BPCE reports record revenues and strengthens its strategy in residential real estate

The BPCE Group achieved a record second quarter, driven in particular by the growth of the Banques Populaires and Caisses d'Epargne. Between April and June 2026, its net banking income (NBI), the equivalent of revenue in the banking sector, reached €7,2 billion, representing a 13% year-on-year increase.

Net profit attributable to the group amounted to €1,3 billion, an increase of 38%. At the same time, operating expenses rose by 4% to €4,5 billion, allowing gross operating profit to increase by 33%.

Retail banks are driving growth in France

Retail banking in France, which includes the Banque Populaire and Caisse d'Epargne networks, recorded net banking income of 4,3 billion euros in the second quarter, up 13%.

Since the beginning of the year, the two networks have gained 415.000 new customers. Their outstanding loans have increased by 2% year-on-year, while their financial savings collection reached 24 billion euros at the end of June.

Meanwhile, the insurance and asset management activities generated revenues of €1,2 billion between April and June, up 9%. Their net profit increased by 18%, to €452 million.

The Corporate & Investment Banking division, which includes the financing and investment activities from Natixis, generated net banking income of €1,3 billion, up 7%. Its profit increased by 12%, to €468 million.

Novobanco's integration is causing a surge in revenue in Europe

The newly created Retail Banking division in Europe generated €466 million in revenue in the second quarter, representing a 121% increase. This growth is mainly due to the integration of Novobanco into BPCE's accounts since April 30th.

The French group acquired the Portuguese bank for 6,7 billion euros. Born from the rescue of Banco Espírito Santo in the mid-2010s, Novobanco was 75% owned by the American investment fund Lone Star Funds and 25% by the Portuguese State and the country's Bank Resolution Fund.

This new European hub also includes BPCE Equipment Solutions, specializing in financing capital goods, and Oney, positioned on payment and trade financing solutions.

"The integration of Novobanco on April 30 is obviously an important element of transformation which now creates this second domestic market in retail banking for the BPCE group," stressed Nicolas Namias, Chairman of the Management Board of BPCE.

Acquisition and integration costs will still weigh on the accounts in 2026. According to the executive, the full recurring contribution from Novobanco will not be visible until 2027.

A joint venture project with Nexity in new and renovated housing

BPCE is also continuing to develop its housing and real estate division. The group claims a market share of nearly 28% in housing finance in France.

In early July, BPCE and Nexity announced they had entered into exclusive negotiations to create a joint venture. This venture would be responsible for selecting, acquiring, and structuring a portfolio of new or renovated real estate programs in France, sourced from various developers.

The plan also stipulates that BPCE will consolidate the distribution operations carried out by iSelection with the Banques Populaires and Caisses d'Epargne. Subject to consultations with employee representatives, the new structure and the reorganization of distribution must become operational no later than January 1, 2027.

BPCE is considering acquiring Izimmo and Liberkeys

The group has also entered into exclusive discussions with Crédit Mutuel Arkéa with a view to acquiring Izimmo and Liberkeys. Izimmo specializes in the selection and marketing of real estate programs, while Liberkeys operates a digital real estate transaction business.

These operations would allow BPCE to extend its presence beyond real estate financing and investment, also covering the selection and distribution of housing.

“We are expanding our capabilities (…) beyond the financing and investment challenges in which we are already very active,” explained Nicolas Namias.

An increase in the cost of risk

The cost of risk, which corresponds to the amounts set aside to cover potential defaults on loans granted, reached €848 million in the second quarter in the published accounts. Excluding the exceptional adjustment related to the acquisition of Novobanco, it stands at around €753 million.

According to Nicolas Namias, this increase reflects a prudent policy in the face of future risks. The cost of risk related to outstanding loans that have already defaulted stood at €670 million, a stable level compared to the first quarter when considered as a percentage of outstanding loans.