Crédit Mutuel -CIC - Banque Fédérative du Crédit Mutuel

Crédit Mutuel-CIC
Investor Presentation
January 2009
1
Disclaimer
The financials data in this presentation are related to CM4-CIC
except specified
•
This presentation has been prepared by Banque Fédérative du Crédit Mutuel ("BFCM") solely for use in the roadshow presentation. Statements
that are not historical facts, including statements about Crédit Mutuel-CIC ’s (the “CM4-CIC Group”) and BFCM’s beliefs and expectations,
are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore undue reliance
should not be placed on them. Forward-looking statements speak only as of the date they are made, and neither CM4-CIC Group nor BFCM
undertakes any obligation to update publicly any of them in light of new information or future events.
•
This presentation is confidential and is not to be reproduced by any person, nor be distributed to any person other than its original recipient.
CM4-CIC Group and BFCM take no responsibility for the use of these materials by any such person. This presentation is not an offer to sell
or the solicitation of an offer to purchase any notes and no part of it shall form the basis of or be relied upon in connection with any contract
or commitment whatsoever.
•
Unless otherwise indicated, the information contained in this presentation relates to the consolidated financial performance of CM4-CIC
Group. CM4-CIC Group’s and BFCM’s figures for December 2005, 2006 and 2007 are presented under IFRS, in accordance with the European
regulations. Financial figures for the 2004 financial year were prepared under 2004 IFRS, which do not include IAS 32, IAS 39 and IFRS 4.
Financial figures for the 1998-2003 financial years were prepared under French GAAP. Changes from one period to the next are calculated
on the basis of the reported figures for these years. As a result, year over year changes with respect to financial figures prepared on the
basis of IFRS and French GAAP are not directly comparable.
2
Crédit Mutuel Centre Est Europe Group – “CM5-CIC”
CM4-CIC Financial Performance
CM-CIC International division
Acquisition of Citibank Deutschland
CM4-CIC recent developments
3
CM5-CIC
As of January the 1st, 2009
Crédit Mutuel Midi-Atlantique joins Crédit Mutuel CEE, SE, IdF to
form CM5(*)-CIC
1- «CEE» Centre-Est-Europe
2- «SE» Sud-Est
3- «IdF» Ile-de-France
4- «SMB» Savoie Mont-Blanc
5- «MA» Midi-Atlantique
4
CREDIT MUTUEL = 18 «Fédérations»
18 FEDERATIONS
-Anjou
-Antilles-Guyane
-ARKEA :
CM5
Bretagne,
Massif-Central,
5 Fédérations = CM5
3
Sud-Ouest,
-Centre
Crédit Mutuel CEE, SE, IdF, SMB, MA
1
-CM5 :
Centre Est Europe
Ile de France
Sud-Est
2
Savoie Mont Blanc
4
1- «CEE» Centre Est Europe
2- «SE» Sud-Est
3- «IdF» Ile de France
4- «SMB» Savoie Mont Blanc
5- «MA» Midi-Atlantique
Midi Atlantique
-Dauphiné-Vivarais
-Méditerranéen
-LACO :
Loire Atlantique ,
5
Centre Ouest,
-Maine Anjou Basse
-Normandie
CM5 is the largest entity of Crédit Mutuel with
64% of CM’deposits
70% of CM’loans
78% of CM’net profit
75% of CM’ total assets
-Nord-Europe
-Normandie
-Océan
Source: Confédération Nationale of Crédit Mutuel
5
CM5-CIC Group: two networks
+
CM5 network
among the 18 Fédérations
of the Crédit Mutuel Group
CIC network
with its 5 regional banks
North
North
CIN
CIN--BSD
BSD
East
East
Ile de France
(Paris)
Centre Est Europe
(Strasbourg)
CIC-Est
CIC-Est
West
West
BRO
BRO--CIO
CIO
South
SouthEast
East
Sud Est
(Lyon)
Lyonnaise
Lyonnaisede
deBanque
Banque
Savoie Mont Blanc
(Annecy)
South
SouthWest
West
S.Bordelaise
S.Bordelaisedu
duCIC
CIC
Midi-Atlantique
(Toulouse)
CM5-CIC represents 69% of the Net Banking Income and 75% of the
Total Assets of the overall Crédit Mutuel Group(1)
1.
