ACPR analysis: the large French banking groups, their situation at the end of 2021

As part of a study on the situation of banks in 2021, the Prudential Supervisory and Resolution Authority (ACPR) analyzed the results of the six main French banking groups: BNP Paribas, Société Générale, Crédit Agricole Group, BPCE Group, Crédit Mutuel Group and La Banque Postale. While they have benefited from the improvement of the economic context, the ACPR study also highlights areas of vigilance and challenges for the future.

An improvement in the activities of French banks

In 2021, French banking groups benefited from the positive evolution of the economic context. The ACPR notes in fact many positive elements in the evolution of the activities of French banks.

An increase in their budgets

At the end of 2021, the prudential balance (in terms of banking activity) of the six major banks amounts to 8,178.2 billion euros, an increase of 4% compared to 2020, and their accounting balance ( covering all the activities of a group: banking, insurance, asset management, etc.) have increased by 4.5%.

Record the results

The net banking income (NBI) of the major French banks grew by 9.9% compared to 2020, to reach 162.4 billion euros. All banking activities saw their revenues increase between 2020 and 2021, with significant increases for Retail Banking in France (+4.5 billion euros) and Corporate and Investment Banking (+4 billion euros) ). The current operating income of French banks increased by 74%.

An enhanced prudential situation

The six major French banking groups improved their financial soundness with a solvency ratio of equity tier 1 (CET1) which increased slightly in 2021 (15.54%) compared to 2020 (15.47%) and 2019 ( 14.8%), and equity that continued to grow, reaching 483 billion euros at the end of 2021, compared to 464 billion euros in 2020.

Challenges for French banking groups

While the six main French banks saw their situation improve in 2021, some indicators should be given particular attention according to the ACPR.

The credits

In 2021, non-performing loans (NPLs) will continue to fall (105.7 billion euros at the end of 2021 compared to 114.3 billion euros at the end of 2020). However, this decline masks disparities. Some sectors of activity have been and / or will be more affected by the health crisis and the Ukrainian crisis, such as catering and accommodation where the volume of NPLs has increased by 60% since the end of 2019. and difficulties of borrowers increased by more than 28%.

The international context

The conflict between Ukraine and Russia, as well as the restrictions put in place in China after the resurgence of the pandemic have and will have economic consequences in France and on the activities of French banks: increase in the price of energy and raw materials, supply. financial market difficulties and volatility.

cyber risk

The digitization of banking activities has increased, especially with the pandemic. This is accompanied by an increase in the risk of cyber attacks and requires banks to be more vigilant and adapt their IT infrastructures.

Climate change

The ACPR points out that the risks associated with climate change must be integrated into the management and strategies of banks.

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