE
La Banque Postale (LBP): a core focus on retail banking and a leading position on the French banking system
8
Contribution to Net Result Before Tax H1 2018
� 10.4 million active retail customers
� 13.1% market share on ordinary savings (all savings accounts except CEL) and 22 % market share on the Livret A
� 5.5% market share on home loans outstandings*
Key figures of retail banking activity at H1 2018
Retail banking in France
NBI in H1 2018 **(€bn)
*Including BPE and Sofiap** Press releases reports, H1 2018*** Sofia Study, July 2018**** Retail banking France, Registration Document, YE 2017
LBP in the French banking environment
LCL 1.7
Crédit Agricole 6.6
Caisses d’Epargne 3.5
Banques Populaires 3.2
Société Générale 4.0
BNP Paribas 3.2
LBP 2.7
6,4
6,6
7,5
6,1LCL
Crédit Agricole 22,3
Caisses d’Epargne 13,9
Banques Populaires
Société Générale
BNP Paribas
LBP 16,1
Penetration rates on main current account
July 2018 (%)***
Number of branches
YE 2017 (m)****
8,4
1,9
2,9
3,2
4,0
7,0
1,7LCL
Caisses d’Epargne
Crédit Agricole
Banques Populaires
BNP Paribas
Société Générale
LBP
INVESTOR PRESENTATION October 2018
23%
6%
71%
Retail Banking
Asset Management
Insurance (inclunding share of profits from CNP)
LA BANQUE POSTALE
A solid and stable shareholding structure, reflected in strong credit ratings
9
Latest rating update 2018 2018
France AA / Stable (April 2018) AA / Stable (January 2018)
Caisse des Dépôts et Consignations AA / Stable (May 2017) AA / Stable (January 2018)
Le Groupe La Poste A / Stable (October 2017) A+ / Stable (December 2017)
Latest rating update September 2017 April 2018
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 2017)
La Banque Postale’s credit ratings
LT debt ratings of La Banque Postale’s stakeholders
INVESTOR PRESENTATION
Fitch affirms La Banque Postale at « A- », stable outlo ok (04/12/2018) : « LBP’s ratings reflect it established franchise in deposit collection and housing loans in France, fairly conservative risk appetite, good asset quality, modest profitability and soundcapitalisation, taking into account potential ordinary support from its parent La Poste (A+/Stable), France’s state-owned post office ».
S&P affirms La Banque Postale at « A », stable outlook (09/07/2017) : « S&P Global Rating’s stable outlook on La Banque Postale (LBP) mirrors the stable outlook ont its parent, La Poste, over the next two years. We expect LBP to remain a coresubsidiary of La Poste… in addition, we could upgrade LBP if we raise the long-terme rating on La Poste ».
October 2018
LA BANQUE POSTALE
Table of contents
10
Overview and business model
Key figures and results
Risk management
Funding and Liquidity
Capital
LBP Home Loan SFH
Appendices
INVESTOR PRESENTATION October 2018
LA BANQUE POSTALE
La Banque Postale at a glance
11
H1 2018 Key financial figures
Consolidated results* (in €m) H1 2018 H1 2017
Net banking income 2,926 2,808
Operating income 508 406
Net Income, Group Share 422 367
Cost to income ratio 81.4% 83.6%
Company profile
� Created in 2006 but a long track record in financial services
� Wholly-owned by La Poste, the French Postal Service
� A resilient business model � Retail Banking: 92% of NBI (H1 2018)� Recurrent revenues� Conservative risk policy
Key facts H1 2018
92%
3% 5%
Retail Banking Asset Management Insurance
Customer deposits
€182bn
Retail active Customers Post offices NBI Split by Business
˜10.4m ˜8,400
INVESTOR PRESENTATION October 2018
* 2018 and 2017 figures are not strictly comparable due to the application of IFRS9 from 01/01/2018
LA BANQUE POSTALE
A quick sum up on H1 2018 results
12INVESTOR PRESENTATION
Consolidated income statement (€ millions)
Main items in the income statementH1 2018 H1 2017 %
Net Banking Income
excluding the home savings provision, on a like-for -like basis
2,926 2,808 +4.2%
+ 5.6 %
Operating expenses (2,369) (2,331)+1.6 %
Gross operating income 558 477 +16.8%
Cost of risk* (49)
11 bps
(71)
16 bps
-31.0 %
Operating income 508 406 +25.2%
Equity method CNP Assurances and AEW Europe** 131 133 -1.5 %
Pre-tax income 639 538 +18.7%
Net income, Group share 422 367 +15.0%
Cost-income ratio 81.4% 83.6% -2.2 points
Capital and liquidity H1 2018
� CET1 fully loaded ratio: 12.4%
� Total Capital ratio: 17.1%
� Leverage ratio: 4.1%*
� LCR liquidity ratio: 152.6%
Business activities H1 2018 (vs 2017)
*With application of the transitional measures for taking into account savings funds centralised within
the Caisse des Dépôts (CDC), pursuant to the European Central Bank decision of 24 August 2016.
