AnnuAl RepoRt 2008 - Crédit Coopératif

Transcription

Société coopérative anonyme de Banque Populaire à capital variable
R.C.S. Nanterre B 349 974 931 - APE 6419Z
33, rue des Trois Fontanot
BP 211 – 92002 Nanterre cedex
Tél. : 01 47 24 85 00
www.credit-cooperatif.coop
Groupe Crédit Coopératif - Annual Report 2008
Réf. ARF 2009 - Avril 2009 - ByTheWayCreacom - Document imprimé sur du papier recyclé sans chlore.
Crédit Coopératif,
annual report 2008
Crédit Coopératif Group
Annual Report 2008
4
A nn u al R eport 2 0 0 8
CONTENTS
Crédit Coopératif Group - Annual Report 2008
CHAIRMAN’S ADDRESS
p.7
THE CREDIT COOPERATIF GROUP
p.8
ORGANISATION OF THE CREDIT COOPERATIF GROUP p.10
CRÉDIT COOPÉRATIF WITHIN THE BANQUE
POPULAIRE GROUP p.12
ORGANISATION OF COOPERATIVE LIFE
p.13
GROUP GOVERNANCE p.14
KEY FIGURES FOR 2008
p.18
A-CHAIRMAN’S REPORT ON THE
PROCEEDINGS OF THE BOARD
OF DIRECTORS AND INTERNAL
CONTROL PROCEDURES
General introduction
1. MANNER IN WHICH THE PROCEEDINGS
OF THE BOARD OF DIRECTORS WERE
PREPARED AND ORGANISED 1.1 Composition of the board of directors
1.2 Role and functioning of the board of directors
1.3 Manner in which the proceedings
of the board of directors were prepared
1.4 Evaluation of the proceedings
of the board of directors
1.5 Powers of the company’s senior managers
1.6 Principles and rules used to determine
the remuneration of the senior managers
1.7 The Conseil National du Credit Cooperatif
(cncc - Credit Cooperatif National Council)
p.21
p.22
p.22
p.23
p.26
p.26
p.26
p.27
p.35
B-CREDIT COOPERATIF GROUP
MANAGEMENT REPORT
General introduction
1. activities 2008
of the CReDIT COOPeRATIF group
1.1 The economic and financial environment
1.2 Our customer segments
1.3Business activities at the service
of the real economy
3. GROUP ARCHITECTURE 3.1 Legal status
3.2 Subsidiaries
3.3 Associated non-subsidiary institutions
3.4 Equity participations on a partnership basis
4.BOARD OF DIRECTORS
AND GENERAL MANAGEMENT
4.1 Remits and functions at 31 december 2008
4.2 Remunerations and income paid
during the year
4.3 Proposed renewals
p.45
p.45
p.46
p.48
p.48
p.52
p.53
p.53
p.53
p.56
p.59
p.62
p.62
p.71
p.73
p.24
2.INTERNAL CONTROL PROCEDURE
p.28
2.1 General organisation
p.28
2.2 Risk monitoring and control
p.29
2.3 Organisation of the internal control procedures
relating to accounting and financial informationp.33
3. STATUTORY AUDITORS’ REPORT
ON THE CHAIRMAN’S REPORT
2. SOCIAL AND ENVIRONMENTAL
RESPONSIBILITY 2.1 A cooperative and partner bank
2.2 Socially responsible financing
and microfinancing
2.3 Human resources
2.4 Environmental impacts of the activity
2.5 Fondation Credit Cooperatif
p.37
p.38
p.38
p.39
p.40
5.COMPANY ACCOUNTS
AND CONSOLIDATED ACCOUNTS 2008
5.1 Accounting repositories used
5.2 Consolidated accounts 2008
5.3 Ratios and ratings
5.4 Company financial statements 2008
p.74
p.74
p.74
p.76
p.76
6.DISTRIBUTION AND APPROPRIATION
OF EARNINGS
p.81
7. PROSPECTS FOR 2009
p.82
C-CREDIT COOPERATIF
GROUP FINANCIAL STATEMENTS
1.CREDIT COOPERATIF
GROUP FINANCIAL STATEMENTS
p.86
2.CREDIT COOPERATIF COMPANY
FINANCIAL STATEMENTS
p.154
3.STATUTORY AUDITORS’ REPORTS
p.186
DRAFT RESOLUTIONS p.190
CERTIFICATION BY THE PERSONS
RESPONSIBLE FOR THE ANNUAL REPORT
p.192
5
6
CHAIRMAN’S ADDRESS
G
ood level of activity, worldwide environment of
crises, drawing up a Company project to take us
through to 2015: that sums up 2008 for the Crédit
Coopératif Group.
Its activity, which is mainly based on collection of funds,
loans and services, saw general growth in 2008 that
highlights the efficiency of its teams, good client relations
and, a fundamentally sound positioning in line with
the Company’s expectations. Nonetheless, the current
economic difficulties require vigilance on our part, with
increased provisions concerning some clients, changes in
resources and significant growth in investment loans.
As financial operations and investments are in no way
among our core activities, and our fully owned investments
exclude all «toxic» or speculative assets, for the first nine
months of 2008 we thought we would remain unaffected by
the financial crisis, or rather the many successive crises:
crises arising from subprime loans, structured assets, and
loan insurers, and then the banking crisis with the fall of
Lehman Brothers, followed by a stock market crisis and an
economic crisis.
The only setbacks suffered by Crédit Coopératif as a result of
these various crises concern three bank failures, Lehman
Brothers and two Icelandic banks, some of whose bonds
were held by Crédit Coopératif. To that, we must add the very
prudent provisions set aside for risks concerning our
outstanding credits granted in order to face up to the
consequences of the economic situation, which has become
difficult for our clienteles.
The financial crisis has thus led to a fall in our 2008 earnings,
but we consider that there are no prospects of seeing further
future setbacks in the financial field, taking into account the
nature of our portfolios and their management.Crédit
Coopératif has also been closely following the planned links
between the Banque Populaire Group and the Caisses
d’Epargne Group.
