Financial results Q2 2024

Quarterly results

Quarterly revenues of EUR 6.7 billion, up by +6.3% vs. Q2 23, driven by an excellent quarter for Global Markets and Transaction Banking, increased margins at Ayvens and NII recovery underway in France despite facing headwinds from deposit beta and a slower loan origination in a muted environment

Positive jaws, tight grasp on operating expenses, up by +2.9% vs. Q2 23 and by +0.7%* at constant perimeter and exchange rates

Cost-to-income ratio at 68.4% in Q2 24, improving by 2.2 percentage points vs. Q2 23 and 6.5 percentage points vs Q1 24^[1]

Cost of risk at 26 basis points in Q2 24, stock of provisions on performing loans of EUR 3.2 billion

Group net income of EUR 1.1 billion, up +24% vs. Q2 23

Profitability (ROTE) at 7.4%

First half 2024 results

Half-year revenues of EUR 13.3 billion, up +2.9% vs. H1 23

Positive jaws, operating expenses slightly up by +0.6% vs. H1 23, down by -3.2%* at constant perimeter and exchange rates

Cost-to-income ratio at 71.6% in H1 24, improving by 1.7 percentage points vs. S1 23^[1]

Profitability (ROTE) at 5.8%

Solid capital and liquidity profile

CET1 ratio at 13.1%^[2] at end of Q2 24, around 285 basis points above the regulatory requirement, and expected to be above 13% at end-2024

Liquidity Coverage Ratio at 152% at end-Q2 24

Provision for distribution of EUR 0.91^[3] per share, at end-June 2024

Completion of the 2023 share buy-back programme of around EUR 280 million

Slawomir Krupa, the Group’s Chief Executive Officer, commented:

“In the second quarter, our commercial and financial performance is significantly improving, in line with our 2024 targets and our 2026 roadmap. Our revenues are driven by an excellent quarter in Global Banking and Investor Solutions, a sustained performance of our international retail banking activities, higher margins at Ayvens, while the net interest income is recovering in French retail despite being still impacted by an increasing share of interest-bearing deposits and a slower loan origination in a muted environment. Growth in revenues, combined with our disciplined costs and risks management, allows us to significantly improve our cost-to-income ratio and profitability. Our capital and liquidity ratios remain very strong. We continue to move forward in an orderly and efficient manner with the implementation of our strategic roadmap, as demonstrated in the sustained development of BoursoBank which is exceeding the 6.5 million clients threshold, and as shown by the launch of the first phase of our 1 billion euros investment dedicated to the energy transition. We also continue to simplify our business portfolio and are determined to capitalize on those positive dynamics to pursue the successful execution of our strategic plan in order to build a more profitable bank and create more value over the long term for all our stakeholders.”