First Quarter 2016 Results

Sound Results benefiting from the Diversification of the Business Model

“In a more challenging environment at the beginning of the year than last year, the Group generated sound results in Q1 2016, illustrating the benefits of its diversified and highly integrated business model, which is reflected in the constantly increasing synergies between the businesses.

Despite the low interest rate environment, French Retail Banking continues to deliver a solid commercial and financial performance, while pursuing the far-reaching transformation of the operating and customer relationship model. International Retail Banking & Financial Services has doubled its contribution to Group net income and provided further evidence of its growth and profitability potential. In an unfavourable market environment, Global Banking & Investor Solutions has posted resilient results and reinforced measures to adjust its business model and increase operating efficiency.

With a sound balance sheet and robust solvency ratios, the Group is confident about its outlook for 2016, and will continue to invest in its growth drivers, while at the same time rigorously managing its costs and risks.”

Frédéric Oudéa – Chief Executive Officer

  • Net banking income of EUR 6.2 billion (vs. EUR 6.4 billion in Q1 15, -3.3%* excluding non-economic items): the good performance of all Retail Banking activities, the diversification of the business model and the development of synergies have helped offset the decline in market revenues in a challenging start to the year for the banking sector
  • Operating expenses under control: -0.5% (excluding refund of part of the Euribor fine and adjusted for the effects of the IFRIC 21 accounting standard)
  • Lower net cost of risk (-10.1%*) reflecting the quality of assets. Commercial cost of risk at 46 points (1) (-9 basis points vs. Q1 15)
  • Group net income of EUR 924 million in Q1 16 (EUR 868 in Q1 15, +6.5%) and EUR 829 million excluding non-economic items (EUR 833 million in Q1 15), marked by the substantial growth in all Retail Banking activities.
  • CET1 ratio up +25 basis points vs. end-2015, at 11.1% at the end of Q1 16 (10.9% at end-2015)
    Leverage ratio of 4.0% (stable vs. end-2015)
  • Stable EPS**: EUR 0.90 in Q1 16 (EUR 0.91 in Q15)(2)

* When adjusted for changes in Group structure and at constant exchange rates.
** Excluding non-economic items (revaluation of own financial liabilities and Debt Value Adjustment). Impact in net banking income of EUR +145m in Q1 16 and EUR +53m in Q1 15. Impact on Group net income of EUR +95m in Q1 16 and EUR +35m in Q1 15. See
methodology notes.

Items relating to financial data for 2015 have been restated in net banking income and for the capital allocated to the businesses so as to take account of the new capital allocation rule based on 11% of the businesses' RWA (risk-weighted assets).

(1) Excluding litigation issues, in basis points for assets at the beginning of the period, including operating leases. Annualised calculation
(2) Excluding non-economic items, gross EPS in Q1 15: EUR 0.96 and EUR 1.02 in Q1 16. See methodology note No. 3