Although Crédit Coopératif regrets that its senior
management’s comments were not taken into account more
carefully, as this could have avoided the painful experience
of Natixis, it is not fundamentally opposed to setting up links
between the two groups, provided that their cooperative
nature is fully taken into account and the coming set-up is
based on decentralised cooperative networks.
For the Crédit Coopératif Group, 2008 was also marked by an
exceptional event: drawing up its Coopéraction 2015
Company project and its 2012 medium-term plan. These
projects tie in well with the basic principles that have
underpinned our success over the last ten years, and they
will lead to a cooperative banking group that is even better
suited to the current circumstances, and even more useful in
facing them, than when work began on the projects.
I would like to underline the fact that the work marked a
significant milestone in the constitutive participative
democracy of Crédit Coopératif, in the form of participation
of almost three hundred staff members, member mobilisation
in the Crédit Coopératif Regional Committees and National
Council, and the contributions made by their movements as
members of the Board of Directors, plus of course the
Chairman and the Managing Directors, a team that has now
settled in well.
In a somewhat discouraging economic environment, the
project sets out our position clearly: we must make
a distinction between temporary difficulties and our
determination to provide enhanced services for increasing
numbers of members, and bring life to an economy based on
criteria other than financial speculation. We have to organise
the development necessary to reach this objective. It’s time
to give priority to the real economy, that we finance as our
vocation and as a matter of choice, and to patient finance
that reflects life’s rhythms; the current situation lead us to
believe, without pretentiousness but with conviction, that
we are right in doing so.
Jean-Claude DETILLEUX
Chairman Credit Cooperatif Group
7
The Crédit Coopératif Group
S
et up thanks to the efforts of Crédit Coopératif and the
movements that make it up, the Crédit Coopératif Group
federates subsidiaries and banking and financial
establishments and organises their financial solidarity. Led
by Crédit Coopératif, the Group provides its selected clienteles and
their federating organisations with the means to build efficient
shared solutions and apply them in a triangular relationship. In
the Banque Populaire Group, it acts as a centre of expertise, in
particular for the social and citizen economy and in the field of
cooperative practices. Its ambition is to provide increasingly useful
services to enhance its members’ and clients’ powers of action.
HistoryThe origins of Crédit Coopératif go back to the late 19th century,
when cooperatives set up their own bank. Since then, it has
regularly developed its activities, clienteles, and network, while
remaining true to its initial vocation.
Crédit Coopératif as it now exists results from the merger, in 2003,
of the Crédit Coopératif bank, the descendant of the cooperative
bank set up by workers’ production associations in 1893, and the
Caisse Centrale de Crédit Coopératif, set up in 1938 to finance
investments by production and consumption cooperatives.
These establishments set up links in 1970 to form a complete
banking group with a national network that meets all the banking
requirements of their members, most of whom are legal entities.
The Group has also seen development through external growth
operations, taking over the activities of GMF Banque (1994), BTP
Banque (1996), Banque Pommier Finindus, Banque du Dôme and
Banque de l’Entreprise (1998).
Since 2003, Crédit Coopératif has assumed the status of a société
anonyme coopérative de banque populaire à capital variable
[variable-capital people’s-bank cooperative public limited
company]. With an interest in the capital of the Banque Fédérale
des Banques Populaires, it is one of the parent companies of the
Banque Populaire Group, to which it is linked by an agreement
that guarantees its management independence, its identity and its
brand image. Within the terms of the monetary and financial
code, it is affiliated to the Banque Fédérale des Banques Populaires,
which ensures its liquidity and solvability. It benefits from that
bank’s notation.
A group with a human faceThe Crédit Coopératif Group is organized around a cooperative
bank, Crédit Coopératif. It is made up of two national banking
networks, Crédit Coopératif and BTP Banque, a subsidiary
dedicated to businesses and institutions in the building and civilengineering trades, and companies specialised by business line,
8
such as the Ecofi Investissements asset-management company
and Batilease for financial leasing.
The Crédit Coopératif Group also includes several institutions that
have signed an association agreement with it. They are mainly
financial tools managed, or even set up, with movements that
federate clients. Crédit Coopératif ensures their liquidity and
solvability, within the framework of an association contract.
The Group has a hundred or so Crédit Coopératif and BTP Banque
branches located throughout Metropolitan France, often brought
together in a shared sales outlet, plus a distant bank branch
dedicated to private individuals and online banking services. It
combines the advantages of a group with a human face, in which
each client has his or her place, with those of a major banking
group, the Banque Populaire Group. It is thus able to meet the
expectations of its clients and members for their operations in
France and in other countries, whatever their size. It calls on expert
partners to complete its range of services. A pioneer of caring
finance in France and Europe, it is also a bank embodying a bond
of affinity with all who want to give a different meaning to their
banking relationship.
A cooperative bankCrédit Coopératif is a cooperative bank: It is owned by its
clients. Its members, most of whom are customer legal entities,
hold 100% of the Assembly voting rights. They exercise those
rights in accordance with the “one person, one vote” principle.
Crédit Coopératif attaches considerable importance to putting
its cooperative values to good use: through bodies set up to
reach agreement and make decisions, its members are able to
take part in the life of their bank. The presence of movements
and professional federations that represent the members
enables their stakes to be taken into account in these bodies.
A partner bankCrédit Coopératif maintains close links with its members, their
movements and their professional organisations, to set up
triangular relationships such as those that can be seen in the
existence of “associated” establishments. To widen the scope
of its operations, Crédit Coopératif frequently relies on
specialist partners, within the Banque Populaire Group
(employee savings, leasing, factoring, development capital,
etc.), or elsewhere, for venture and development capital
(Esfin-Ides Group, etc.), insurance (Azur GMF, Mutavie, etc.),
or for development of the social and citizen economy (Caisse
des Dépôts, Chèque Déjeuner Group, etc.), to mention just a
few examples.
Select clientelesA bank for cooperatives, companies,
and their joint ventures
Crédit Coopératif is the bank of many companies, cooperatives
and their members, joint ventures between SMEs and SMIs,
artisans, etc. They have a very wide range of activities in industry
and services, the building trade, civil engineering, mass retailing,
corner stores, maritime activities, fair trading, renewable energy
sources, social entrepreneurship, etc. Many of the firms are part
of the local economic structure, belong to networks, integrate
logics stemming from their branches of activity, and implement
inter-cooperative partnerships that the Crédit Coopératif Group
supports. With their professional organisations and their
movements, they set up partnerships with structures that are
dedicated to them, and especially financial establishments.