As of end of 2007
6
Crédit Mutuel–CIC
7
Overview of CM-CIC Group
as at 31 December 2007
Key Figures
Net banking income: 10.6 billions €
Shareholders’ equity attributable to group share: 26.4 billions €
Net income attributable to group share: 2.7 billions €
59,450 employees
One of the first largest Retail Banking Group in France with
5,148 branches
14.9 millions of clients
17.3% domestic market share in loans
12.7% domestic market share in Deposits
469.0 billions € of Savings
258.6 billions € of Credits
2nd Home loaners
and …
1st bank-insurer in non life and the 4th in Life Insurance.
2nd bank for corporates
2nd for electronic banking
2nd bank for agriculture
8
CM5-CIC
9
CM4-CIC(1) overview
as of 30 June 2008
A cooperative structure: CM4-CIC Group
•
•
•
•
•
•
•
3rd largest retail banking group in France in terms of number
of branches
Leader in French bank-insurance, payment systems,
electronic banking
8.1 million customers and 3,406 branches
Total Assets of €425 billion
Total Capital of €20 billion
Tier 1 ratio(2): 8.52% (Basel I) and 8.80% (Basel II)
Total Regulatory Capital of €19.6 billion(2)
A financial arm: BFCM
Holding Company of the Group
Conducts the funding and the capital raising of the Group
Acts as the central treasury of the Group
Long Term Ratings: Aa3 by Moody’s
Short Term Ratings: P-1 by Moody’s
A+ by S&P
A-1 by S&P
AA- by Fitch Ratings
F1+ by Fitch Ratings
(1) Financal data are related to CM4-CIC ; CM4-CIC regroups 4 federations of Crédit Mutuel (Centre Est Europe, Sud Est, Ile de France, Savoie Mont Blanc) and CIC
As of 31-Dec-07
10
CM5-CIC Overview: a solid mutual Group
One member,
One vote
2 million member
Fédération
Fédération
Centre-Est-Europe
Centre-Est-Europe
Strasbourg
Strasbourg
Fédération
Fédération
Sud-Est
Sud-Est
Lyon
Lyon
¾
¾
stakeholders ¾
Fédération
Fédération
Ile-de-France
Ile-de-France
Paris
Paris
Stakeholders General meetings
Supervisory board
Board of directors
Fédération
Fédération
Savoie-Mont-Blanc
Savoie-Mont-Blanc
Annecy
Annecy
Fédération
Fédération
Midi
Midi Atlantique
Atlantique
Toulouse
Toulouse
Caisse Fédérale
de Crédit Mutuel
95%
BFCM
11
BFCM: the financial arm of CM5-CIC
Local Banks:
East, South East, Paris Region,
French Alps Region, South West
Caisse Federale de Cré
Crédit Mutuel
95%
BFCM
93%
56.5%
20.5%
Groupe Assurance
Credit Mutuel
(GACM)
100%
Other Subsidiaries:
- Private Banking
- Asset Management
- etc.
12
Crédit Mutuel Centre Est Europe Group – “CM5-CIC”
CM4-CIC Financial Performance
CM-CIC International division
Acquisition of Citibank Deutschland
CM4-CIC recent developments
13
CM4-CIC: a strong operating performance
Net Banking Income
€ mn
8 000
•
CM4-CIC Group posted a strong growth
in France where it conducts most of its
activities through a dynamic network of
local retail bank-insurance outlets.
