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Consolidated results of Groupe Crédit Foncier

The Group share of net income in 2016 was €57m.

Crédit Foncier’s main consolidated financial indicators at December 31, 2016 were as follows:

  • Loan production: €9.6bn
  • Outstandings (end of year): €92,5bn
  • Net banking income: €797m
  • Group share of net income: €57m
  • Total assets: €126.7bn
  • Consolidated equity (group share): €3.5bn
  • Consolidated European capital adequacy ratio: 11?5%, of which Common Equity Tier One (CET1): 9.2%

(in €m) 2016 2015 Change
Net banking income (NBI) 797 857 60
Operating expenses -511 -528 17
Gross operating income 286 329 -43
Cost of risk -120 -237 117
Income before tax 173 95 78

Net banking income amounted to €797m, up 7% on 2015, mainly due to the decline in Net interest margin impacted by a high level of early repayments given the low rate environment.

  2016 2015 Change
Net banking income 797 857 -60
 o/w impact of IFRS valuations registered in Net Interest Margin +18 +50 -32
Bi-courbe -7 + 34 -41
Issuer spread 0 -12 +12
CVA/DVA +25 +28 -3
NBI excluding the impact of IFRS valuations 779 807 28

Net banking income excluding IFRS valuations amounts to €779m in 2016 compared with €807m in 2015. It stays very influenced by a high level of early repayments.

Operating expenses totalled €511m in 2016, including €19m of contribution to Single Resolution Fund (SRF). In 2015 operating expenses accounted for €528m including €12m contribution to SRF. Consequently, operating expenses excluding SRF contribution reduced by €24m illustrating the continuous efforts aimed at cost savings.

Gross operating income amounts to €286m compared with €329m in 2015.

Cost of risk stands at €120m (vs €237m in 2015 due to a €104m impact following the disposal of the exposure to HETA Asset Resolution AG). This cost of risk reduction results from an important improvement of the Corporates and subsidiaries’ cost of risk.

The total tax expense amounted to €114.7m, including the €50m impact of the variable tax carryforward on the deferred tax assets related to the Finance Law of 2017.

Therefore, the Group share of net income stands at €57m in 2016 compared with €48m a year earlier.