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Mmo professionnel

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  • 1. Paris, February 26, 2009 GROUPE BANQUE POPULAIRE • GOOD RESILIENCE IN RETAIL BANKING WITH NET INCOME OF €1,101 MILLION AND REVENUES OF €5,841 MILLION • GROUP CENTRAL BODY BANQUE FÉDÉRALE DES BANQUES POPULAIRES REPORTS NET INCOME OF €298.6 MILLION • CONSOLIDATED NET INCOME OF €(468) MILLION AFTER INCLUDING NATIXIS’ RESULTS AND CIB GOODWILL IMPAIRMENT (€324 MILLION) • A VERY SOLID FINANCIAL STRUCTURE AT JANUARY 1, 2009: TIER ONE CAPITAL: €14.4 BILLION TIER ONE RATIO: 9.3% WITHOUT FLOOR EFFECT* CORE TIER ONE RATIO: 7.8 % On February 25, 2009, the Board of Directors, chaired by Philippe Dupont, approved the 2008 financial statements. Commenting on these results, Chairman Philippe Dupont stated: “Our results in retail banking reflect the strong resilience of the Banque Populaire regional banks in a context of economic recession. All the Banque Populaire banks, including the seven regional banks acquired in July contributed positively to these results, almost offsetting the negative effect from the adverse circumstances of Natixis’ investment banking business. Groupe Banque Populaire’s financial strength is one of the best in its sector”. Groupe Banque Populaire comprises 20 Banque Populaire banks, i.e. 18 Banque Populaire regional banks, Casden Banque Populaire and Crédit Coopératif, as well as the Crédit Maritime Mutuel and the mutual guarantee companies. It also includes a network of seven regional banks: Banque de Savoie, Banque Chaix, Banque Marze, Banque Dupuy, de Parseval, Banque Pelletier and Crédit Commercial du Sud Ouest, Société Marseillaise de Crédit. It also owns 36% of Natixis’ share capital and 95% of Foncia. The retail banking business consists of twenty Banque Populaire banks and the seven Regional Banks acquired on July 1, 2008. The financial information includes the contribution from the Regional Banks (RB) acquired by the Group on July 2, 2008 from HSBC France: Banque de Savoie (BP Alpes 51%/BFBP 49%), Banque Chaix (BP Provençale et Corse 51%/BFBP 49%), Banques Marze & Dupuy, de Parseval (BP Sud 51%/BFBP 49 %), Banques Pelletier and the Crédit Commercial du Sud-Ouest (BP Sud-Ouest 51%/BFBP 49%) and Société Marseillaise de Crédit (BFBP). Given their acquisition date, the RB contribution to the Group results only corresponds to the second half of the year. *Additional capital requirements in respect of floor levels 1/7
  • 2. Retail banking 4th largest French banking network continues sales and marketing drive In € mn 2008 2007 2006 (proforma) Revenues 5,841 5,839 5,578 Operating expenses (3,870) (3,659) (3,531) Gross operating income 1,970 2,181 2,047 Cost of risk (527) (388) 280 Operating income 1,443 1,793 1,767 Net income 1,101 1,340 1,199 The first half of 2008 was marked by more intense competition, an unfavourable interest rate environment and a challenging financial landscape. The second half of the year accentuated this tendency and the financial crisis was followed by an economic crisis that affected the behaviour of small business customers, corporate clients and personal customers, in the last few months of 2008. However, the retail banking business managed to maintain its commercial performance with revenues of €5,841 million which are stable compared to the high benchmark in 2007. Operating expenses stood at €3,870 million due to the integration of the seven regional banks during the second half of the year. Adjusted for changes in group structure, they were up 1.7%. Excluding non-recurring items, the increase was limited to 0.6%. In the light of the downturn in the economy, the cost of risk came to €527 million up 36% compared to 2007. Excluding the effect of the crisis, they stand at €465 million, representing 34 basis points versus 31 in 2007. Loans and assets managed have increased significantly in the retail banking business. Assets managed rose 9% to €182.4 billion. Outstanding loans to personal customers and corporate clients were up 13%. Net income for the retail banking business came to €1,101 million. Regional Banks: a successful integration The acquisition of the seven Regional Banks strengthened the retail banking business in the second half of the year. With revenues of €295 million their contribution to consolidated net income came to €95 million. Assets managed by the seven regional banks represent €12.1 billion and loans under management came to €5.8 billion. The arrival of the Regional Banks to the Banque Populaire network led to an increase of around 500,000 customers (370,000 personal customers and 90,000 small businesses and corporate clients) as well as the integration of 394 branches. Groupe Banque Populaire has furnished its national network, particularly thanks to the acquisition of the seven Regional Banks. However, the Group has also strengthened its presence notably in the South and North of France with the opening of 60 new branches. At the end of 2008, the retail banking business operated in 3,391 branches. 2/7