France represented more than 95% of
CM4-CIC’s Net Banking Income in 2007
+34%
7 433
7 209
7 000
5 970
6 000
6 141
5 791
5 384
5 000
4 000
2002
2003
2004
2005
2006
2007
Net Profit
•
Net Banking Income and Net profit have
increased considerably over the past 6
years
+138%
€ mn
2 500
2 328
2 000
1 610
1 500
1 000
2 161
1 163
1 268
907
500
0
2002
2003
2004
2005
2006
2007
14
Financial Highlights – CM4-CIC Group
Solid performance for 2007
Dec-2007
Dec-2006
2007 / 2006
Total Assets
Total Deposits
Total Customer Loans
413,073
107,254
179,030
356,099
96,409
149,165
+16.0%
+11.2%
+20.0%
Net Banking Income (“NBI”)
Operating expenses
Gross Operating Profit
7,209
(4,193)
3,016
7,433
(4,064)
3,369
-3.0%
+3.2%
-10.5%
(124)
2,892
2,161
(143)
3 225
2,328
-13.3%
-10.3%
-7.2%
58.4%
8.52%/8.80%(1)
13%
55.0%
9.19%
16.90%
Cost of risk
Operating Profit
Net Profit
Cost/Income Ratio
Tier 1 Ratio (Basel I)
ROE
(1)
Note:
Basel II figure
CM4-CIC Group’s figures for December 2007 and 2006 are presented under IFRS, in accordance with the European regulations
15
Financial Highlights – CM4-CIC Group
Still profitable in H1 2008
Jun-2008
Jun-2007
H1 08 / H1 07
Total Assets
Total Deposits
Total Customer Loans
425,000
113,033
197,988
401,090
100,811
166,105
+6.0%
+12.1%
+19.2%
Net Banking Income (“NBI”)
Operating expenses
Gross Operating Profit
3,095
(2,283)
812
3,954
(2,207)
1,747
-21.7%
+3.4%
-53.5%
(165)
647
507
(66)
1,681
1,213
+150.0%
-61.5%
-58.2%
Cost of risk
Operating Profit
Net Profit
Source:
CM4-CIC Group Consolidated Accounts
16
CM4-CIC: key figures by business lines
A well diversified revenue base driven by retail banking and insurance
31-Dec-07
30-Jun-08
Total Net Banking Income
Retail
Retail Banking
Banking
€4,654m
€4,654m
(64.6%)
(64.6%)
€2,375m
€2,375m
(76.7%)
(76.7%)
Insurance
Insurance
€1,056m
€1,056m
(14.6%)
(14.6%)
€539m
€539m
(17.4%)
(17.4%)
Investment
Investment Banking,
Banking, Private
Private
Banking,
Private
Equity
Banking, Private Equity
€1,484m
€1,484m
(20.6%)
(20.6%)
€214m
€214m
(6.9%)
(6.9%)
Structure
Structure &
& Holding
Holding
€16m
€16m
(0.2%)
(0.2%)
-€33m
-€33m
€2,161 million
Total Net Profit
(ns)
(ns)
€507 million
Private Equity
17%
Retail
Banking
42%
Private
Banking
6%
Investment
Banking
10%
Insurance
25%
17
CM4-CIC has a safe risk profile
Strong focus on retail banking and insurance, mainly in France, provides
a non-volatile steadily growing revenue base
Evolution of Non-Performing Loans and Provisions
•
The NPL/Loans ratio has decreased
from 6.7% in 1998 –when it peaked
mainly on the back of the CIC
acquisition(1)– to 2.3% in 2007, as a
result of efficient risk monitoring
7,0%
70%
6,0%
60%
5,0%
50%
4,0%
40%
3,0%
2,0%
30%
1998
1999
2000
2001
NPL / Loans (LHS)
•
Provisions for NPLs have remained at
approximately 60-70% across the 19982007 period
2002
2003
2004
2005
2006
2007
Provis ions for NPL / NPL (RHS)
Cost of Risk / Loans
1,0%
0,78%
0,8%
0,57%
0,48%
0,6%
0,45% 0,47%
0,38%
0,4%
•
The cost of risk(2) has significantly
decreased over the last seven years
0,25%
0,11% 0,09%
0,07%
0,2%
0,0%
1998
Source:
Note:
(1)
(2)
1999
2000
2001
2002
2003
2004
2005
2006
2007
CM4-CIC Group Consolidated Accounts
CM4-CIC Group’s figures are presented under IFRS (in accordance with the European regulations) for 2007, 2006, 2005, under 2004 IFRS (which do not include IAS 32, IAS 39 and IFRS 4)
for 2004 and under French GAAP for years 1998 to 2003
In April 1998, CM4-CIC was chosen by the French government to acquire –via BFCM– a majority stake (67%) of the CIC group, the ninth-largest banking group in France at the time