Excluding outstanding savings funds centralised at the CDC in accordance with the Delegated Act of 10
October 2014, the ratio is 5%.
� Home loans outstandings: +2.6%
� Personal loans outstandings: +2.5%
� Corporates and local public sector loans outstandings: +33.8%
� Ordinary savings outstandings: +1.5%
� Life insurance outstandings :+0.4%
� Cost of risk : 11 bps
October 2018
*annualised cost of risk after application of IFRS 9 as from 1 January 2018** Essentially CNP Assurances, and AEW for €1.9 million
LA BANQUE POSTALE
A growing loan portfolio with the development of new businesses
13
� New home loans production during H1 2018: €4.5bn
� New consumer loans production: €1.5bn
� Loans granted to corporates and local public sector: €11.3bn
A dynamic loan production …
Outstanding loans to corporates (in €bn)
Home loans outstandings* (in €bn) Consumer loans outstandings (in €bn)
53 54 56 58 59 59
2014
+2,6%
2017H1 2017 H1 201820162015
INVESTOR PRESENTATION
… and a growing loan portfolio
*Including BPE and Sofiap
Outstanding loans to local public sector (in €bn)
69%
6%
12%
13%
October 2018
2,9
5,36,4
7,8
10,1 10,4
2014
+32,8%
2017H1 201720162015 H1 2018
5.0
H1 2017
5.0
2016
4.9
2017
+2.5%
2015
4.5
2014
4.0
H1 2018
5.1
3,6 4,5
8,0 8,1
10,7 11,0
2014
+34,8%
2017H1 201720162015 H1 2018
LA BANQUE POSTALE 14
Dynamism of Insurance and Asset Management businesses
Asset management: AUM (in billions of euros)
� LBPAM: €222.5 billion in assets under management, up by 15 .1% over the period
� Tocqueville Finance: nearly €1.8billion* in assets under management, up by 8.6%
*Excluding LBPAM delegation
� An overall portfolio of policies nearly 4,611,000, up by 2.1%
� P&C insurance (IARD): portfolio +5.4%
� Health insurance: 192,000 policies (increased by 8.2%)
� Contingency insurance: about 2,723,000 individual policies (stable)
� Life insurance outstandings: €125.4bn (+0,4%), with an increase in the share of unit-linked insurance to 11.3% (up +0.9 po int)
Insurance: trend in policy portfolios (in thousands)
INVESTOR PRESENTATION October 2018
2017
218.5
+15.0%
H1 2018
224.3
H1 2017
195.0
2016
190.0
195
H1 2017
4,515
2,730
1,608 1,695
2,723Contingency
P&C
177
2016
4,453
2,751
1,539
163 192
+2.1%
4,611
H1 2018
Health
2017
4,567
2,711
1,661
LA BANQUE POSTALE
Group Net Banking Income dynamics
15
� Net Banking Income up +4.2%� Positive change in NBI (+5.6%) excluding home loan savings
provision. Restated for the delay in the payment of the compensation for the general interest mission in 2017 by €65 million, growth in underlying NBI works out at 3.2% in H1 2018 compared to H1 2017
� Strong rise in the insurance division (+20.2%) driven by the strong contribution of LBP Prévoyance
� The NBI of the Asset Management unit rose 4.9%
� Commissions accounting for a growing portion of revenue� revenue from commissions remains almost stable at
€1,172 million H1 2018� commissions and others accounting for 42.8% of revenue
� Despite low interest rates, the Net Interest Margin (restated for the home savings provision) increased by €149 million over the period
October 2018
NBI evolution during H1 2018 driven by:
� Low interest rates� Recurring high portion of commissions and fees� Positive effect of diversification activities
Net Banking Income NBI retail banking (excluding home loan savings pro vision)
90
25
+4.2%
H1 2018
2,926