Crédit Coopératif and BTP Banque alike use their knowledge and
their immersion in professional circles to provide suitable
responses.
A bank for associations and organisations
in the public interest
For almost 40 years, Crédit Coopératif has been a reference
bank for organisations and services whose activities are in
the public interest (SIGs in French). Associations large and
small, mutual societies, social organisations managing
housing, local public companies, or even classic joint stock
companies in some cases, their wide ranges of activities are
essential for a balanced society: health, social actions, social
and deeply social housing, education, integration,
international solidarity, culture, environment, welfare, sport,
denominational organisations, micro-credit, etc. Crédit
Coopératif develops products and services that correspond
to their specific economic, legal and fiscal aspects with
widely recognised expertise, backed up by its close links with
its members and their movements.
A bank for “special” private individuals
Like all other banks, Crédit Coopératif provides a full range of
banking services, investments and financing for private
individuals. Managing their accounts, saving up, investing,
taking out loans, obtaining advice… each client has all the
means necessary to maintain his or her banking relations,
but with one difference: almost all the services are also
accessible in socially responsible versions (current accounts,
bank cards, savings accounts, UCITS, etc.). By subscribing
shares that are dedicated to them, private individuals can opt
to provide Crédit Coopératif with extra resources to develop
its activities.
A bank with commitmentsAs an extension to the partnerships with its client members,
Crédit Coopératif is committed to promoting their specific
aspects and those of the socially responsible economy. The
Fondation Crédit Coopératif is a major instrument in this
long-term undertaking. For over 20 years, it has multiplied
innovative actions, using resources that have regularly been
added to. The Crédit Coopératif Group is also present in many
joint organisations representing the socially responsible
economy, at regional, national and international levels.
A bank for socially responsible financing
Crédit Coopératif is a pioneer in socially responsible financing.
A pioneer because twenty-five years ago, it launched the first
shared investment scheme, Hunger and Development. A
pioneer because it accompanied creation of a network of
savings and credit cooperatives in Mali 20 years ago. And
once again a pioneer today, thanks to the breadth of its range
and its ability to innovate, in France and elsewhere in Europe,
in the following fields:
• Socially responsible savings and investment, for the benefit
of organisations involved in solidarity actions;
• Promotion and guarantees for socially responsible credit,
to enables very small associations or disadvantaged people to
gain access to credit;
• Accompanying specialised actors, through technical and
financial backing, in particular via the European Federation of
ethical and alternative banks (FEBEA). Crédit Coopératif puts
its expertise at the service of actors in socially responsible
finance and designs tools with them to ensure their growth
and their long-term existence.
An actor promoting sustainable development
For Crédit Coopératif, sustainable development, with its three
pillars – social, economic and environmental – is much more
than a passing fad. It is by nature that it shares, with all the
enterprises in the socially responsible economy, a responsible,
long-term view of the economy, due to the fact that it cannot
share its reserves. Cooperative is an ambitious project built
around economic and social solidarity, in which criteria other
than maximum returns are taken into consideration: quality
of service, public interest, added social value, and more
generally social responsibility… It is not by chance that Crédit
Coopératif is close to social enterprises, that it is the number
one bank for social integration concerns, that it is so strongly
present alongside associations of disabled people or joint
ventures among enterprises, and that it is a pioneer in socially
responsible finance.
9
Organisation
of the Crédit Coopératif Group
SIMPLIFIED ORGANISATION CHART FOR THE CREDIT COOPERATIF GROUP
members
Banque Fédérale
des Banques Populaires
Crédit Coopératif
SUBSIDIARIES
PARTNER INSTITUTIONS
BTP Banque
Ecofi Investissements
Bank
Banque Edel
BTP Capital Conseil
BTP Capital Investissement
Tise
Crédit Bail Immobilier
Inter-Coop
Intercop Location
Bati Lease
Financial lending
companies
Caisse Solidaire
Société financière de la Nef
Gedex Distribution
SOCOREC
Companies providing
guarantees
CMGM
Nord Financement
Sofigard
Sofindi
Sofirif
Sofiscop
Sofiscop Sud-Est
Somudimec
Somupaca
MAIN PARTICIPATIONS
ON A PARTNERSHIP BASIS
Development capital
Banque Populaire Développement
COOPEST
Croissance Nord-Pas de Calais
Groupe Esfin-Ides
IRD Nord-Pas de Calais
Rhône Dauphiné Développement
SOCODEN
SOFINEI
TRANSMEA
Personal services
Chèque Domicile
Social housing
FINANTOIT
Consulting, insurance
AMOS ET Compagnie
CGI BâTIMENT
Socially responsible finance
SIFA
SIDI
SEFEA
France Active Garantie
Sustainable Development
Enercoop
Asset management
CAP WEST
COGITAM
Europe
Eurecos
Kreditimi Rural i Kosovoes
The establishments shown in this simplified organisation chart are presented opposite and in the “Group Architecture” section
on page 53
10
Banque Fédérale des Banques Populaires:
with a holding in BFBP, together with the
other banques populaires, Crédit Coopératif
is a parent company in the Group.
SUBSIDIARIES
BTP Banque : A bank for entrepreneurs and
institutions in building and civil engineering
Ecofi Investissements: Asset management
Company
BTP Capital Conseil: Consultancy for transfers
of building and civil engineering firms
BTP Capital Investissement : development
capital company for building and civil
engineering firms
TISE: development capital company in socially
responsible firms in Poland
Inter-Coop: real estate finance leasing company
Intercop Location: hire company
(ex Sicomi Coop)
Bati Lease: real estate finance leasing company
PARTNER INSTITUTIONS
Bank
Banque Edel: bank held and managed with
the E. Leclerc movement
Financial lending companies
Caisse Solidaire: Cooperative institution
providing socially responsible credit (NordPas-de-Calais).
Société financière de la NEF: Cooperative
financial company, solidaire.
