François Pérol Interview, CEO and president of the Management Board of Groupe

François Pérol, good morning

Good morning

You joined Groupe Caisse d’Epargne and Groupe Banque Populaire at the end of February. Today, when the merger is about to be consummated, what is your opinion of the past few months?

I’m proud of the work achieved by the people from both groups in the space of three months. We set ourselves the target of completing the merger in 90 days. The Boards of Banque Fédérale des Banques Populaires and Caisse Nationale des Caisses d’Epargne have approved the merger plans and the new Group already exists.

Indeed, the Group’s new identity will be presented to the public today. What messages would you like to deliver on this occasion?

The new Group will be called BPCE. We wanted a simple name in which both the Banques Populaires and the Caisses d’Epargne could recognize themselves, but we wanted a name in which neither network would be eclipsed because our customers are familiar with the Caisse d’Epargne and the Banque Populaire brands, and both networks are destined to continue expanding their activities.

How will these two brands be organized around the new central body?

Our idea is extremely simple: two networks, two names, two trademarks each with their particular strengths, no brand specialization, and one central body, BPCE, set up quite simply to serve its shareholders – the Caisses d’Epargne and the Banques Populaires – with a view to providing them with the best service in the most cost-effect manner possible.

Could you tell us when the merger will be finalized from a legal point of view? What are the next stages in the process?

A general meeting of the shareholders of the Banques Populaires and Caisses d’Epargne will be convened on July 31 to the effect that, legally, the new central institution, BPCE, will come into being on July 31. Monday, August 3, will be the first day in operation for the new central institution. But the important date was June 24, 2009, when the two Boards first approved the merger.

What assurances can you give about jobs?

I have made the trade unions a number of extremely clear commitments, emphasizing that the industrial relations maintained by our two Caisse d’Epargne and Banque Populaire Groups have traditionally been founded on a constructive dialogue with the employees’ representatives… and certainly not based on compulsory redundancy schemes.

I also reminded the unions that we are not merging the networks – the Banques Populaires will not be merging with the Caisses d’Epargne at a local level – but if projects are developed calling for adjustments in terms of employment, then we would proceed as we have always done in both groups, i.e. by pursuing a dialogue with the trade unions on the basis of voluntary departures and never on the basis of forced redundancies.

This is not the industrial relations tradition of either group and it will not be the industrial relations tradition of Groupe BPCE.

Can you already tell us about some of the key aspects of the new Group?

First of all, BPCE will be a more financially robust group, boasting capital of almost 37 billion euros. It is one of the most financially robust banking groups in Europe.

BPCE will also be two brands, two distribution networks that, together, will form the most powerful and most extensive network in France – after that of the French post office – that will pursue its core business activity: retail banking at a local level.

It will also provide an opportunity to ensure that the subsidiaries we now share in common more effectively serve the Caisses d’Epargne and the Banques Populaires, and more effectively serve their customers who are also the customers of both networks.

It is also a decentralized group based on 37 autonomous regional institutions: 17 Caisses d’Epargne and 20 Banques Populaires.

It will be a Group founded on the values of business creation, personal initiative, and the entrepreneurial spirit, a Group that will place efficiency at the very heart of its operations, not efficiency for its own sake but because efficiency is the guarantee of the long-term prosperity of BPCE and of all the Caisses d’Epargne and Banques Populaires within it.

Lastly, it will be an opportunity to take further steps – when the time is ripe and once we have put the group’s accounts on a sounder footing – in the international arena, notably for developments beyond the borders of France.

Thank you for answering my questions.

You're welcome