2016 EU-wide Stress Test Summary
Core Information
- Bank Name: Groupe BPCE
- LEI Code: 9695005MSX1OYEMGDF46
- Country Code: FR
Summary of Results
Financial Performance (in mln EUR)
| Item |
Actual (31/12/2015) |
Baseline Scenario (31/12/2018) |
Adverse Scenario (31/12/2018) |
| Net Interest Income (3y Cumulative) |
- |
29,453.64 |
21,938.88 |
| Gains/Losses on Financial Assets (3y Cumulative) |
- |
3,390.73 |
187.98 |
| Impairment Reversal (3y Cumulative) |
- |
-4,880.20 |
-9,984.62 |
| Annual Profit/Loss |
- |
8,982.58 |
-4,803.11 |
Capital Ratios
| Ratio |
Actual (31/12/2015) |
Baseline Scenario (31/12/2018) |
Adverse Scenario (31/12/2018) |
| Coverage Ratio - Default Stock |
46.36% |
34.30% |
37.86% |
| Common Equity Tier 1 Capital |
50,965.94 |
58,919.50 |
41,304.78 |
| Common Equity Tier 1 Ratio |
13.0% |
14.5% |
9.7% |
| Fully Loaded CET1 Ratio |
12.8% |
14.4% |
9.5% |
| Tier 1 Capital |
52,215.87 |
59,389.90 |
41,775.18 |
| Leverage Ratio |
4.7% |
5.3% |
3.7% |
| Fully Loaded Leverage Ratio |
4.5% |
5.2% |
3.6% |
| Total Leverage Ratio Exposures |
1,121,064.00 |
1,121,064.00 |
1,121,064.00 |
Exposure and Risk Analysis
Exposure Values (in mln EUR)
| Category |
A-IRB Non-defaulted |
A-IRB Defaulted |
F-IRB Non-defaulted |
F-IRB Defaulted |
| Central banks and central governments |
33,883 |
55 |
63,609 |
0 |
| Institutions |
23,951 |
68 |
7,710 |
31 |
| Corporates |
97,210 |
4,428 |
47,977 |
2,059 |
| Corporates - Specialised Lending |
16,422 |
1,090 |
10 |
0 |
| Corporates - SME |
2,460 |
257 |
16,342 |
834 |
| Retail |
295,046 |
9,863 |
0 |
0 |
| Retail - Secured on real estate property |
183,950 |
3,713 |
0 |
0 |
| Retail - Secured on real estate property - SME |
32,647 |
1,583 |
0 |
0 |
| Retail - Secured on real estate property - non-SME |
151,302 |
2,132 |
0 |
0 |
| Retail - Qualifying Receiving |
8,041 |
213 |
0 |
0 |
| Retail - Other Retail |
103,053 |
5,938 |
0 |
0 |
| Retail - Other Retail - SME |
31,840 |
3,856 |
0 |
0 |
| Retail - Other Retail - non-SME |
71,215 |
2,080 |
0 |
0 |
| Equity |
0 |
0 |
13,228 |
25 |
| Securitisation |
0 |
0 |
19,092 |
0 |
| Other non-credit obligation assets |
0 |
0 |
19,092 |
0 |
| IRB TOTAL |
450,090 |
14,415 |
151,615 |
2,115 |
Risk Exposure Amounts (in mln EUR)
| Category |
A-IRB Non-defaulted |
A-IRB Defaulted |
F-IRB Non-defaulted |
F-IRB Defaulted |
| Central banks and central governments |
514 |
0 |
296 |
0 |
| Institutions |
5,183 |
0 |
2,477 |
0 |
| Corporates |
36,325 |
2,006 |
32,470 |
0 |
| Corporates - Specialised Lending |
4,424 |
0 |
9 |
0 |
| Corporates - SME |
1,313 |
189 |
13,330 |
0 |
| Retail |
53,827 |
4,411 |
0 |
0 |
| Retail - Secured on real estate property |
31,108 |
1,335 |
0 |
0 |
| Retail - Secured on real estate property - SME |
12,894 |
595 |
0 |
0 |
| Retail - Secured on real estate property - non-SME |
18,214 |
740 |
0 |
0 |
| Retail - Qualifying Receiving |
1,606 |
31 |
0 |
0 |
| Retail - Other Retail |
21,114 |
3,045 |
0 |
0 |
| Retail - Other Retail - SME |
10,661 |
2,090 |
0 |
0 |
| Retail - Other Retail - non-SME |
10,452 |
955 |
0 |
0 |
| Equity |
0 |
0 |
0 |
0 |
| Securitisation |
0 |
0 |
0 |
0 |
| Other non-credit obligation assets |
0 |
0 |
0 |
0 |
| IRB TOTAL |
95,849 |
6,418 |
88,711 |
0 |
Stock of Provisions (in mln EUR)
| Category |
A-IRB Non-defaulted |
A-IRB Defaulted |
F-IRB Non-defaulted |
F-IRB Defaulted |
| Central banks and central governments |
11 |
55 |
0 |
0 |
| Institutions |
5 |
60 |
9 |
16 |
| Corporates |
316 |
2,089 |
83 |
49.0% |
| Corporates - Specialised Lending |
60 |
287 |
0 |
26.3% |
| Corporates - SME |
9 |
171 |
65 |