Gedex Distribution: credit institution created
by the Gedex retailers’ cooperative.
SOCOREC: cooperative financial company
managed by groups of independent tradesmen
Companies providing guarantees
CMGM: mutual cooperative guarantee
company, financial tool of industrial
federations and professional associations
Nord Financement: financial cooperative for
SME/SMIs in the Nord Pas-de-Calais department
Sofigard: a financial cooperative for SME/
SMIs in the Gard department.
Sofindi: a financial cooperative for SME/SMIs
in the Poitou-Charentes region
Sofirif: a financial cooperative forSME/SMIs
in the Île-de-France region
Sofiscop: a financial cooperative company
and a tool for the SCOP movement throughout France (except in the south-east)
Sofiscop Sud-Est: a financial cooperative
company and a tool for the SCOP movement
in south-east France
Somudimec: mutual cooperative guarantee
company for SMIs, a financial tool of industrial
federations in the Rhône-Alpes and Bourgogne
regions Auvergne and Franche-Comté regions
Somupaca: a financial cooperative for SME/
SMIs in the Provence-Alpes-Côte d’Azur region
MAIN PARTICIPATIONS
ON A PARTNERSHIP BASIS Development capital
Banque Populaire Développement: development
capital company for non-listed companies.
COOPEST: financial tool dedicated to financing
socially responsible firms in Eastern Europe
Croissance Nord-Pas de Calais: development
capital company for non-listed SMEs in the
Nord-Pas-de-Calais department
Esfin-Ides Group: development capital
company for firms in the socially responsible
economy and SME-SMIs in all sectors, set up
by players in the socially responsible economy
IRD Nord-Pas de Calais: development
capital company set up to accompany firms
in the Nord-Pas-de-Calais department
Rhône Dauphiné Développement: development capital company with a local vocation
SOCODEN: a financial cooperative company
linked to the SCOP movement
SOFINEI: Socially responsible financing
company for development of firms in the integration sector
TRANSMEA: development capital company
dedicated to staff buyouts of businesses.
Personal services
Chèque Domicile: Chèque Domicile: the biggest
issuer of universal service employment cheques
Social housing
FINANTOIT: joint interest cooperative
company bringing together players in
first-level social housing, approved as
a socially responsible firm
Consulting, insurance
AMOS ET Compagnie: Consulting and
engineering firm for the Mutual
Companies in the Code de la Mutualité
CGI BÂTIMENT: Guarantee insurance
company working closely with the FFB
Socially responsible finance
SIFA: France Active’s socially responsible investment company providing employment
backing for people undergoing integration
SIDI: company specialised in providing
financial and technical support for local
financing structures outside France
SEFEA: a cooperative company promoting
socially responsible finance in Europe
France Active Garantie: financial company
providing guarantees as part of the work to
create activities to combat exclusion
Sustainable Development
Enercoop: joint interest cooperative
company supplying electricity from
renewable energy sources
Asset management
CAP WEST: management company specialised in managing international shares
COGITAM: management company specialised
in alternative management
Europe
Eurecos: real estate company set up to
accompany growth in the Catalan socially
responsible economy
Kreditimi Rural i Kosovoes: Kosovo microfinance institution for the rural economy.
11
Crédit Coopératif
in the Banque
Populaire Group
regional banques
populaires and casden bp
Crédit coopératif
97,5 %
20 %
(CCI)
2,01 %
Banque fédérale des Banques populaires
20 %
(CCI)
34,45 %
NATIXIS
C
rédit Coopératif is a cooperative bank that is owned by
its 29,814 members (figure as at 31 December 2008).
The latter are both partners and users, and they are
entitled to attend its general meetings.
Crédit Coopératif is also one of the parent companies of the
Banque Fédérale des Banques Populaires, the federating bank
for the French people’s banks, in which it holds 2.01% of the
capital.
Mr. Jean-Claude Detilleux, Chairman of Crédit Coopératif, sits
on the Board of Directors of the Banque Fédérale des Banques
Populaires, as a Director.
Within the terms of the monetary and financial code, Crédit
Coopératif is affiliated to the Banque Fédérale des Banques
Populaires, which ensures its liquidity and solvability, through
its mission as the central body.
Crédit Coopératif has a specific role in the Banque Populaire
12
Group. Within the group, it has a specific status, governed by a
protocol. The latter states in particular that Crédit Coopératif, its
subsidiaries and the entities linked to it:
- Keep their own names, commercial names, brands and
identities, together with their specific aspects and their clientele,
their management autonomy, their freedom to enter into
commitments and their internal operating and financial rules;
- Are considered, in the Banque Populaire Group, as reference
institutions for the socially responsible economy.
Natixis, a listed company owned jointly by the Banque Populaire
Group and the Caisse d’Epargne Group, has a 20% holding in
the capital of Crédit Coopératif in the form of cooperative
certificates of investment (CCI), securities without voting rights
whose characteristics are set out in the French law n°47-1775
of 10 September 1947 giving cooperation its legal status, as
modified by the French law n°87-416 of 17 June 1987.
Organisation
of cooperative life
members
23 general section meeting
ordinary general meeting of delegates
representing the members
credit cooperatif board
of directors
Cooperative life is based on members. They attend general
meetings at national and regional levels, and appoint their
representatives, who sit on the Crédit Coopératif Board of
Directors.
General meetings
At a regional level, the members attend section meetings and vote
on matters on the agenda. In particular, they vote on:
- Allocation of the results for the financial year,
- Interest on members’ shares,
- The composition of the Board of Directors, whose members they
elect.
At a national level, each section meeting appoints a delegate who
takes part in the Ordinary General Meeting of Delegates, during
which the resolutions are adopted by adding up the local votes.
The board of directors
The Board of Directors is made up of representatives elected by
the members during the general meetings.
The Conseil National du Crédit Coopératif (cncc - credit cooperatif national council)
members, associated partners
branch committee
branch committee
branch committee
regional commitee
regional commitee
national client
federations
branch committee
chairmens’
conference
associated
institutions
cncc
general meeting
CNCC executive
committee
Apart from the Board of Directors, Crédit Coopératif has set
up a consultative structure that brings together more than
450 volunteer representatives of the members, at all the
levels of banking life:
- At a local level, the members’ representatives attend branch
meetings, whose main purpose is to supervise the quality of the
offer and relations between Crédit Coopératif and its members.
