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Results

Consolidated results of Groupe Crédit Foncier

The Group share of net income in 2015 was €48m.

Crédit Foncier’s main consolidated financial indicators at December 31, 2015 were as follows:

  • Loan production: €10.4bn
  • Outstandings (end of year): €100,3bn
  • Net banking income: €857m
  • Group share of net income: €48m
  • Total assets: €134bn
  • Consolidated equity (group share): €3.6bn
  • Consolidated European capital adequacy ratio: 12%, of which Common Equity Tier One (CET1): 9.6%

(in €m) 2015 2014 Change
Net banking income 857 665 192
Operating expenses -528 -547 19
Gross operating income 329 118 211
Cost of risk -237 -110 -127
Income from companies consolidated by the equity method 1 2 -1
Income from other non-current assets 2 1 1
Income before tax 95 11 84
Income tax -45 7 -52
Minority interests -2 -3 1
GROUP SHARE OF NET INCOME 48 15 33
C/I ratio * 61.6% 82.3% -20.7 pts

* Cost/Income ratio (operating expenses/net banking income).

Net banking income amounted to €857m, up 29% on 2014, mainly due to the positive effects of IFRS valuations over the year, the non-inclusion of the cost of carry of the RMBS portfolio that Crédit Foncier transferred in September 2014. The impact of these elements on NBI is the following:

  2015 2014 Change
Net banking income 857 665 + 192
o/w bi-curve + 34 – 46 + 80
o/w issuer spread – 12 – 62 + 50
o/w Credit Value Adjustment / Debit Value Adjustment + 28 + 40 – 12
NBI excluding IFRS valuations 807 733 + 74
o/w impact of securitisation portfolio transfer 0 – 52 + 52
NBI excluding the impact of IFRS valuations and securitisation portfolio transfert 807 785 + 22

The residual progress is the result of steady improvement in commercial margins on new loan production.

Operating expenses totalled €528m, lower than in 2014, despite the impact of the €12m contribution to the Single Resolution Fund.

This decrease in operating expenses in 2015 was mainly the result of a reduction in labour costs (particularly as a result of the provisional retirement agreement instituted in 2012), tight cost control and savings in IT service continuity. A key milestone of this cost cutting plan, the migration of Crédit Foncier’s information system to Caisses d’Epargne’s, was successfully carried out in November.

Cost of risk resulted in a net provision of €237m, compared with €110m in 2014. This increase was mainly due to the exceptional €103.7m loss recorded on the sale of shares in the Austrian bank Heta Asset Resolution AG in the second quarter of 2015.

The Group share of net income stood at €48m for 2015.

The prudential ratios were therefore met, with a Common Equity Tier One ratio (CET 1 Basel III) of 9.6%.