(Net provisions + Realised Losses) / Total Outstanding Loans
18
CM4-CIC is well capitalised
CM4-CIC Group’s Total Capital and Tier 1 Ratio (Basel I) (1)
€ bn
9,67%
9,17%
8,69%
8.52%
25
7,49%
7,38%
6,82%
20
10,0%
9,19%
18,55
14,84
19,6
7,5%
15,83
15
5,0%
12,57
11,13
9,84
10
9,67
2,5%
5
0,0%
0
2000
2001
2002
2003
Total Capital
Source:
Note:
(1)
2004
2005
2006
2007
Tier 1 Ratio
CM4-CICGroup Consolidated Accounts until Dec 2006- Figures 2007
CM4-CIC Group’s figures are presented under IFRS (in accordance with the European regulations) for the 2007, 2006 and
2005 financial years, under IFRS (which do not include IAS 32, IAS 39 and IFRS 4) for the 2004 financial year and under
French GAAP for the financial years 2000 to 2003
Including €1.6 billion of hybrid Tier 1 Capital issued by BFCM in 2004 and 2005
19
CM4-CIC: A very limited exposure to toxic assets
•
As of 30 June 2008, CM4-CIC Group
holds a €2.8bn U.S. RMBS portfolio
(mark to market value) through its
subsidiary CIC-NY, of which:
–
•
Agencies and AAA-rated
RMBS (95% of the portfolio)
–
Subprime loans (2%)
–
CM4-CIC intends to
portfolio to maturity
hold
U.S. RMBS Exposure – Breakdown by type(1)
Subprime
2%
U.S.
Agencies
40%
this
As of 30 June 2008, CIC-NY has booked
cumulative losses of €439M on this
portfolio
Alt-A
45%
Prime
13%
U.S. RMBS Exposure – Breakdown by rating(1)
Non Agency - AA and
below
4%
Other exposures of CM4-CIC:
•
(1)
–
CMBS: €258M (no U.S.)
–
U.S. CDO: €128M
–
Liquidity facilities
€65M in Europe
–
€63M securities are covered by
monoliner
to
Agencies - AAA
40%
conduits:
Non Agency - AAA
56%
CM4-CIC has no exposure to SIV
Net exposure after impairment and hedging as of 30-Jun-08.
20
BFCM, the financing arm of CM5-CIC
Conservative strategy and sound financial profile are reflected in
BFCM & CIC’s strong ratings
Moody's
S&P
Fitch Ratings
BFCM
CIC
BFCM
CIC
BFCM
CIC
Short-Term
Ratings
P-1
P-1
A-1
A-1
F1+
F1+
Long-Term
Ratings
Aa3
Aa3
A+
A+
AA-
AA-
Stable
Stable
Stable
Stable
Stable
Stable
Outlook
21
Crédit Mutuel Centre Est Europe Group – “CM5-CIC”
CM4-CIC Financial Performance
CM-CIC International division
Acquisition of Citibank Deutschland
CM4-CIC recent developments
22
International financing
•
Develops a commercial offer to the benefit of the international
trade of our clients
•
Is the CM-CIC group leader for non OECD country risks and
management of interbank risks
•
Supports the CM-CIC network in this respect
•
Is the CM-CIC Business Entry point for Non-OECD banks
23
Correspondent banks network management
•
Buying Side
– The sole group structure devoted to negociate interbank services
with correspondents banks
•
Selling Side
– Develops a commercial business line in favor of
• International banks in the european payments arena
• Domestic banks in the domestic and european payments arena
•
Network management
– Manages the CM-CIC correspondent banks network for account of
the group
24
International in the CM-CIC domestic network
•
Aidexport :A specific team in charge of developping and
analysing business opportunities for our clients
•
A specific commercial offer and organisation to promote
international business and technicalities in the CM-CIC network
25
Crédit Mutuel Centre Est Europe Group – “CM5-CIC”
CM4-CIC Financial Performance
CM-CIC International division
Acquisition of Citibank Deutschland
CM4-CIC recent developments
26
CM4-CIC: why acquiring Citibank Deutschland?