Asset management
2,808
3
InsuranceRetail bankingH1 2017
1,154
5,100
2017
1,177
1,388
2,565
1,537
2016 H1 2018H1 2017
2,691
5,251
2,932
2,319
2,887
2,213
NIM
Commissions and others
LA BANQUE POSTALE
An ongoing effort to improve efficiency
16
2017 Operating expenses breakdown (%)
Focus on external services and other expenses (%)
INVESTOR PRESENTATION
Growth in LBP’s operating expenses was contained in H1 2018:
� + 1.6% at €2,369 million
� Reflects efforts to contain expenses in a high-growth environment
* Service sharing agreements signed with La Poste represent 78% of « external services and other expenses » and two thirds of total expenses
October 2018
Other operating costs
26%
Back office and IT
22%
Customer advisors/salesforce
30%
Counter and ATM transaction*
22%
488 522
4,619
+0.7%
Employee benefit expenses
External services and other expenses
Amortisation and provision
Taxes and duties
2017
181
3,856
60
2016
4,587
175
3,913
11
LA BANQUE POSTALE
Table of contents
17
Overview and business model
Key figures and results
Risk management
Funding and Liquidity
Capital
LBP Home Loan SFH
Appendices
INVESTOR PRESENTATION October 2018
LA BANQUE POSTALE
A cost of risk reflecting a conservative risk management
18
LBP Group cost of risk (€m)
NPL and coverage ratio – Retail banking in France
LBP Group cost of risk (bps)*
Source: H1 2018 results, slides of the presentation* Cost of risk on loans in bp, based on average outstanding at the start of the period
� Low risk appetite and stringent controls in place
� Total cost of risk maintained at a low level at €49 million. Compared to the retail bank’s outstanding loans, it is low at 11 bps
INVESTOR PRESENTATION October 2018
Source: 2017 annual reports, consolidated financial statements
Cost of risk – Retail banking in France (bps)
181 181
71
192
49
-31.0%
H1 20182017H1 201720162015
11
22
16
2323
-31%
H1 20182017H1 201720162015
LCL
1.9%
BPCE
3.3%
Société Générale
4.4%
BNPParibas
3.3%
LBP*
1.6%
36.5% 61.0%91.0% 82.0% 76.0%
11 12
20
24
12
1816
LCLCrédit Agricole
Caisse d’Epargne
Banque Populaire
Société Générale
BNPParibasLBP*
* Including Corporate Banking
*including total corporate banking
NPL :
Coverage :
LA BANQUE POSTALE
Strong asset quality
19
High quality of assets at H1 2018
€ 70bn centralised regulated savings
€ 88bn loans to customers
€ 32bn Amortised Costs and FVOCI portfolios
€ 35bn short term assets and central bank
€ 13bn others
INVESTOR PRESENTATION October 2018
Credit risk still accounting for most of total RWAs (€bn)
Basel 3 / CRR
Operational RWA
Credit RWA
Market RWA
H1 2018
67.9
9.3
56.7
1.9
2017
65.2
9.3
53.9
2.0
2016
59.6
9.3
48.2
2.1
2015
54.2
9.2
43.8
1.2
2014
52.7
8.9
42.5
1.3
High quality of retail lending portfolios
75.6% of the total portfolio is individual customers’ based
A progressive and controlled diversification of lending
businesses
A conservative financing approach, focusing on stringent
management
A conservative RWA calculation approach following standard
method
High quality securities portfolios (HTM and AFS YE 2017)
69%
84%
72%
Public Service
5%
Sovereign
72%
Bank12%
Corporate
12%
France
87%
Eurozone
9%
OutsideEurozone
4%
75%
Other
25%
AAA and AA
LA BANQUE POSTALE
Table of contents
20
Overview and business model
Key figures and results
Risk management
Funding and Liquidity
Capital
LBP Home Loan SFH
Appendices
INVESTOR PRESENTATION October 2018
