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|
|Gross operating income||88||126||-30.2|
|Cost of risk||-51||-55||-7.3|
|Income before tax||40||71||-43.7|
|GROUP SHARE OF NET INCOME||18||39||-53.8|
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.