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%
|Net banking income||857||665||192|
|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|
|GROUP SHARE OF NET INCOME||48||15||33|
|C/I ratio *||61.6%||82.3%||-20.7 pts|
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:
|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%.