The mutual group BPCE has just published its excellent results for the third quarter of 2021, confirming the general trend for banks, which are reaping the benefits of the economic recovery. However, caution is still the watchword.
Net income doubled in one year
In the third quarter of 2021, the BPCE group, which comprises the Caisse d'Epargne and Banque Populaire networks, posted a net profit of 1.3 billion euros, double last year's figure.
BPCE's net banking income rose by 14.4% in Q3 2021, reaching the sum of 6,293 million euros, and by 15.5% over the first 9 months of the year, for a total amount of 18,758 million euros.
Between the first 9 months of 2019 and the first 9 months of 2021, net banking income rose by 7. 5%: BPCE's results are therefore better than before the health crisis hit, proof that the Group seems to have fully recovered.
Cautious despite encouraging results
The Retail Banking and Insurance division and the Global Financial Services division, the latter comprising retail banking and asset and wealth management, both reported higher earnings.
The Retail Banking and Insurance division saw its revenues rise by 7.2% in Q3 2021, and by 7.5% over the first 9 months of the year. The Global Financial Services division saw revenues rise by 22.2% in Q3 2021, and by 27.6% over the first 9 months of the year, to €1,758 million and €5,242 million respectively.
" Sales momentum was strong this quarter in all our business lines, which were able to support the projects of all our customers against a backdrop of economic recovery. Close to the regions and their customers, the Banques Populaires and Caisses d'Epargne once again delivered very solid growth, particularly in insurance and consumer credit ", declared Laurent Mignon, Chairman of the Management Board of Groupe BPCE, in a press release.
However, Groupe BPCE wants to remain cautious, maintaining " an ever-cautious provisioning policy " in the face of the risk of non-payment. This strategy explains why the cost of risk, while down considerably in a year, with a 41.5% drop in the third quarter of 2021, remains higher for the first 9 months of the year than for the same period in 2019, with a 25.2% increase.