LA BANQUE POSTALE
Balance sheet breakdown
21
Balance sheet at 30 June 2018: €237bn, +€6bn vs 01.01.2018
Large customers’ deposits base : €182bn
LBP “centralises” at CDC* all funds deposited on Livret A and
LDD regulated savings accounts and since H1 2016, only half of
LEP regulated savings accounts, with no interest rate or liquidity
risk (it is a pure pass-through): €70bn
Remaining part of the deposit base (not centralised to CDC)
amounting to €112bn:
is used to fund customer lending and mainly home loan
activity
is invested in a portfolio mostly classified in Amortised
Costs (dating back to before LBP was created and mainly
consisting in HQLA bonds) and a credit spread portfolio
Since January 2018, LBP is no longer allowed to overcentralise
its Livret A deposits, but will benefit from a 10-year phase-in
period to absorb the liquidity it will receive back
*CDC: Caisse des Dépôts
LBP balance sheet at 30 June 2018 (€bn)
Customer
deposits/
savings
€182bn
Assets out
of regulated
savings
centralised
at CDC
€168bn
INVESTOR PRESENTATION October 2018
13
35
11
21
21
67
70
Others
Short term assetsand central bank
FVOCI portfolio
Amortised costs portfolio
Other loansto customer
Home loans
Centralised regulated savings
Assets
237
14
9
16
17
107
75
Own funds and hybrids
Other Liabilities and Provisions
Repo
Debt securities
Customer deposits/savingsexcluding regulated savings
Regulated savings
Liabilities
237
LA BANQUE POSTALE
Diversifying funding sources to support lending growth
22
Diversified long term wholesale funding sources (at H1 2018)
INVESTOR PRESENTATION
In addition to a large customer deposit base, LBP has
diversified wholesale funding sources:
Short Term:
- Interbank funding: €20bn Neu CP programme
- Repo: Large valuable portfolio of high quality
securities
Medium to Long Term:
- Covered bond programme through LBP Home
Loan SFH
- EMTN and Neu MTN programme
- Agreement with SFIL/CAFFIL to refinance French
local authorities loan production
- Access to EIB (European Investment bank) long
term funding
- Long term Repo
In order to develop its lending activity, LBP is gradually
rebalancing its funding sources by increasing its long term
wholesale funding
38%
18%
44%
October 2018
38%
18%
44%
€10.75bn
7%
11%
28%54%
Repo LT
Senior
Tier 2
Covered Bonds
LA BANQUE POSTALE
A strong and stable liquidity position
23
Loan to Deposit ratio
Sound financing structure with a loan to deposit ratio
at 79.6% at 30 June 2018
Group’s LCR and HQLA liquidity buffer (€bn)
LCR: 152.6% at 30 June 2018
- A strong liquidity buffer with 95% of level 1
assets21.8
INVESTOR PRESENTATION October 2018
76%
HQLA
H1 2018
152.6%
2017
157.0%
Level 1
Level 2
H1 2018
24.3
23.0
1.3
67% 75% 75% 74% 81% 80%
H1 201820172016201520142013
Loan to Deposit ratio
LCR
LA BANQUE POSTALE
Table of contents
24
Overview and business model
Key figures and results
Risk management
Funding and Liquidity
Capital
LBP Home Loan SFH
Appendices
INVESTOR PRESENTATION October 2018
LA BANQUE POSTALE
LBP strong capital position (1/2)
25
Prudential ratios – building capital buffersCET1 (€m)
Leverage ratio
*Change in 2016 methodology by a decsision of the ECB of 24 August 2016, La Banque Postale is authorised to integrate gradually and linearly up to 2022 its CDC exposure.: **Estimated, taking into account the delegated act published by the EC on Oct 2014.