  • 3. Groupe Banque Populaire, first-rate banks support the funding of the economy Groupe Banque Populaire has actively taken part in supporting the economy thanks to its proactive commercial policy. The progression in assets managed and outstanding loans illustrates this drive. The Group has undertaken that it will maintain the progression in outstanding loans between 3% and 4%. The annual increase in outstanding loans is confirmed with a positive trend of +13%. Total outstanding loans for clients (personal customers and corporate clients) rose to €139.2 billion. This momentum was achieved thanks to the additional injection of €2.1 billion by the SFEF (Société de Financement de l’Économie Française), the French Financing Corporation. Groupe Banque Populaire’s total outstanding loans of €139.2 billion are broken down as follows: 47% represent loans to corporate clients, craftsmen and retailers and the other 53% account for home loans and consumer credit for personal customers. There have been no restrictive changes to our credit policy. Stronger performance in personal customer segment The customer acquisition drive continued at a constant pace with 144,000 new customers excluding the acquisition of 370,000 personal customers from the Regional Banks) and with a strong contribution of young people (44%) and civil servants (16%). At December 31, 2008, Groupe Banque Populaire had 7.4 million personal customers. The number of member- stakeholders advanced 3.2% to 3.45 million. Customer deposits climbed 13% with outstandings of €113.6 billion fuelled by a brisk level of inflows. Since the start of 2009, 593,000 Livret A savings accounts were opened at Groupe Banque Populaire. To the present day, €1.9 billion has been deposited in these accounts. The commercial performance of life insurance products intended for private banking has been solid with gross inflows of €1,169 million edging down 2% in a market that dropped sharply by 10.6% and with assets under management of €5.3 billion up 19% in a stable market. All life insurance market segments grew with gross inflows of €3,431 million and assets under management of €32.3 billion. Outstanding loans to personal customers rose 12% to €74.4 billion. The home loan book increased 13% in the Banque Populaire banks with outstandings of €66.6 billion. The consumer credit business reported outstandings of €7.1 billion. The new permanent credit facility Créodis was successfully deployed throughout the network with 86,000 contracts sold in 2008 representing a total amount of €125 million. In property and casualty insurance, revenues totalled €195 million in 2008, up 6% compared with 2007 whilst 143,000 new contracts were signed. In personal risk insurance, the Group saw brisk growth with a 10% rise in the number of contracts to 5.4 million. Revenues in this area were up 2% at €149 million. Finally, the progress made in distributing borrower insurance in the network was a success with revenues of €94 million (+45 %). 3/7
  • 4. In electronic banking, the credit card base grew strongly to 295,982 cards representing a 14.8% rise. The payment card base stands at 3,569,082, an increase of 2.8% The take-up rate is now 10 contracts per customer. In 2007, Banque Populaire bank customers held 9 contracts. Supporting close relations with its clientele served by 12,900 advisors, Groupe Banque Populaire was nominated “Customer Service 2009” for the banking sector. Synergies between Foncia and the retail banking network have been leveraged during 2008 with 6,000 new “Pass Location” consumer loans, and the signing of 30,000 multi-risk home insurance contracts. Foncia reported gross operating income of €40 million. A leader in small business and corporate markets Despite the deepening of the economic situation in 2008, Groupe Banque Populaire pursued its strategy of supporting entrepreneurs, SMEs and small businesses and consolidated its positions due to its solid integration in the economic fabric. On the whole, loans outstanding to small businesses and corporates grew by 15% to €64.7 billion with a strong contribution from investment loans (+17%) and this was even though a net slowdown in investment projects took place in the last quarter of 2008. In electronic banking, the number of retailer contracts came to 185,000 with 322 million transactions. Small businesses consolidated their level of electronic banking which led to an 11% increase in card transactions. Groupe Banque Populaire confirmed its number one position in providing business start-up loans and remains the unrivalled contact for SMEs with a penetration rate of 35% (source: Oséo). 