- At a regional level, the members’ representatives attend
Regional committee meetings. They pool their knowledge
of their respective sectors of activity, and help to shape the
regional aspects and organise regional general meetings.
- At a national level, the General Meeting of the Conseil
National du Crédit Coopératif brings together the Chairmen
of the regional committees, the representatives of the
national Crédit Coopératif federations and representatives
of the credit institutions associated with Crédit Coopératif.
This consultative structure, which advises the Board of
Directors, provides a platform for expressing the clients’
requirements and a precious source of information on
Group guidelines and the challenges facing the Group.
13
GOVERNANCE
Board of Directors
DIRECTORSJean-Claude DETILLEUX,
Chairman of the Board of Directors
Jean-Louis BANCEL, Vice-Chairman
Caisse Mutuelle de Garantie des Industries
Mécaniques et Transformatrices des
Métaux (CMGM – Mechanical and metalprocessing industries’ mutual-guarantee
fund) Vice-Chairman of the Board of
Directors
Martine CLEMENT
Fédération Nationale de la Mutualité
Française (FNMF – French mutual
societies’ national federation) ViceChairman of the Board of Directors
Daniel LENOIR
Union Nationale des Associations de
Parents, de Personnes Handicapées
Mentales et de leurs Amis (UNAPEI
– national union of associations of
mentally-handicapped persons, their
parents and friends) Vice-Chairman of
the Board of Directors
Jean GABAIN
Conseil National du Crédit Coopératif
(CNCC – Crédit Coopératif national
council)
Philippe ANTOINE
Fédération des Enseignes du
Commerce Associé(FCA) – retail
traders’ association
Guy LECLERC
Confédération Générale des SCOP
(employee-shareholding cooperatives’
confederation)
Patrick LENANCKER
Fédération Nationale des Coopératives
de Consommateurs (FNCC – national
federation of consumers’ cooperatives)
Nadia DEHORS
Association ANCF-CEC
Gilbert HENNIQUE
Union Sociale pour l’Habitat (housing
social union)
Michel AMZALLAG
Union Nationale Interfédérale
des Oeuvres et Organismes Privés,
Sanitaires et Sociaux (UNIOPSS –
national interfederal union of private
health and welfare organisations)
Hubert ALLIER
Fédération Nationale des Sociétés
Coopératives d’HLM (FNSC D’HLM –
14
National federation of cooperative
social housing societies)
Daniel CHABOD
Ligue de l’Enseignement (educational
league)
Jean-Marc ROIRANT
Fédération Française du Bâtiment (FFB
– French building trades association)
Gabrielle DELONCLE
Interprofessionnelle (FNMI – national
federation
of interprofessional mutual societies)
Maurice RONAT
Garantie Mutuelle des Fonctionnaires
(GMF – public employees’ mutual
guarantee institution)
Jean FLEURY
Union Nationale des Associations
de Tourisme et de Plein Air (UNAT
– national union of associations for
tourism and open-air activities) And
Jean-Marc MIGNON
DIRECTORS ELECTEDBY THE EMPLOYEESCharles DELANNOY
Marc GIRAUD
Françoise GIRMA-ROMEYER
Bernard LEURIDANT
EXTERNAL
CORPORATE OBSERVERSSociété Coopérative d’Entraide-Fonds
d’Expansion Confédéral (SOCODENFEC – cooperative mutual-aid society
– confederal economic-development
fund)
Jacques LANDRIOT
Mutuelle des Agents des Impôts
(MAI – tax employees’ mutual health
insurance society)
Jean-Claude NERISSON
Union Nationale des Associations de
Soins et Services à Domicile (UNA
– national union of home help and
home care associations)
Bruno de LA SOUDIERE
Fédération Française des Coopératives et
Groupements d’Artisans (FFCGA – French
trade association of self-employed and
small-business cooperatives and groups)
Hubert LIBOTTE
Association UCEL
Jean DUPUIS
Société Centrale de Crédit Maritime
Mutuel (SCCMM – central shipowners’
credit society)
Michel GIBLAINE
Société Coopérative pour la Rénovation
et l’Equipement du Commerce (SOCOREC
– cooperative society for retailers’
renovation and capital investment)
Hervé AFFRET
ESFIN
François SOULAGE
Confédération de la Coopération, de
la Mutualité et du Crédit Maritimes
(CCMCM – Shipowners’ cooperative
financial confederation)
Gérald EVIN
Société Financière de la NEF (NEF
financial society)
Philippe LECONTE
council)
Jean-Marie MIRAMON
“C” shareholders’ representative
Claude AUDOUIT
“C” shareholders’ representative
Michel VALLADE
The following persons are
also entitled to attend
meetings of the board of
directors:
WORKS COUNCIL
REPRESENTATIVEAlain PIERRE
STATUTORY-AUDITORSIncumbent
KPMG AUDIT
SOFIDEEC « BAKER TILLY »
Alternate
Pascal BROUARD
Christian LAIRY
*until 13 November 2008
Executive officers
of the Board of Directors
Chairman
Jean-Louis BANCEL
Delegate Deputy Chairman
Caisse Mutuelle de Garantie
des Industries Mécaniques et
Transformatrices des Métaux (CMGM
- Mechanical and metal-processing
industries’ mutual-guarantee fund)
Martine CLÉMENT, Vice Chairwoman
Française (FNMF – National
federation of the French mutual
insurance society)
Daniel LENOIR, Vice-Chairman
de Parents, de personnes handicapées
mentales et de leurs amis (UNAPEI
– national union of associations of
mentally-handicapped persons, their
parents and friends)
Jean GABAIN, Vice-Chairman
Conseil National du Crédit
Coopératif (CNCC – Crédit
Coopératif national council)
Philippe ANTOINE, Secretary
ECRUTEMENT
15
GOVERNANCE
Specialised Committees
reporting to the Board of Directors
A summary of the work done by these specialised committees during the 2008 financial year is to be found on page 25
of the present report.
