Update: La Banque Postale

CNP has fully propelled the group's net banking income and net income in recent years. We estimate that CNP contributed to 43% of the net banking income in 2024 (compared with 43% at year-end 2023) and 126% of the net profit disregarding corporate center (compared with 140%). The full consolidation of CNP helps LBP mitigate the impact of economic challenges on its NIM and earnings from its retail banking activities gives it time to restructure its business. The stable outlook on LBP mirrors that on LP. We continue to see LBP as a core subsidiary of LP, meaning any rating action on the parent would lead to a similar action on LBP. We expect LP will maintain a strong, lasting

...We expect La Banque Postale (LBP) to maintain an integral role within the La Poste group. LBP is fully integrated in the La Poste group, and we see the reputations of LBP and La Poste as closely linked. Among other factors, they share the same distribution network and some personnel, and have related brand names and similar customer recognition. We also think LBP benefits from La Poste's strong long-term commitment of financial support, as seen previously. We therefore see LBP as a core subsidiary of the La Poste group and align our rating on LBP with that on La Poste (A/Stable/A-1), resulting in a three-notch uplift above our assessment of La Poste's '###' group credit profile. We assess LBP's creditworthiness combined with CNP's because we incorporate LBP's banking strengths and weaknesses into our assessment of CNP's SACP. We analyze the intrinsic creditworthiness of LP's financial activities through CNP's SACP, in which we have incorporated LBP's strengths and weaknesses since October...

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