CM4-CIC had a Limited International Coverage
•
•
CM4-CIC had a Concentrated Business Mix with
Limited Consumer Finance
38 representative offices and 4 foreign
branches spanning London, New York,
Singapore and Frankfurt
No retail network abroad
Breakdown of Outstanding Loans
(as of 31-Dec-07)
Housing Loans
52%
Others
8%
Lease
Financing
3%
Overdrafts
4%
Consumer
Loans Investment
4%
Credits
Cash Facilities
17%
12%
German Operations:
•
Branch established in 1999
•
30 employees
•
€1.4bn of credit to German Corporate clients
CM4-CIC wanted to diversify its business in terms of
geography and boost its consumer lending activity
27
CM4-CIC & Citibank Deutschland:
Geographical and business mix complementarities
Clear Business Synergies with
A New Entity Easy to Integrate
Clear Geographical Match
•
Acquisition of a key player
in consumer loans in
Germany, the first
European economy
•
Immediate synergies in
retail banking
•
An acquisition with a very
low execution risk (still retail
banking, keep local team,
etc.) and quickly accretive
Düsseldorf
Paris
Strasbourg
•
CM4-CIC has a strong
enough capital base to
Citibank Deutschland is an excellent growth
opportunity that
afford this acquisition
fits very well in CM4-CIC development strategy
28
Citibank Deutschland:
A Top 10 player in Germany for retail activities
Clients
(million)
Employees
(‘000)
Revenue
(€ billion)
(1)
44,0
(1)
161,2
13.6
6,5
11,0
5,0
11,7
3,3
3,1
1,0
1 135
671
3.0
5,8
1 146
1,1
2,7
5,9
3,8
3.578
3,8
28,3
13,4
4.427
21,0
21,5
14,5
8.5
28,9
257,0
24,5
Profit Before Tax
(€ million)
1,6
5,6
9,1
3,0
469
3,6
878
2,8
401
0,9
385
1,6
1,8
0,4
546
264
28
Figures for Deutsche Bank Privat- & Geschäftskunden AG
(1) Deutsche Bundesbank 2006 figures
Source: Groups’ accounts, retail banking segments only
29
Citibank Deutschland:
A Player Specialised in consumer loans and related retail activities
Citibank Deutschland’s Market Share
€130 bn
8,0%
7,1%
7,3%
19 mn
issued cards
6,0%
4,3%
4,1%
4,0%
€314 bn
2,6%
€310 bn
1,7%
2,0%
€564 bn
1,1%
0,3%
0,2%
0,5%
0,0%
Consumer Loans
Credit Cards
Current A ccounts
2006
Source: Deutsche Bundesbank, Citibank Deutschland
2007
Savings Products
Rewarded A ccounts
Estimated
market size
30
Citibank Deutschland:
A diversified retail product range
Citibank Deutschland’s Main Products
Credit Cards
ƒ No. 6 for credit issuer (VISA/MasterCard)
ƒ 780.000 credit cards in issue
ƒ 2007: €449 million receivables outstanding
Credit Cards
6%
Insurance
9%
Insurance
ƒ Leader position in distribution
ƒ Premiums: €3.3 billion life & non-life
Loans
Consumer
Loans
51%
Liabilities and
W e alth
24%
Overdrafts
10%
ƒ Personal instalment loans (PIL), overdraft,
sales finance, Margin Lending
ƒ 7%+ market share in PIL
ƒ Leading sales finance platform
ƒ €10.4 billion loans outstanding
ƒ Cooperation agreement with mortgage
Broker PlanetHome, to average home
financing loans
Wealth Management
ƒ 336,000 custody accounts
ƒ €12.5 billion AuM
Deposits
ƒ Checking Accounts, time
deposits, savings, investments
ƒ €9.9 billion customer liabilities
Distribution of NBI
Source: Group Accounts
31
Citibank Deutschland:
A significant distribution network in Germany
A Diversified Distribution Network
Points of Sale
Headquarters
Düsseldorf
Branches
ƒ 2,545 employees
ƒ 282 Branches
ƒ 2,054 FTE(2)
Mobile Sales Force
ƒ 237 advisors
ƒ 37 advisory points
Wealth Management
ƒ 538 consultants
ƒ 21 Citigold Centers
DABs et CETs(1)
ƒ 668 DABs (free access 2,500
DABs via ‘Cash Pool’)
ƒ 615 employees
CitiPhone Banking
ƒ 63 employees
Advisory Points
Revenues by Distribution Channels
Merch. Sale
Force
10.7%
Inv. Clusters
4.9%
Branches
79,8%
Sales Finance
ƒ 2,804 active outlets
ƒ Ca. 470 retailers
Direct Bank
ƒ 12 direct staff (Internet)
ƒ 1,383m visits on Homepage
Internet / Call
Centers
2,9%
Q1 2008
Bank@Work
1,7%
(1) CET’s (Citibank Deutschland Express Terminals).
