Understanding our second quarter 2024 results

Letter to shareholders N°142

Dear shareholders,

In the second quarter, our commercial and financial performance is significantly improving, in line with our 2024 targets and our 2026 roadmap. 

Net banking income for the quarter came to EUR 6.7 billion, an increase of +6.3% in relation to the second quarter of 2023. Our revenues are driven by an excellent quarter in Global Banking and Investment 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.

At the same time, the Group maintained disciplined management of costs, leading to just a moderate increase in operating expenses, which for this quarter factor in a perimeter effect linked to the integration of the LeasePlan and Bernstein activities. Similarly, the cost of risk for the quarter reached 26 basis points, in line with our trajectory.

Group net income for Q2 2024 came to EUR 1.1 million, up +24% on Q2 2023. The return on tangible equity (ROTE) therefore was 7.4% for the quarter. With a capital ratio of 13.1%¹ and a short-term liquidity ratio of 152%, both well above the regulatory requirement, the Group once again shows a very solid balance sheet structure.

Additionally, the Group finalised its 2023 share buyback programme of around EUR 280 million during the quarter. 

Meanwhile, 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.

I take this opportunity to thank you for the trust you have placed in our Group and for your long-term commitment. 

Slawomir Krupa
Chief Executive Officer

_{1 Including IFRS 9 phasing, proforma including Q2 24 results}