Understanding the third quarter 2023 results

Letter to shareholders N°138

Dear shareholders,

The quarter was marked by a good commercial performance, limited increase in operating expenses and a low cost of risk. The Group’s net result was penalized by net interest income in France, as well as exceptional items. 

Over the quarter, net banking income decreased by 6.2% over the quarter compared with a high third quarter of 2022, mainly as a result of the peak of the impact of short-term hedges on the net interest income reached in Q3 23 in French retail. On the commercial side, the activity remained strong in most businesses. Global Banking and Investor Solutions notably posted stable revenues compared to a high level last year, and International Retail Banking maintained a solid performance.

Despite the inflationary backdrop, costs were also reined in to an increase of less than 1% at constant perimeter, while the cost of risk remained low at 21 basis points, which again demonstrates the quality of our assets.  

Over the quarter, Group net income totalled EUR 295 million, 905 million euros excluding exceptional non-cash items, having no impact on the capital ratio, or on shareholder distribution. 

With a Core Equity Tier 1 ratio of 13.3%1, up by 20 basis points – around 350 basis points above the regulatory requirement – and a robust liquidity profile that includes an increase in deposits outstanding, the Group has proven yet again the strength of its balance sheet. 

Last, we finalised the 2022 share buyback programme for a total of around EUR 440 million. 

Working in step with the management team, we are fully committed to the effective rollout of our strategic vision presented last September to structurally improve the Group’s performance. 

I wish to thank you for the trust you place in the Group and for your long-term commitment by our side. 

Slawomir Krupa
Chief Executive Officer


1 Phased-in ratio, pro-forma including Q3-23 results

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