(2) FTE: full-time employees
Notes: Total number of employees 6,733 (2007); 5,628 full-time employees.
Source: Company information
32
This Acquisition Consolidates CM4-CIC Retail Banking
and significantly enhances its geographical diversification
Source: Group Accounts
85% of
NBI
Private
Banking
6%
Wholesale
Banking
25%
CM4-CIC Pro-Forma (2007)
Retail
Banking
64%
Wholesale
Banking
15%
2007 NBI –
By Geography
2007 Net Profit –
By Business
2007 NBI –
By Business
CM4-CIC Standalone (2007)
Private
Banking
6%
Wholesale
Banking
12%
Insurance
Retail
15%
Banking
44%
Insurance
25%
Private
Banking
5%
75% of
Net Profit
Wholesale
Banking
21%
Private
Banking
5%
France
96%
Abroad
4%
France
78%
Retail
Banking
67%
88% of
NBI
Insurance
16%
Retail
Banking
52%
Insurance
22%
79% of
Net Profit
Abroad
22%
33
The acquisition allows CM4-CIC to become
A key player in the consumer credit market
50
French Groups – Total Consumer Loan Activity
40 (€ billion)
33,7
31,1
30
20
11.3
10,4
7,1
10
5,3
0.4
0
+
From a negligible presence in Consumer Lending before this acquisition,
CM4-CIC is now able to compete with its key French peers
Source: Groups’ accounts, consumer credit operations in dedicated entities only.
34
Crédit Mutuel Centre Est Europe Group – “CM5-CIC”
CM4-CIC Financial Performance
CM-CIC International division
Acquisition of Citibank Deutschland
CM4-CIC recent developments
35
CM4-CIC : A Key Player In The Consumer Credit Market
After Citibank Deutschland, Cofidis acquisition CM4-CIC Group become a significant
player in the European consumer credit market
40
35
30
Consolidated outstandings of consumer
loans specialized French credit institutions
25
Md€
20
15
10
5
0
36
The acquisition allows CM4-CIC to become
A key player in the consumer credit market
37
The Group in 2009
DEUTSCHLAND
Norway
Cofidis SA (France)
Cofidis Belgium
•
•
BFCM Francfort
BECM Francfort
•
Citibank
340 agencies in 219 cities
Sweden
Cofidis Italy
Irland
Cofidis Spain
Cofidis Slovaquie
Danmark
UK
Cofidis Rép Tchèque
Cofidis Roumanie
Succ Cofidis
Portugal
Swizerland
Portugal
•
•
Poland
CM-CIC Bail Belgique
Banque du Lux.
BT Belgium
Partners (Ass)
Citibank
Cofidis Belgium
Czech Rep
Slovakia
SPAIN
•
•
•
•
•
•
•
Lux.
Succ Cofidis
Hungary
•
BELGIUM
PaysBas Deutschland
Belgium
Serbrok
Correduria (Ass)
SA Nostra Vida
(Insurance)
Cofidis Spain
Royal Automobile
Club de Catalogne
(Insurance)
Hungary
Spain
Italy
Baléares
Luxembourg
Romania
•
•
•
•
Banco de Luxembourg
BT Luxembourg
ICM Life (Ass)
ICM Ré (Ass)
SWITZERLAND
Morocco
•
•
CIC Private BankingBanque Pasche
CIC Suisse
•
•
BPM
Cofidis Italy
Greee
MoROCCO / TUNISIA
•
•
•
BMCE
RMA Watanya
ASTREE (Ass)
Algeria
Tunisia
ITALY
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Further information:
BANQUE FEDERATIVE DU CREDIT MUTUEL
6 avenue de Provence
75452 Paris cedex 09
Group‘websites :
BFCM:
http://www.bfcm.creditmutuel.fr
CIC:
http: //www.cic.fr
http://www.cic.com.sg
CM-CIC Covered Bonds:
http: //www.cmcic-cb.com
Contact :
Sandrine Cao-Dac Viola
Head of Investor Relations
Tel: +33 (0) 1 40 16 28 13
Fax: +33 (0) 1 45 96 79 19
email: [email protected]
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