Investor presentation - Banque Fédérative du Crédit Mutuel

Investor presentation
March 2011
www.bfcm.creditmutuel.fr
Disclaimer
Results
Liquidity
Capital
Tomorrow
Covered Bonds
Appendices
•
This presentation has been prepared by Banque Fédérative du Crédit Mutuel ("BFCM") solely for use in the roadshow
presentation
•
CM5‐CIC is constituted by the addition of 5 ‘Fédérations’ of the Crédit Mutuel : Centre‐Est‐Europe, Sud‐Est, Ile de France, Savoie Mont‐Blanc and Midi‐Atlantique
•
As of January 2011, 5 other Fédérations have joined the Group : Loire Atlantique, Normandie, Centre, Dauphiné‐Vivarais and Méditerranée to form CM10‐CIC
•
Crédit Mutuel‐CIC represents the perimeter of CM5‐CIC until December 31st 2010 and CM10‐CIC as of January 1st 2011 •
Statements that are not historical facts, including statements about Crédit Mutuel‐CIC’s 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 CM10‐CIC Group nor BFCM undertakes any obligation to update publicly any of them in light of new informations 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. Crédit Mutuel‐CIC 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
•
Financial Dec 2010 are provisory and non audited data 2
Agenda
• CM 10‐CIC at a glance
• Highlights & results
• BFCM : Central funding entity
3
A regional bank with solid rankings in France 2009
• Crédit Mutuel group:
a powerful distribution capacity, demonstrated by leading positions
Retail banking
Corporate banking
‘Bancassurance’
3rd
largest retail bank
3rd
banking network for consumer credit
3rd
home‐loan
provider 3rd
largest bank
For SMEs
bank of 50 companies among the top 100
2nd
biggest
agricultural bank
in France
1st
in non life insurance
4th in life insurance
2nd
in electronic
banking
Biggest
CCTV in
France
largest bank for associations & work councils
Technologies
1st
mobile phone
bank
4
CM10‐CIC : a co‐operative retail‐oriented Group
•
1,250 Caisses de Crédit Mutuel (CCM) hold the capital of their central bank, the Caisse Fédérale de Crédit Mutuel (CFCM)
CM10‐CIC’s organization
As at January 1st 2011
> CCM and CFCM share a unique banking license
4 million members
•
The Caisse Fédérale de Crédit Mutuel holds 95% of BFCM S.A., a commercial bank which :
> Coordinates activities of its subsidiaries : finance, insurance, real estate, IT
> Manages the liquidity and the debt issues of the Group •
More than 23 million customers
> Through 4,500 branches in France, Germany, Spain and West European countries
•
‐ elect their representatives
‐ own 1,250 local “Caisses de Crédit
Mutuel” which own the Caisse Fédérale de Crédit Mutuel
BFCM S.A.
Retail banking, insurance and related activities are the recurrent source of revenues
> These related activities include private banking, private equity, Corporate & Investment banking
> Near 90% of Net Banking Income come from the ‘Bancassurance’ activity
•
Financial strength due to the mutual structure
> A pay out < 10%
5
CM10‐CIC = various networks
A cooperative bank with a low risk profile, focused on retail banking across various networks
+
CIC network
+
+
CM10 network
BSD-CIN
Normandie
Ile de France
(Caen)
(Paris)
CIC-EST
Centre Est Europe
(Strasbourg)
Centre
Loire Atlantique
CIO-BRO
Sud Est
Savoie Mont Blanc
(Nantes)
(Annecy)
Dauphiné Vivarais
Midi-Atlantique
(Toulouse)
Lyonnaise Banque
(Lyon)
Centre Ouest
(Valence)
Midi Méditéranée
(Marseille)
S-Bordelaise
+
(Orléans)
&
6
Fédérations
Fédérations
Adhésion
100 %
CM10‐CIC organisation
Centre
Centre Est
Est Europe
Europe ;; Sud-Est
Sud-Est ;;
Île-de-France
;
Savoie-Mont
Île-de-France ; Savoie-Mont Blanc
Blanc ;;
Midi
Atlantique
;
Dauphiné-Vivarais
Midi Atlantique ; Dauphiné-Vivarais ;;
Loire
Loire Atlantique
Atlantique Centre
Centre Ouest
Ouest ;;
Normandie
Normandie ;; Centre
Centre ;; Méditerranéen
Méditerranéen
100 %
As at January 2011
51 %
50 %
5%
(BFCM)
(BFCM)
Caisses 80 %
ACM 20 %
Caisse
Caisse Fédérale
Fédérale
de
de Crédit
Crédit Mutuel
Mutuel
50 %
50 %
95 %
plateforme
plateforme
20 %
25 %
4,99 %
92.3 %
Caisses de
Crédit Mutuel de :
Centre Est Europe
Sud Est
Finance
Finance
IT
IT
Île-de-France
Loire Atl. Centre Ouest
Centre
Normandie
Dauphiné Vivarais
Méditerranéen
SME
BECM
Real
Real estate
estate
Private
Private bk
bk
Private
Private equity
equity
**Agence
AgenceImmobilière
Immobilière
**Lease
Lease
**Participation
Participation
Immobilière
Immobilière
SAR
SAREst
Est......