11.8125% Total Capital
13.6%
4.1%
1.2%
CRDIV :
� CET1 of 12.4% at the end of H1 2018. On firsttime application, the implementation of IFRS 9standard has a limited negative impact on equityof 140 million euros.
� SREP requirement applicable as of 01/01/2018 stands for 8.3125%
� Stable leverage ratio H1 2018
INVESTOR PRESENTATION October 2018
SREP requirements
8.3125% CET 1 (including P2R)
422
190
140
171
-0.9%
CET130.06.2018
8,443
OthersFTA IFRS9Dividend estimated
ProfitCET131.12.2017
8,522
18.2%19.4%
Tier 1
13.6%14.3%15.1%
CET1
12.4%13.1%13.7%
Total
17.1%
CET1
AT1
T2
H1 2018
17.1
12.4
1.2
3.5
H1 2018
2017
2016
H1 2018 (estimated)
5.0%
4.1%
2017
5.3%
4.5%
2016
5.2%4.6%
Including delegated act**
Without delegated act*
LA BANQUE POSTALE
LBP strong capital position (2/2)
26
Ability to generate capital to support future growt h
Capital management philosophy
� LBP and Group LP are committed to manageadequate solvency levels to support LBP’s strategyas evidenced by several capital actions
Maintaining a prudent approach on capital…
� Consistently above 10% CET1 since LBP creation
… under conservative solvency calculations
� Assessing Pillar 1 risk under standard approach
INVESTOR PRESENTATION October 2018
Basel 2 / 2.5 Basel 3 / CRR
11.4%
12,7% 13,2% 14,2% 15,1% 14,3%
2011 2013 2014 2016 2017
AT1
Core Tier 1
12.7%
First capital increaseof €860m
Capital increase of €228m and AT1 issue of €800m
Capital increaseof €633m
LBP Tier 1 ratios and La Poste Group support
13.7% 13.6%
LA BANQUE POSTALE
MREL considerations
27
Total Loss Absorbing Capacity considerations
� As an “O-SIB” and as of today, La Banque Postale is not subject to TLAC such as defined by the FSB
� La Banque Postale is subject to the MREL defined in the BRRD (Minimum Requirement for own funds and Eligible Liabilities)
� On November 23rd 2016 the European Commission proposed amendments on BRRD. This proposed reform package introduces TLAC in European law and amends MREL
� La Banque Postale intends to issue at least one benchmark per year (including SNP) + private placement
� La Banque Postale foresees limited amount of debt to issue in the future to reach MREL targets
INVESTOR PRESENTATION
Building capital buffers (phased-in ratios)
October 2018
H1 2018
17.1%
12.4%
1.2%
3.5%
2017
18.2%
13.1%
1.2%
3.9%
2016
19.4%
13.7%
1.4%
4.3%
2015
18.7%
13.2%
1.5%
4.0%
Tier 2
AT1
CET 1
LA BANQUE POSTALE
Table of contents
28October 2018INVESTOR PRESENTATION
Overview
Business model and results
Risk Management
Funding and Liquidity
Capital
LBP Home Loan SFH
Appendices
LA BANQUE POSTALE
78%
73%
67%
68%
64%
64%
52%
Spain
Italy
Eurozone*
Netherlands
UK
France
Germany
29October 2018INVESTOR PRESENTATION
The French housing market
� Low home ownership rate (64%)
� Prudent maturity at inception: 19 years (stable compared to2015)
� Conservative credit market underwriting practices with acautious loan approval policy based on borrowers’ solvabilityanalysis rather than on the value of assets financed. Stabilityof revenues and debt ratio are key issues :
� In 2016 in France, the affordability ratio is stable at30%.
