French Retail Banking and International Retail Banking activities impacted in the first half of Q2 20; rebound from mid-May.
Resilient activities in Insurance, Private Banking and Transaction Banking
Good performance in Financing & Advisory and Fixed Income & Currencies; ongoing unfavourable market conditions for structured products in April and May and gradual recovery from mid-May
Non-cash exceptional items related to the review of the trajectory of Global Markets & Investor Services: impairment of goodwill for
Group net income of
SHARP DECLINE IN COSTS
Decline in operating expenses of -9.6% in Q2 20 and -5.8% in H1 20, reinforcing the objective of underlying operating expenses of
Objective to decrease costs in the medium term
HALF OF THE COST OF RISK IMPACTED BY IFRS9 EFFECTS AND COUNTERPARTY RATING DOWNGRADES
Net cost of risk of
2020 cost of risk expected to be at the low end of the 70 to 100 basis points range
SOLID CAPITAL AND LIQUIDITY POSITION
CET1 ratio of 12.5%( ) (12.6% pro-forma( )) at
81% of the financing programme achieved; LCR of 167%( )
CET1 ratio expected to be at the high-end of the 11.5% to 12% range at end-2020
FINALISATION OF THE STRATEGIC REVIEW OF STRUCTURED PRODUCTS
Maintain a global leadership position in Equity structured products, recognised by our clients, and reduce the associated risk profile; improving the profitability of Global Markets through a reduction in costs of around EUR
450 million by 2022-2023
Frederic Oudea, the Group's Chief Executive Officer, commented:
'During the first half of 2020,
The footnote * in this document corresponds to data adjusted for changes in Group structure and at constant exchange rates
(1) including 20 basis points for IFRS9 phasing
(2) pro-forma for the announced disposal of SG Finans (+10 basis points)
(3) quarterly average
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