AUDIT COMMITTEEJean-Louis BANCEL
Committee Chairman
Société Coopérative pour
la Rénovation et l’Equipement
du Commerce (SOCOREC –
cooperative society for retailers’
renovation and capital investment)
Hervé AFFRET
Fédération Nationale
des Coopératives de Consommateurs
(FNCC – national federation
of consumers’ cooperatives)
Nadia DEHORS
Charles DELANNOY
Director elected by the employees
UCEL association
Jean DUPUIS
de Parents, de personnes
handicapées mentales et de leurs
amis (UNAPEI – national union
of associations of mentallyhandicapped persons, their parents
and friends)
Jean GABAIN
Gilbert HENNIQUE
16
RISK COMMITTEE-
REMUNERATION
AND RECRUITMENT
COMMITTEE-
council)
Philippe ANTOINE, Deputy Chairman –
Committee chairman
Committee Chairman
Jean-Louis BANCEL
Jean-Louis BANCEL
Fédération Nationale des Sociétés
Coopératives d’HLM (FNSC D’HLM
– national federation of cooperative
low-income housing boards)
(Daniel CHABOD)
Caisse Mutuelle de Garantie
des Industries Mécaniques et
Transformatrices des Métaux (CMGM
- Mechanical and metal-processing
industries’ mutual-guarantee fund)
Martine CLEMENT
Fédération Nationale
des Coopératives de Consommateurs
(FNCC – national federation
of consumers’ cooperatives)
Nadia DEHORS
de Parents, de personnes
handicapées mentales et de leurs
amis (UNAPEI – national union
of associations of mentallyhandicapped persons, their parents
and friends)
Jean GABAIN
UCEL association
Jean DUPUIS
Conseil National du Crédit
Coopératif
Philippe ANTOINE
Gilbert HENNIQUE
Gilbert HENNIQUE
BERNARD LEURIDANT
Director elected by the employees
Michel Vallade
Representative of the holders
of “C” shares
Executive bodies
The General Management s made up of a General Manager, Philippe Jewtoukoff, and three delegate general managers.
The Strategic steering committee, under the Chairman’s responsibility, sets the strategic orientations of the Crédit Coopératif
Group and handles relations with the members and partners.
The General Management is backed up by a Management committee, under the General Manager’s responsibility, which deals
with operational aspects of Crédit Coopératif’s activities.
GENERAL MANAGEMENTPhilippe Jewtoukoff
General Manager
Bernard Labrousse
Delegate General Manager dealing
with operations
Hugues Sibille
with partnerships
Pierre Valentin
with finance
STEERING COMMITTEEJean-Claude DEtilleux
Chairman
Jean-Louis Bancel
Vice-Chairman
Claude LAVISSE
Chairman of the Executive Board
of BTP Banque
The members of the Management
Committee
MANAGEMENT
COMMITTEEPhilippe Jewtoukoff
General Manager
Bernard Labrousse
Delegate General Manager
dealing with operations
Hugues Sibille
dealing with partnerships
Pierre Valentin
dealing with finance
Nicole Alix
Director of Long-term Strategy,
Cooperative Life and Communication
Jean-Didier Auroy
Human Resources Manager
Christophe Couturier
Director General
of ’Ecofi-Investissements
Sylviane Grison
Accounts Manager
and Management Controller
Benoît Tardy
Technologies and Production Manager
Alain TRUTIE De Vaucresson*
Special Security Adviser
Secretariat carried out by:
Nicolas Chaigneau
General Secretary
*until 30 June 2008
17
Key figures
at 31 December 2008
CREDIT COOPERATIF FIGURES
Number
Number
Number
Number
of
of
of
of
branches
staff members
members
clients
2008
2007
69
1,905
29,814
298,900
69
1,810
31,326
269,989
CREDIT COOPERATIF GROUP ACTIVITIES
In billions of euros
Customer loans outstanding
Client deposits outstanding
UCITS loans
2008
2007
7.29
7.63
7.98
6.37
7.24
8.03
(1) Staff in the Crédit Coopératif UES, made up of Crédit Coopératif, BTP Banque and Ecofi Investissements.
18
SIMPLIFIED BALANCE SHEET FOR THE CREDIT COOPERATIF GROUP
Assets
2008
2007
Interbank operations 3.96
and securities portfolio
Customer loans
7.29
Miscellaneous
0.32
Securities held as 0.13 long-term investments
Total
11.70
4.36
6.37 0.45 0.13 11.31
Liabilities
in billions of euros
2008
2007
Interbank operations
2.34
and bonds issued
Customer deposits
7.63
Miscellaneous
0.58
Equity capital
1.15
2.26
Total
11.70
7.24
0.60
1.21
11.31
CREDIT COOPERATIF GROUP EARNINGS
In millions of euros
Net banking income General expenses
Gross operating profit
Cost of risk
Gains and losses on other assets
Corporation tax
Net income – Group share
2008
2007
Changes
375.3
- 254.3
121.0
- 88.0
0.2
- 8.0
22.2
345.7
- 246.8
98.8
- 30.5
47.7
- 26.6 87.8 8.5 %
3.0 %
22.4 %
188.5 %
Not significant
- 69.9 %
- 74.7 %
2008
Operating ratio
The Banque Populaire Group
67.77 %
2007
71.41 %
at 31 December 2008
Key figures
2008
2007
Net banking income (in millions of euros)
Gross operating surplus (in millions of euros)
Net income – Group share (in millions of euros)
Loans outstanding (other than pensions)* (in millions of euros)
Savings assets managed outstanding* (in millions of euros)
Equity capital (in millions of euros)
Tier one ratio
7,296
968
- 468
139.2
182.4
17.7
9.3 %
7,445
1,537
1,055
122.7
167.9
20.2
9.4 %
* Not including Natixis or BFBP subsidiaries.
19
20
Annual Report 2008
Chairman’s report
on the proceedings
of the board of directors
and internal control
procedures
In accordance with Article L.225-37 of French Commercial
Code, the Chairman of the Crédit Coopératif Board of
Directors submits this report on:
- The manner in which the proceedings of the Board of
Directors were prepared and organised,
- The internal control procedures implemented within Crédit
Coopératif, The internal control procedures implemented
within Crédit Coopératif,
- Any limitations implemented by the Board of Directors on
the remit of the General Manager.