A resilient French housing market and with favorabl e structural factors
Source : ACPR, enquête annuelle sur le financement de l’habitat July 2016 (last update February 2018)
� 97.9% of home loans production have a fixed rate to maturityat YE 2016
� This proportion has been increasing over the year(96.7% in 2015)
� Proportion of flexible loans is still decreasing (1.4%in 2015, 1.2% in 2016).
� Home loans secured by a guarantee provided either by alicensed credit institution or a licensed insurance companyrepresent the majority of the French home loan market andincreased over the year from 56% to 58.3%.
Source : EMF, Hypostat 2017 (2016 figures, except * : 2015)
Mortgage Interest Rate %
European home ownership % (2016)
House-price index (base 100=2007)Source : European Mortgage Federation, Q1 2018 quarterly review
Source : European Mortgage Federation, Q1 2018 quarterly review
LA BANQUE POSTALE 30October 2018INVESTOR PRESENTATION
The French housing market: encouraging trends and long-term favorable potential
� The new home market: building permits and housing starts up+8% and +12.5% at the end of February 2018 on 12 monthcumulative basis
� Home loans at the end of November 2017 on 12 month cumulativebasis (excluding internal renegotiations): continued dynamismwithin a very low-rate context
� Share of renegotiations in production decreased to 11% afterthe peak reached in February 2017 (39%)
France: home loans production (in €bn excluding internal renegociations)
(source Ministère de la Cohésion des territoires, LBP)
France: Building permits and housing starts
source : ACPR, calculs LBP
124
109
141
122
193
180
221
184
112106
114104
125
140
171180
0
20
40
60
80
100
120
140
160
180
200
220
240
20132012 2014 201720162015 2018 (Jun)
2011
Total production
Production out of renegociations
Feb 18: 497,700
Feb 18: 427,700
Building permits Housing starts
LA BANQUE POSTALE 31October 2018INVESTOR PRESENTATION
La Banque Postale Home Loan strategy
La Banque Postale home loan business
� Low risk profile customers * :- Owner occupied home (83%)- Maturity at inception (19.1 years)- Fixed rate loans (99.8%)- 54.3% of loans are guaranteed by
Credit Logement at December 2017
Loan purpose (2017 production*)
Split by guarantee (2017 production*)
Others
3%
Collateral security
(mortgage, LPRF*)37%
Crédit Logement55%
5%
Guaranteed by other institutions
22%
Repurchase 2%
Other
58%Existing home
New home18%
Doubtful home loans (%)
Source :Banque de France, ACPR, LBP, Crédit Logement* LBP out of BPE and Sofiap
*lender’s priority right to funds
0,0
0,2
0,4
0,6
0,8
1,0
1,2
1,4
1,6
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
French market
LBP *
Crédit Logement
* Source LBP
LA BANQUE POSTALE 32October 2018INVESTOR PRESENTATION
LBP Home Loan SFH: legal framework
� La Banque Postale Home Loan SFH is a French credit institution, 100% owned byLBP, licensed by the French financial regulator (Autorité de Contrôle Prudentiel etde Résolution – ACPR).