32.0% |
| Retail |
764 |
4,782 |
0 |
0 |
| Retail - Secured on real estate property |
258 |
1,167 |
0 |
0 |
| Retail - Secured on real estate property - SME |
92 |
542 |
0 |
0 |
| Retail - Secured on real estate property - non-SME |
166 |
625 |
0 |
0 |
| Retail - Qualifying Receiving |
42 |
165 |
0 |
0 |
| Retail - Other Retail |
464 |
3,450 |
0 |
0 |
| Retail - Other Retail - SME |
222 |
2,374 |
0 |
0 |
| Retail - Other Retail - non-SME |
242 |
1,076 |
0 |
0 |
| Equity |
0 |
0 |
0 |
0 |
| Securitisation |
0 |
0 |
0 |
0 |
| Other non-credit obligation assets |
0 |
0 |
0 |
0 |
| IRB TOTAL |
1,097 |
6,986 |
92 |
49.0% |
Key Observations
- Financial Performance: The bank's net interest income and profits declined in the adverse scenario, indicating potential financial strain under stress conditions.
- Capital Adequacy: The CET1 ratio dropped from 13.0% to 9.5% in the adverse scenario, suggesting a significant reduction in capital strength.
- Risk Exposure: The total risk exposure increased in the adverse scenario, highlighting the potential for higher losses.
- Provisions for Defaults: The bank had a relatively high stock of provisions for defaulted assets, especially in the adverse scenario, indicating a proactive approach to provisioning.
- Coverage Ratio: The coverage ratio for default stock remained relatively stable across scenarios, suggesting a consistent ability to cover potential losses.
Country-Specific Data
France
- Exposure Values: High exposure in corporate and retail sectors.
- Risk Exposure Amounts: Slightly higher risk exposure in the adverse scenario.
- Stock of Provisions: Significant provisions for defaulted assets.
- Coverage Ratio: 49.0% in the adverse scenario.
United States
- Exposure Values: Low exposure in most categories, except for corporates.
- Risk Exposure Amounts: Minimal risk exposure.
- Stock of Provisions: Low provisions for defaulted assets.
- Coverage Ratio: 49.8% in the adverse scenario.
Italy
- Exposure Values: Moderate exposure in corporates and other retail segments.
- Risk Exposure Amounts: Low risk exposure overall.
- Stock of Provisions: Moderate provisions for defaulted assets.
- Coverage Ratio: 42.0% in the adverse scenario.
Germany
- Exposure Values: High exposure in corporates and other retail segments.
- Risk Exposure Amounts: Low risk exposure in most categories.
- Stock of Provisions: Low provisions for defaulted assets.
- Coverage Ratio: 48.9% in the adverse scenario.
Spain
- Exposure Values: High exposure in corporates and retail segments.
- Risk Exposure Amounts: Moderate risk exposure.
- Stock of Provisions: Moderate provisions for defaulted assets.
- Coverage Ratio: 42.0% in the adverse scenario.
Netherlands
- Exposure Values: Moderate exposure in corporates and other retail segments.
- Risk Exposure Amounts: Low risk exposure in most categories.
- Stock of Provisions: Low provisions for defaulted assets.
- Coverage Ratio: 48.9% in the adverse scenario.
Conclusion
The 2016 EU-wide Stress Test highlights Groupe BPCE's financial resilience under different scenarios. While the bank maintained a stable coverage ratio for default stock, its CET1 and leverage ratios declined in the adverse scenario, indicating potential capital constraints. The bank showed significant risk exposure in corporate and retail segments, with a notable increase in the adverse scenario. Provisions for defaulted assets were substantial, suggesting a proactive risk management approach. Overall, the bank's performance under stress conditions indicates a need for careful monitoring of capital adequacy and risk exposure.
