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Consolidated results of Groupe Crédit Foncier

The Group share of net income in the first half of 2017 was €18m.

Crédit Foncier’s main consolidated financial indicators at June 30, 2017 were as follows:

  • Loan production: €5.8bn
  • Outstandings: €88bn
  • Net banking income: €366m
  • Group share of net income: €18m
  • Total assets: €117bn
  • Consolidated equity (group share): €3.6bn
  • Consolidated European capital adequacy ratio: 11.5%, of which Common Equity Tier One (CET1): 9.2%

(in €m) First half of 2017 First half of 2016 Change, in %
Net banking income 366 401 -8.7
Operating expenses -278 -275 1.1
Gross operating income 88 126 -30.2
Cost of risk -51 -55 -7.3
Income before tax 40 71 -43.7
Income tax -21 -31 -32.3

Net banking income amounted to €366m, down by 8.7%  on the first  half  of  2016,   mainly  due   to  the   fall in  outstanding  loans (recorded  on the balance sheet) and the fact that the margin on new loan production was  well below that achieved  in 2016,  since  the maximum  allowable  interest  rate  (set  by  the  Banque   de  France) limited Crédit Foncier’s ability to offer long-term  financing, on which it is a market leader.

Operating expenses totalled €278m, including a €24m contribution to the Single Resolution Fund (SRF). In the first half of 2016, operating expenses amounted to €275m including a €19m contribution to the SRF.

The steady decline  in operating  expenses continued, illustrating the constant efforts  made  by Crédit  Foncier  since  2011  to  control  its costs. Excluding  the  contribution  to  the  SRF  and  the  impact  of a specific  provision  recorded in respect of a  new  retirement management   plan,   first-half  operating    expenses   amounted   to €244.8m, compared with €256.3m in the first half of 2016.

Cost   of  risk  stood  at  €51m,  down  7.3%  on  the  same   period  of 2016  (€55m).

The Group share of net income amounted to €18m for the first half of 2017, compared with €39m in the same period of 2016.