� Minimum contractual over-collateralization (OC) of 8.1% over the 5% legallyrequired, using the same weightings
� Under CRD IV / CRR (article 129) and LCR delegated act, AA- or better ratedcovered bonds with minimum size of €500m are eligible to level 1B for LCR andbenefit from a 10% RW treatment
� Segregation of cover pool assets and legal preferential claim for covered bondsinvestors
� Absolute seniority of payments over all creditors , no early redemption oracceleration
� Regulated covered bonds are exempted from bail-in (BRRD)
A strong legal framework and advantageous treatment for Inv estors
Investor informations : a dedicated website
https://www.labanquepostale.com/en/investors/debt.hlsfh.html#
ECBC Label to ensure fulltransparency on the cover pool
LA BANQUE POSTALE 33October 2018INVESTOR PRESENTATION
LBP Home Loan SFH: legal framework
Namens-schuldverschreibungenDocumentation
� In June 2014, La Banque Postale has establisheda Programme for the issuance of Germanregistered covered bonds(Namensschuldverschreibungen or “N-bonds”).
� Investors in the N-bonds benefit from a strongprotection with absolute seniority over the SFH'sassets (including the coverpool), by law. They areranked pari passu with the other SFH'sbondholders.
� The N-bonds are registered covered bondsgoverned by German law.
Structure overview
La Banque Postale(Borrower)
Cover Pool(French Home Loans)
Investors
La Banque Postale Home Loan SFH(Covered Bonds Issuer)
Collateralized loans Public Issuances
Private Issuances
Covered Bonds Proceeds
Covered Bonds (OH)
Collateral Security
Collateralized Loans
Principal and Interest
LA BANQUE POSTALE 34October 2018INVESTOR PRESENTATION
LBP Home loan SFH: a resilient and granular cover pool
Programme Terms
Cover Pool (ECBC template : reporting date 08/27/2018 – cut-off date 07/31/2018)
Programme size € 10bn
Rating AAA by S&P
Currency €
Listing Euronext Paris
Governing law French Law, Ability to issue German law governed Namens-schuldverschreibungen
Amount issued €5,801 bn (13/09/2018)
Maturity type Hard/Soft bullet
Registrar and paying agent for NSV LBBW
Total outstandings € 9,300bn
Number of loans 151,303
Average loan balance € 61,466
Seasoning 56,91 months
WA LTV 65,9%
Indexed WA LTV 64,7%
Owner occupancy 86,15%
Interest rates 100% fixed rates
LA BANQUE POSTALE 35October 2018INVESTOR PRESENTATION
LBP Home loan SFH: a resilient and granular cover pool
Other non working
3%
Retired
2%
Self employed
5%
Civil Servants
24%
Employees
67%
Loan purpose (2018 *)
Buy to let
12%Second home
2%
Owner occupied86%
Workers by category
1st lien mortgages
28%
Guarantees (CreLog)
72%
Mortgages and guarantees of the cover pool
Others regions
48%
Rhones Alpes
11% Provence-Alpes-Côte d’Azur
10%
Aquitaine6%
Ile-de-France (Paris included)
25%
Geographical distribution
*sources : LBP HL SFH, ECBC Template, reporting date 07/31/2018
LA BANQUE POSTALE
Covered bonds: funding programme
Issuance
Funding plans
� 2018: almost €1bn has already been issued, including €0.75bn of public issuance
� Funding plan for the remaining part of 2018 should be a mix of private placements and one more public issuance, depending on new homeloan production
As of 07th of
may 2018Total Benchmark PP
Issuance 5,776 mn€ 4,500 mn€ 1,276 mn€
October 2018INVESTOR PRESENTATION 36
-20
-18
-16
-14
-12
-10
-8
-6
-4
-2
02/1/17 2/3/17 2/5/17 2/7/17 2/9/17 2/11/17 2/1/18 2/3/18 2/5/18
Mid z spread LBP 2024
LBPSFH 2.375 01/15/2024 Corp
� Regular activity in public issuance since the launch ofthe SFH in 2013, with 7 outstanding bonds
� ECBC label, with monthly reporting on asset qualityavailable on our website
LA BANQUE POSTALE 37October 2018INVESTOR PRESENTATION
Crédit Logement / Mutual Guarantee Fund (MGF)
Crédit Logement share capital, YE 2017
“Guaranteed agreement reached more than €105 billion in
2017, i.e. for the 3rd consecutive year an overrun of €100 billion
in guaranteed loans.”