The majority of Crédit Coopératif share capital is held by the
different families making up the social economy: the mutual
societies, cooperatives and non-profit-making associations,
together with a diversified class of customers featuring,
among others, small and medium-sized businesses. The
composition of the Board of Directors takes account of
these different sectors of activity.
Drawn up within this framework, this report was prepared
with the assistance of those responsible for Compliance,
Permanent Controls and the Board of Director’s secretariat.
It was presented to the Audit and Risks Committee on
4 March 2009 and the Board of Directors of Crédit Coopératif
on 12 March 2009.
21
1. Manner in which the
proceedings of the board
of directors were prepared
and organised
T
he Crédit Coopératif Board of Directors operates in
compliance with the principles of corporate governance
set out in the rules of procedure for the Board of
Directors and the articles of association adopted on
30 January 2003 and modified on 30 June 2003, 25 May
2005 and 15 November 2006.
On the basis of these principles and its political environment,
Crédit Coopératif strives to implement not only proper corporate
governance, but also and more specifically, cooperative
governance for the benefit of its clients and members, in
accordance with an active policy of promoting membership.
Crédit Coopératif’s Corporate Governance Charter, adopted by the
Board of Directors on 15 September 2005, outlines the operating
principles and conditions of Crédit Coopératif’s decision-making
bodies, as regards transparency, effectiveness and cohesion. This
governance charter is available on Crédit Coopératif’s Website:
1.1 Composition of the Board of Directors1.1.1 Directors
The Board of Directors is composed of: 18 directors (16 legal
entities and 2 individuals: Messrs. Jean-Claude Detilleux and
Jean-Louis Bancel), appointed by the General Meeting of
members, for a term of six years. The directors who are legal
entities principally represent the movements and professional
federations bringing together the members of Crédit Coopératif.
The Ordinary General Meeting of 22 May 2008 renewed for
a further 6-year period the terms of office as directors of:
• Jean-Claude DETILLEUX ;
• l’UNAPEI (represented by Jean GABAIN) ;
• l’UNIOPSS (represented by Hubert ALLIER) ;
• CNCC (represented by Philippe ANTOINE).
The Board of Directors renewed the following terms of office
for a further 3-year period:
• Vice-Chairman of the Board of Directors:
UNAPEI, represented by Jean Gabain ;
• Chairman of the Risks committee:
CNCC, represented by Philippe Antoine ;
• Secretary of the Board of Directors
CNCC, represented by Philippe Antoine.
The chief qualities expected of a director are business
22
experience, personal commitment to the proceedings of the
Board, an understanding of the business and financial world,
the ability to work together while respecting each other’s
opinions, the courage to speak up even when in a minority,
a sense of responsibility to member shareholders and other
interested parties, and integrity.
In order to be a member of the Board of Directors, there
needs to be undisputed credit and ownership of at least one
share in Crédit Coopératif. A person who is aged 68 or more
may not be appointed as a director for the first time. The
number of directors above the age of 68 may not be more
than a third of the number of directors in office.
The terms of office of directors come to an end at the close
of the Ordinary General Meeting of members convened to
vote upon the financial statements for the past financial
year, held in the year during the course of which the terms
of the aforementioned directors expire. Directors can always
be re-elected.
Crédit Coopératif is a cooperative of which the members are
legal entities. The latter are grouped in federations or
associations. Legal entities nominated for election as
directors at the General Meeting are chosen from the largest
federations or associations, which represent major business
with the bank, with the aim of obtaining balanced
representation of member’s movements.
Each director therefore has an automatic duty to represent the
needs of the movement that appointed him/her even though
he/she should consider himself/herself as the representative of
all members and should conduct himself/herself as such in
performing his/her duties.
1.1.2 External corporate supervisors
Pursuant to article 25 of the Articles of Association, an
unlimited number of external corporate supervisors may be
appointed by the General Meeting or by the Board of Directors,
subject to ratification by the subsequent General Meeting.
The external corporate supervisors may be chosen from the
members or outside the members. They are appointed for a
term of 6 years at most, coming to an end at the close of the
Ordinary General Meeting of members convened to vote upon
the financial statements for the past financial year, held in the
year during the course of which their terms expire. External
corporate supervisors can always be re-elected.
The external corporate supervisors attend meetings of the
Annual Report 2008
Board of Directors in a consultative capacity. The Board of
Directors may remunerate the external corporate supervisors
by making a deduction from the directors’ fees awarded by
the General Meeting to its members.
At 31 December 2008, there were 13 external corporate
supervisors. 11 external corporate supervisors are legal
entities and 2 external corporate supervisors represent the
holders of “C” shares.
1.1.3 Independent directors
Although the “independent director” is the keystone of good
governance as defined in the Vienot and Bouton reports, this
position loses all its meaning within the cooperative societal
model. In effect, the corporate governance of cooperative
companies is organised around a central component,
membership, and on the basis of a fundamental democratic
principle of “one person = one vote”. The originality of the
corporate governance of Crédit Coopératif is reflected in:
- The dual position of the members, who are both
“shareholders” and clients of the bank
- T he implementation of direct and local democracy on various
territorial levels (Regional General Meetings, branch
meetings, regional committee, etc.)
- T he desire to have a Board of Directors that is representative
of the membership.
Therefore, the presence of “independent directors”, in the
traditional sense, is not justified within the Board of Directors
of Crédit Coopératif.
Governance Charter, the following powers:
- It determines the policies or strategies with a view to serving
the needs of members and clients;
- It draws up a list of the company’s officers and their powers,
specifically as regards legal notification information (register
of trade, etc.) and the supervisory authorities (the Federal
Bank, the Banking Commission, etc.)
- It deals with all questions relating to the smooth operation
of the company and holds discussions to settle matters
affecting it;
- It checks implementation of this policy and management of
the company by General Management;
- It checks that these policies or strategies effectively help to meet
the needs of members and clients;
- It checks the risk control policy, finalises the financial statements
and monitors the quality of financial information issued to
members and third parties in the event of a public issue.