Sofedim
Sofedim
CMH
CMH
CIC
CICBq
BqTransatlantique
Transatlantique
BT
BTLuxembourg
Luxembourg
BT
BTBelgium
Belgium
Banque
Banquede
deLuxembourg
Luxembourg
CIC
CICSuisse
Suisse
Banque
BanquePasche
Pasche
Dubly
DublyDouilhet
Douilhet
BLC
BLCGestion
Gestion
GPK
GPKFinance
FinanceSA
SA
CIC
Banque
CIC BanquePrivée
Privée
CM-CIC
CM-CICCapital
Capital
Finance
Finance
ACM
Savoie-Mont Blanc
Midi Atlantique
Insurance
Insurance
**Asset
AssetManagement
Management
**Bail
Bail
**Covered
CoveredBonds
Bonds
**Epargne
EpargneSalariale
Salariale
**Gestion
Gestion
**Laviolette
LavioletteFinancement
Financement
**Securities
Securities
**Titres
Titres
Sofémo
Sofémo
FactoCIC
FactoCIC
ESN
ESN
**==CM-CIC
CM-CIC…
…
Euro
EuroInformation
Information
EID
EID--EIP
EIP
EIS
EIS--Sicorfé
Sicorfé
EPS
EPS
EIDS
EIDS
ETS
ETS
Euro
EuroGDS
GDS
Euro
EuroP3C
P3C
Euro
EuroTVS
TVS
EurAfric
EurAfricInformation
Information
IID
IID//DPS
DPS
Keynectis
Keynectis
CardProcess
CardProcess
NRJ
NRJMobile
Mobile
Axxès
Axxès
GACM
GACM
ACM
ACMVie
VieSAM
SAM
ACM
ACMVie
VieSA
SA
Sérénis
SérénisVie
Vie
ACM
ACMIARD
IARD
Sérénis
SérénisIARD
IARD
ACM
ACMServices
Services
Partners
Partners
RACC
RACCSeguros
Seguros
RMA
RMAWatanya
Watanya
Astree
Astree
ICM
ICMLife
Life
ICM
ICMRé
Ré
Procourtage
Procourtage
**==CM-CIC
CM-CIC…
…
Holding,
Holding,
Nord
CIC Nord Ouest
Est
CIC Est
Ouest
CIC Ouest
Sud Ouest
CIC Société
Bordelaise
Sud Est
CIC Lyonnaise
de banque
100 %
100 %
100 %
100 %
100 %
7
The members stakeholders : a strong mutual identity
•
Members have significant involvement in the Group's life
 800 board of directors with 10 meetings a year
 11,000 elected representatives
 500,000 people who attend the AGM
•
« Parts A »: unitholders are joint‐owners and become members of their local bank
>
>
Voting rights : 1 person = 1 vote
Right to examine results and take part in the decisions of the local bank
« Parts B » in Group's equity capital
5
4 ,7
+€ 0.3 bn
4
« Parts B »: a unit carrying the right to a return approved by the AGM, source of core equity
>
>
>
3
300,000 subscriber members
Individual upper limit of €50,000
Each member has an average investment of €16,000
2
1
€ bn
•
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Ju n e
2010
8
After the development in Germany, the group will develop an offer in Spain in response to market challenges
•
A progressive and well controlled European development, purely retail banking focused •
Acquisition of Citibank Deutschland in 2008, rebranded Targobank
•
•
>
333 branches in Germany in 2008
>
A global retail bank with a recognized Consumer Finance know how
>
An excellent geographical & business fit
Co‐acquisition of 123 branches in Spain in 2010 in partnership with Banco Popular Espanol
>
A new banking platform with 123 branches and 505 employees distributed throughout Spain
>
Pursuit of opportunities for growth in the Spanish and Portuguese markets, including the participation in the current underway reorganization of the Spanish financial sector >
€ 2bn in assets and the strongest of the Spanish banking sector capital ratio : 13% >
Crédit Mutuel also becomes a core shareholder of Banco Popular with a 5% stake
France, Germany, Spain, a strong consistency
9
Agenda
• CM5‐CIC at a glance
• Highlights & results
• BFCM : Central funding entity
10
Activity : solid performance and improvement of the loan to deposit ratio
•
Clients value a strong partner to support their projects
> Individuals, Associations, Professionals, Corporates : +285.000 clients (for CM5‐CIC scope)
