14.08.04 .2014 First-half results
4 August 2014
2014 FIRST-HALF RESULTS
Crédit du Nord Group maintained its good financial and sales performance.
Consolidated net banking income: EUR 959.0 million, growth of +0.9%*
Operating expenses controlled, down by -0.3%
Cost of risk stable: 55bp of loan outstandings
Net income (Group share): EUR 175.4 million, growth of +4.5%*
Crédit du Nord’s Board of Directors met on 23 July 2014 to approve the Group’s 2014 first-half
In a weak economic environment, the Group maintained solid results.
Consolidated net banking income amounted to EUR 959.0 million, up +0.9%*.
The first six months of 2014 were characterised by strong growth from the margin on deposits (+8.3%)
due to the combined effects of sustained inflows of demand deposits and the lower rate on Livret A
savings accounts. The period also saw a -4.2% decline in the margin on loans linked to lacklustre
demand in the market for Business customers and competitive pressure in the market for Individual
customers. The high level of prepayments in 2013 also provided an unfavourable base of comparison.
Despite the ceiling on trading fee income and weak loan demand, net fee income rose by +2.5% over
the half year, sustained by momentum from financial savings and life insurance in particular.
Operating expenses were contained, declining by -0.3%.
At 62.5%*, the cost-to-income ratio fell by 0.7 points compared to the first half of 2013.
Cost of risk was stable at 55 basis points in an environment that remained difficult.
Crédit du Nord Group closed the first half of 2014 with consolidated net income (Group share) of
EUR 175.4 million, a +4.5%* improvement.
* Change restated for the impact of the application of IFRS to future commitments related to home loan savings products
(+EUR 1 million in 2013, -EUR 1.15 million in 2014 before tax), the fair value measurement of financial liabilities
(-EUR 28.15 million in 2013, -EUR 7.24 million in 2014 before tax), and the application of IFRS13 – Fair Value Measurements –
to the valuation of derivative products, notably credit value adjustments (CVA) and debit value adjustments (DVA)
(-EUR 27.67 million in 2013, +EUR 3.49 million in 2014 before tax). The change was also restated for the Amundi dividend
collected in 2013 (+EUR 8.05 million). This equity interest was sold in December 2013. Pursuant to IFRS 11, Antarius is now
consolidated using the equity method in the Group’s financial statements as from 1 January 2014. Changes over the half-year
period are shown on a proforma basis for this accounting method.
Regional banks backed by a national group
Crédit du Nord Group was established through the grouping of some 80 regional banks that have
been pooling their respective strengths and talents over more than 160 years.
It is now made up of eight regional banks, each with the particular ability to offer the advantages of a
bank on a human scale, firmly rooted in its region, and the benefits of a group on a national scale.
Customers of the Crédit du Nord Group banks enjoy the benefits of having contact people who know
the local economic fabric and benefit from a centralised, multimarket, multibank and multichannel
information system that makes it possible to conduct all its transactions in all of the Group’s 913
A growing number of customers find this model appealing. The active Individual customer base has
grown by +2.3% and the active Business customer base has expanded +1% since 30 June 2013.
For Professionals, the active customer base has grown by +2.6% since 31 December 2013.
“By your side”: not just a slogan, a reality
The Crédit du Nord banks stand alongside their individual, professional and business clients to help
make their plans into reality.
Accordingly, in the first half of 2014, despite a gloomy economy and sluggish demand, they distributed
over EUR 1.7 billion in housing loans to Individuals and continued to contribute to financing the
economy with close to EUR 1.4 billion disbursed in the form of equipment loans or leases.
The Crédit du Nord Group banks also participate in cultural and sports-related outreach in the regions
where they are located through regular sponsorship activities.
Proximity, expertise, service quality and customer satisfaction
Customers find that the values intrinsic to the standards of the Crédit du Nord banks reflect their
Crédit du Nord Group lets their customers choose how they want to interact with their banks, based on
the customers’ needs and schedule: face to face at the branch; alone on the internet, smartphone or
tablet using mobile applications; with their remote account manager (subscription of basic products by
telephone and email for Individual customers); or with their account manager at the customer’s home
The Group’s digital offering is constantly enhanced so that it can offer a complete range of services in
the Apple and Android environments.
Employees of Crédit du Nord banks listen to their customers so that they can best advise them based
on their needs, their options and their objectives. In an uncertain economy in which some customers
are afraid to see their situation become weaker, they provide a full range of products (savings,
personal protection, insurance) to protect their futures, their families and their assets.
For more specialised problems, the Group’s experts (wealth management advisors, specialists in
electronic funds transfers, web services, leases, employee savings, import/export services, etc.) are
able to provide them with customised solutions.
Banks that focus on the customer relationship
The Crédit du Nord banks are concerned about how their customers feel, and ask them regularly
about their level of satisfaction. This starts as soon as the relationship begins, with a questionnaire
sent to each new customer after six months. It continues with an annual survey given to a wide sample
of customers. The Group also conducts telephone campaigns and mystery visits in the branches to
ensure that the quality of service delivered meets expected standards.
The Group‘s performance is also measured by external barometers. In 2014, the competitive survey
conducted by the CSA Institute(1) ranked Crédit du Nord among the top in terms of satisfaction: it once
again ranked first in the market for Business customers and still ranks among the leaders in the
Individual and Professional customer markets.
Competitive barometers to measure customer satisfaction conducted by the CSA Institute among a representative
sample of over 10,500 Individual, Professional and Business customers of the ten main banks in the market.
KEY FINANCIAL DATA (GROUP CONSOLIDATED DATA)
Pursuant to IFRS 11, Antarius is now consolidated using the equity method in the Group’s financial
statements as from 1 January 2014. Changes over the half-year period are shown below on a
proforma basis for this accounting method.
In EUR m
Net income (Group share)
In EUR m
Restated for the effects of the application of IFRS relating to future commitments associated with home loan savings products,
the fair value measurement of financial liabilities, and the application of IFRS 13 – Fair Value Measurements – to the valuation
of derivative products, notably credit value adjustments (CVA) and debit value adjustments (DVA). The change was also
restated for the Amundi dividend collected in 2013. This equity interest was sold in December 2013.
Limited review procedures are being carried out by the statutory auditors.
About Crédit du Nord Group:
Crédit du Nord Group comprises eight regional banks - Courtois, Kolb, Laydernier, Nuger, Rhône-Alpes, Société Marseillaise de
Crédit, Tarneaud and Crédit du Nord - and one brokerage firm, Gilbert Dupont.
The Group’s 9,500 employees and network of 910 branches serve 2.2 million Individual customers, 209,000 Professional
customers, and 48,000 Business customers.
Crédit du Nord Group's entities enjoy a large degree of freedom in the management of their activities, ensuring quick decisionmaking and exemplary responsiveness to their customers' needs.
The strategy of the Group’s banks is based around three core aims:
- to be a reference bank in terms of the quality of their customer relationships;
- to develop a high degree of individual and collective professionalism;
- to offer customers state-of-the-art services and technologies.
The quality and strength of Crédit du Nord Group’s results is recognised by the market and through Standard & Poor’s long-term
rating of A and Fitch’s long-term rating of A.
Crédit du Nord Group is a wholly owned subsidiary of Societe Generale.
Crédit du Nord Group press contacts:
Crédit du Nord Group
Head of Press Relations
Tel.: +33 (0)1 40 22 53 21
Crédit du Nord Group
Head of Communication
Tel: +33 (0)1 40 22 27 53