Crédit Logement 2017 Annual report :
� Crédit Logement is the market leader on the French residential propertymarket, guaranteeing 1 out of 3 property loans in 2017
� It guarantees residential property loans for individuals, in the form of a jointand several guarantee which aims at covering the bank against defaultborrowers .
� More than 500 000 operations in 2017 have benefited from a CréditLogement guarantee, thus allowing them to finance their property purchaseswithout mortgages
� Crédit Logement YE 2017:
� Outstanding guarantee €325.7 billion and 3 292 165 loans
� Long Term rating (Aa3/stable by Moody’s and AA/low by DBRS)
� Ultimate support by the French banking system
� Mutual Guarantee Fund (MGF) :
� The Crédit Logement financial guarantee is based on the principleof pooling risk, with each borrower contributing to a MutualGuarantee Fund (MGF) :
� The MGF allows repaying the bank in case the borrowerfails
� MGF: €5.32 billion at YE 2017
3%
HSBC France
0%
Others
Individuals
0%
17%
BNP Paribas
16% Crédit Agricole
16%
BPCE
LCL
CM-CIC
7%
SF2 - Groupe La Banque Postale
Crédit Foncier
9%
17%
9%
Société Générale / Crédit du Nord
6%
LA BANQUE POSTALE
Table of contents
38
Overview and business model
Key figures and results
Risk management
Funding and Liquidity
Capital
LBP Home Loan SFH
Appendices
INVESTOR PRESENTATION October 2018
LA BANQUE POSTALE
La Poste Network: a multi-business network with a banking activity
39INVESTOR PRESENTATION
� 17,126 retail outlets in France o.w. 49,3% post offices (8,414) and 50.7% partnerships
� 409 millions of visits
� 96.7% of the French population lives less than 5 km away from a retail outlet
� 83% of the French population stated they had visited their post office at least once to carry out postal or banking transactions in 2016**
� 51,200 employees, with more than 80% working in post offices
An exceptional granularity*
17% of Mail revenue
85% of La Poste Mobile sales
21% of Parcels revenue
100% of net collection for individuals
75% of property loans1
67% of consumer loans
of Chronopost revenue6%
Commercial activity of La Poste Network*
• Le Groupe La Poste 2017 Registration Document** Le Groupe La Poste 2016 Registration Document1) Excluding social housing loans
� 1,122 million transactions completed at its counters and automated postal
machines, i.e :
� 677 million bank transactions and 5.7 million banking advice appointments
completed by banking advisers located in the Network, i.e:
October 2018
LA BANQUE POSTALE
Alternative Performance Measures
40INVESTOR PRESENTATION
Alternative Performance Measures Definition and method of calculationNBI excluding the effect of the home savings provision NBI restated for provisions or reversal of provisions on liabilities related to home savings
accounts (PEL and CEL)
Operating expenses Sum of operating expenses and net depreciation and amortisation and impairment of property, plant and equipment and intangible assets
Cost-income ratio Operating expenses divided by NBI corrected for doubtful interest
Cost of risk in basis points Average commercial banking credit risk costs for the quarter divided by outstandings at the beginning of each quarter
Article 223-1 of the AMF regulations
October 2018
LA BANQUE POSTALE
Contact details
41
Stéphane Magnan [email protected]
Head of Financial Markets and Structured Finance
Dominique Heckel [email protected]
Head of Long Term Funding
Estelle Maturell Andino [email protected]
Head of Financial Communication
INVESTOR PRESENTATION October 2018
LA BANQUE POSTALE
La Banque Postale
La Banque Postale
115 rue de Sèvres
75275 Paris Cedex 06
www.labanquepostale.com
October 2018INVESTOR PRESENTATION 42