> Branches network development : +21 to 4.000
> €229,3bn in customer loans (+ 5.2% yoy)
–
•
Clients maintain strong confidence in the Group’s financial strength
> €30.0bn increase in savings to €430.0bn
–
–
–
•
of which € 115,5bn in home loans (+7.7%) in the sound French residential real estate market
Of which € 15bn up in clients‘ deposits
Of which € 5bn up in insurance savings
Of which € 10bn up in financial savings
Deposits grow twice as fast as Loans : +11,5% vs +5,2%
Outstanding Loans
€ bn
240
229,3
230
220
+5.2%
218,0
210
200
2009
2010
Outstanding Deposits
€ bn
160
154,5
+11.5%
150
140
138,6
130
120
2009
2010
11
Dynamism and resilient business model lead to an overall good performance in 2010 : € 2.3bn Net Result (+63%)
Revenues by Business Lines
• Group’s profitability driven by :
Revenues (€ K)
2009
2010
Δ 10/09
Retail banking
7 661
8 401
+9,7%
• Commercial dynamism
Insurance
956
1 198
+25,3%
Private banking
397
404
+1,8%
>
Strong rise in revenues confirmed : NBI +7,6% to €10.9bn
CIB
1 532
1 074
‐29,9%
>
Proven strength of ‘Bancassurance’ model : +11,4% representing 88% of the consolidated NBI
PE
49
191
+289,8%
‐473
‐379
‐19,9%
>
CIB : Activities are definitely client‐driven
10 122
10 889
+7,6%
–
–
Corporate Banking’s resilient & profitable business
Investment Banking : Plan achieved to reduce equity capital allocated to market activities : from €550 to €350 mio
Holding & structure
Total NBI
€m
Operating Efficiency
12 000
10 889
10 000
• Operating efficiency >
Recurrent ability to industrialize processes and lower cost‐to‐
income ratio, despite reducing Inv Banking weight
>
3,8 pts gain yoy in ‘Bancassurance’ cost‐to‐income ratio (under 55%)
• Continued reduction in the cost of risk Net Banking Income
8 000
6 000
EBITDA
5 795
4 533
4 000
2 000
1 409
0
2008
2009
Cost of Risk & Profitability
€m
2 500
>
€ 0.6bn (‐34%) 2 000
>
Nature of the Retail banking oriented business model
1 500
>
Conservative and prudent approach to risk taking, strong risk management and monitoring
1 000
500
2010
2 341
1 305
1 064
Net profit
509
Cost of risk
0
2008
2009
2010
12
A €229bn loan portfolio with balanced and high quality assets
Breakdown of Assets portfolio by categories of loans
•
€229.3 bn loans as of Dec 31st 2010
•
Home loans are the core of lendings
Indi v. cons umer fi na nce
11%
Others
9%
Corpora te, SME a nd pri va te pro
29%
> >51% (€115.5bn) of the total outstanding
Indi v. home l oa ns
51%
> Y‐o‐Y increase : +7.7%
> Low risky business as the French property
market is very sound
Breakdown of Assets portfolio by internal rating
€bn
120,0
1,6% E‐
CM5‐CIC excl. Targobank & Cofidis
100,0
80,0
E‐ (default) D, E+
A,B,C
60,0
40,0
4%
20,0
10,4%
5,6%
0,0
Home Loans
Equipment
Consumer
Finance
Others
13
Group’s equity capital : 10.8% T1 ratio
•
Due to the cooperative status, core capital is constituted by members shares and reserves > Each member can hold up to €50,000 > Average investment is €16,000 > Regular and continual inflow of subscription by the members
June 30th 2010
Capital’s breakdown
Members equity
21%
Non‐distributable reserves
60%
Minority interests
12%
Perpetual Subordinated Notes
7%
TOTAL
100%
> Massive inflow of member’s subscription by special campaign
Total Regulatory Capital vs RWA (€ bn)
•

Low pay‐out policy and automatic capitalization
RWA
152,3
> more than 90% of annual net profit are locked in by‐
law non‐distributable reserves
•
RWA down vs Regulatory capital up lead to continuous financial strengthening
TRC
17,9