2008 was an exceptional year in this area and more than 325,000 companies were created. As part of funding to small business and corporate clients, Groupe Banque Populaire has benefitted from the renewal of the agreement with the European Investment Fund (EIF) which facilitates the distribution of two loans: the “Express Socama” Investment loan counter guaranteed by the EIF and the “Socama transmission” loan with a limited personal guarantee. 9,200 loans were written representing €272 million. The range of products used to assist corporate clients have performed well such as funding receivables management (+11% in new contracts) and trade receivables management (+28% in insurance, +10% in business information). Groupe Banque Populaire, as number one bank in the franchise sector, with a penetration rate of 51% with franchisors and 27% with franchisees, is once again the first bank recommended by franchisors to their franchisees (source: French Franchise Federation/CSA 2008). In general personal insurance, the number of contracts rose 6% to 34,000 new contracts. 4/7
  • 5. Banque Fédérale des Banques Populaires, Central body of Groupe Banque Populaire Banque Fédérale des Banques Populaires (BFBP) plays a role that sets the Group Banque Populaire apart from other financial institutions. It does not head the Group as such, but rather operates at the heart of the organisation. Banque Fédérale des Banques Populaires is the head of the Banque Populaire network and steers the process of setting strategic objectives and directions. The BFBP owns a series of major equity interests on behalf of is parent companies, the Banque Populaire banks, including Natixis. It is therefore a streamlined and responsive holding company. Also a credit institution licensed to conduct banking transactions, Banque Fédérale des Banques Populaires manages a cash pool for the Banque Populaire banks and also meets their refinancing requirements. BFBP’s stand-alone net income stood at €298.6 million. 5/7
  • 6. Groupe Banque Populaire Mixed financial performance A solid financial strength € mn 2008 2007 • Revenues 7,296 7,445 • Gross operating income 968 1,537 • Net income (468) 1,055 01/01/2009 31/12/2007 • Total regulatory capital (€ bn) 17.7 20.2 • Tier One Ratio 9.3% 9.4% • Core Tier One Ratio 7.8% 8.9% Mixed financial performance In 2008, Groupe Banque Populaire’s scope increased with the consolidation as of July 2, of the seven regional banks acquired from HSBC. In addition, at the end of 2008, the Group considerably reduced its exposure to CIFG, the credit enhancement subsidiary, of which Groupe Banque Populaire and Groupe Caisse d’Epargne only hold around 5% each, following the successful commutation agreement. The 2008 consolidated financial statements were marked by the deepening of the crisis and the results of Natixis’ corporate and investment banking division, whereas in this context, the retail banking business demonstrated its resilience with net income of €1,101 million. Net income came to €7,296 million, edging down 2% compared to the high level of €7,445 million in 2007. Natixis’ 2008 results have had a strong negative impact on Groupe Banque Populaire’s results. Gross operating income stood at €968 million. The sharp rise in Natixis’ cost of risk led to operating income of €(236) million. Net income before goodwill amortisation of Natixis’ corporate and investment bank (CIB) stands at €(144) million. In the current context of the market downturn and on a prudent basis, Groupe Banque Populaire decided to set aside a provision for impairement in value of the entire goodwill arising from Natixis’ CIB in an amount of €324 million. In the light of this non-recurring provision, consolidated net income stood at €(468) million. 6/7
  • 7. A robust capital structure Groupe Banque Populaire’s financial strength is confirmed with a Tier One ratio of 9.3% at January 1, 2009 and will rise to 10% thanks to participation in the second part of the plan to support funding for the economy according to the same conditions set out in the first part of the plan. The Core Tier One ratio came to 7.8%. At January 1, 2009, total regulatory capital amounted to €17.7 billion, with Tier One capital standing at €14.4 billion. The Group was assigned an A+ rating by Standard & Poor’s and an Aa3 rating by Moody’s for long term debt. Groupe Banque Populaire contacts Annie de Paillette Director of Corporate Communications Tel.: +33 (0)1.40.39.68.27 annie.depaillette@bfbp.banquepopulaire.fr Press relations Christophe Gilbert Tel.: +33 (0)1.40.39.66.00 christophe.gilbert@bfbp.banquepopulaire.fr Investor Relations Pierre Jouffrey Tel: +33 (0)1.40.39. 68.40 pierre.jouffrey@bfbp.banquepopulaire.fr Terence de Cruz Tel.: +33 (0)1.40.39.64.30 terence.decruz@bfbp.banquepopulaire.fr The Groupe Banque Populaire results are available at www. banquepopulaire.fr Natixis’ results are available at: www.natixis.fr 7