Driven by bancassurance, La Banque Postale sees its profit explode

All the lights are green for La Banque Postale. The public banking group reported on Thursday July 28 a net profit up 63.8% in the first half, to 462 million euros, driven by bancassurance in France, as well as investment banking activity. , and despite a charge related to CNP Assurances. Net banking income, equivalent to turnover for the sector, increased by 5.2% to nearly 4.2 billion euros. In detail, bancassurance in France recorded a net profit of 488 million euros (+46.5% over one year), bancassurance abroad of 75 million (+2.7%), heritage banking and asset management of 93 million (+138%) and corporate and investment banking, dedicated to businesses, local authorities and institutions, of 208 million (+20.2%).

The “non-division”, which includes “elements which are not directly attributable to each of the businesses”, such as for example a financial charge linked to the takeover of CNP Assurances, effective since June, led to a reduction in the profit of the various businesses for a total of 402 million euros. This financial burden should be spread over ten years and weigh between 350 and 400 million euros per year. It aims to amortize the exceptional accounting contribution of approximately 3.6 billion euros recorded in the first half of 2020.

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Records for the production of mortgage loans

On bancassurance in France, the group observed a “good contribution from the insurance division” while “the production of real estate loans reached records”, commented to journalists Philippe Heim, the chairman of the management board. Despite “clouds on the horizon”, with a very uncertain economic context, Philippe Heim wants to be rather confident for the future, judging that the rise in rates is rather a good thing for banks, after ten years of decline. However, the change in the economic environment is likely to be somewhat tricky with, initially, a compression of margins, the time to be able to weigh the rise in rates on customers.

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