TRC
19,3

RWA
146,0
Tier‐1 10 : 10,8%
Tier‐1 09 : 10,0%
> 10.8% Tier‐1
> €19.3 bn Regulatory capital
Dec 2009
Dec 2010
14
Agenda
• CM5‐CIC at a glance
• Highlights & results
• BFCM : Central funding entity
15
BFCM = Central funding entity with a strong capacity to generate liquidity
•
•
BANQUE FEDERATIVE du CREDIT MUTUEL (BFCM) a French credit institution >
which serves as the holding >
Which acts as central financing entity of the Crédit Mutuel‐CIC Group
>
Which holds CM‐CIC Covered Bonds
With strong senior unsecured debt ratings Short term
Long term
Outlook
•
And various debt programs
P‐1
Aa3
Stable
A‐1
A+
Stable
F1+
AA‐
Stable
Type of programs
ceilings
French CD
60
ECP
25
London CD
‐
BMTN
6.5
EMTN
CM‐CIC Covered
Bonds
55
30
16
Strong Capacity to Generate Liquidity
•
BFCM Debt Breakdown (1)
Crédit Mutuel‐CIC applies a strict framework for the management of the liquidity risk
by type of investors
> Monitored by BFCM which has a global vision of the liquidity risk of the Group
Banks
56%
> Based on a centralized ALM management which defines common rules to all group entities
•
Financial inst
17%
Insurance
Network
3%
3%
The Group liquidity management policy relies on
> Applying a regulatory one month liquidity ratio for all the entities of the group
France
57%
– Covering more than 1 month of total closure of the markets
combined with client stress
– Can be raised in a few days up to 85% of short term funding
requirements
(1) Short, medium and long‐term
(2) Bonds issued
funding excluding deposits
by BFCM for the retail network
UK
22%
Europe
13%
Asia & ME US
1%
7%
by currencies
As of dec 31st 2010
> Limiting transformation ratios for commercial banking : 90% are matched by time bands from 3 months to 7 years
> Diversifying funding sources and vehicles
Funds
16%
by geography
> Liquidity buffer assignable & ECB eligible, appropriate to specific and systemic stress
> Limiting the reliance on the interbank market Central banks
2% Corporates
3%
€
72%
Others
3%
GB £
8%
US $
17%
17
Medium and Long‐Term Funding – Issuing Policy
As at January 2011
•
2011 MLT issuance plan around €16bn > €6bn have been already raised as at January
> Collateralized Public Issues : €3.6bn > Unsecured Public Issues : €2.4bn
•
Total MTL outstanding : €64bn
> Collateralized Public Issues : €16.1bn
AA BFCM Senior Unsecured Bond 2010‐11 Issues
Size
(‘000.000)
Currency
Format
Maturity janv‐10
850
1 250
1 000
500
1 000
1 750
€
€
€
€
€
€
1.5Y
3Y
10Y
2Y
10Y
2Y
2011
2013
2020
2012
2020
2013
Size
(‘000.000)
Currency
Format
Maturity
1 500
1 000
1 000
1 000
1 000
500
250
1 500
€
€
€
€
€
€
€
€
5Y
7Y
3Y
10Y
12Y
9.5Y
12Y
3Y
2015
2017
2013
2020
2023
2020
2023
2014
mars‐10
juil‐10
sept‐10
Oct‐10
janv‐11
> Unsecured Public Issues : €28bn
> Retail Network Issues : €5bn •
A competitive position in selective debt markets
AAA CM‐CIC Covered Bond
2010‐11 Issues
janv‐10
Feb‐10
juin‐10
sept‐10
janv‐11
janv‐11
févr‐11
févr‐11
18
Appendices
• Contact list
19
Contact details
• Christian Klein, Managing Director – CFO > [email protected] / T : +33 (0) 1 45 96 79 01
• Christian Ander, Head of Funding & Capital Raising > [email protected] / T : +33 (0) 1 45 96 79 20 www.bfcm.creditmutuel.fr
• Jérôme Linder, Head of FIG > [email protected] / T : +33 (0) 1 40 16 28 30
www.cic.fr
• Eric Cuzzucoli, Head of Funding > [email protected] / T : +33 (0) 1 40 16 28 11
• Sandrine Cao‐Dac Viola, Head of Investor Relations
www.cmcic‐cb.com
> [email protected] / T : +33 (0) 1 40 16 28 13 / F : +33 (0) 1 45 96 79 19
20