The Board of Directors examines possible proposals from
the Conseil National du Crédit Coopératif (Crédit
Coopératif National Council), including the concerns of
regional committees.
The Board of Directors has a duty to examine the policy for
the return on capital and for the distribution of surpluses
and to submit its proposals to the General Meeting. It
monitors the proper circulation of resolutions/decisions
and their comprehension.
1.1.4 Ethical standards
1.2.2 Meetings of the Board of Directors
The Articles of Association state that no member of the Board of
Directors of Crédit Coopératif should lay himself/herself to open to
conflicts of interest in terms of business relations between Crédit
Coopératif and its group and the members or clients he/she
represents.
The ethical standards recommended to members of the Board
of Directors are also detailed in Crédit Coopératif’s Corporate
Governance Charter.
In addition, information on the legislation relating to insider
trading forms the subject of a complete file and was issued to
each member of the Board of Directors during the meeting
held on 25 February 2008.
Moreover, the directors were informed of the legislative
provisions concerning professional secrecy under the terms
of the French law covering modernisation of the economy
(LME). Article L. 533-11 of the French monetary and financial
code (CMF) requires professional secrecy of the members of
the Board of Directors and all persons working for or with a
credit institution.
The Board of Directors meets in response to a written notice
issued by its Chairman, as often as required by the interests
of Crédit Coopératif and not less than six times a year.
The auditors are called to attend the meeting of the Board of
Directors which votes on the annual financial statements as
well as any meeting of the Board of Directors where their
presence is deemed useful
The Federal Delegate of the Banque Fédérale des Banques
Populaires as well as the representative of the Works Council
also attend meetings of the Board of Directors.
In 2008, the Board of Directors met nine times:
- on 6 February at 9.30 a.m. for 4 hours, attended by
17 directors,
- on 12 March at 9.30 a.m. for 4 hours, attended by
14 directors,
- on 22 May at 9.00 a.m. for 2 hours, attended by
11 directors,
- on 22 May at 3.00 p.m. for 2 hours and 6 minutes,
attended by 11 directors,
- on 10 June at 9 a.m. for 4 hours, attended by 16 directors,
- on 29 August at 10.00 a.m. for 3 hours and 20 minutes,
attended by 13 directors.
- on 18 September at 9.30 a.m. for 3 hours and 45 minutes,
attended by 16 directors,
- on 15 October at 9.30 a.m. for 4 hours, attended by
14 directors,
- on 11 December at 9.30 a.m. for 4 hours and 50 minutes,
attended by 15 directors.
1.2 The role and operationof the Board of Directors-
1.2.1 The powers of the Board of Directors
In addition to the power expressly stipulated by law and by
the Articles of Association of Crédit Coopératif, the Board of
Directors has, according to Crédit Coopératif’s Corporate
23
The global attendance rate for meetings of the Board of
Directors is 65%. A quorum was reached at each meeting of
the Board of Directors.
The main items discussed at these Board meetings were as follows:
> Corporate life and internal procedures:
- The 2007 Chairman’s report for Crédit Coopératif,
- Preparation for the General Meeting,
- Examination of the list of current agreements,
- Prior authorisation for agreements identified as regulated,
- The VIECOOP project results,
- Orientations concerning interest on members’ shares for 2008,
- Monitoring relations and the Crédit Coopératif /Banque
Fédérale des Banques Populaires memorandum of agreement,
- Approval of subscriptions and redemptions of members’ shares,
- The new organisation for delegation of powers,
- The activities of the Audit Committee, the Risks Committee
and the Remuneration and Recruitment Committee,
- Changes in the operation of the Board of Directors and in
its composition, together with renewal of terms of office,
- Evaluation of the Board of Directors,
- Payment of interest and rebates for 2008,
- Remuneration of the company’s executive officers and its
senior management,
- The provisional schedule for 2009 for meetings of the
Group’s specialist boards and committees.
> Crédit Coopératif’s strategy and the economic environment:
- Links between BFBP and CNCE,
- Monitoring work on the corporate plan for 2015,
- The Commercial and Communication action plan (PACC 2009),
- Presentation of the activities carried out by the Département
des Opérations Internationales (DIN – International
Operations Department),
- Partnerships in the professional and social micro-credit sector,
- Crédit Coopératif and sustainable development.
> Accounts and forecasts:
- Finalising the company and consolidated accounts,
- Forecast activity and earnings for 2009. Updating the 2009/2012
Medium Term forecasts for the Crédit Coopératif Group,
- Performance indicators,
- The Group’s financial statements
> Transfers, acquisition of shares and restructuring
operations:
- Participation in the capital increase of BFBP
- The capital increase of Banque EDEL SNC,
- Crédit Coopératif’s subscription of a block of 5 million
euros in Coopest (debt + capital),
- The planned €2 M Banque EDEL subordinated loan,
- Buyback of TISE, the venture capital subsidiary of BISE.
24
> Banking activities:
- Commitments and risks,
- Implementation of the McDonough ratio,
- Financial operations, issues, borrowings, sundry
investments,
- Authorisation for bond issues,
- Crédit Coopératif and the new European payment system
(SEPA),
- The economic and financial crisis,
- Electronic payments at Crédit Coopératif,
> The Banque Populaire Group:
- Activity and results for the Banque Populaire Group,
- Relations between the Banque Populaire Group and Natixis,
- Relaunch of cooperative life within the Banque Populaire
Group,
- The Contribution of Crédit Coopératif to the life of the
Banque Populaire Group.
1.2.3 Information for the Board of Directors
Annual scheduling of the dates for Board meetings is carried
out sufficiently in advance to guarantee proper and
complete information for directors. For this purpose, a
provisional annual schedule was presented at the meeting on
11 December 2008 for the year 2009.
Board meetings are preceded by the timely issue, in principle
five days in advance, of all documents and information
required to enable members of the Board of Directors to
usefully prepare for meetings.
In addition to the information received, each director may
request any documents he/she believes are necessary
to perform his/her duties.
1.3 The manner in whichThe proceedings of the Board
of Directors are preparedThe Chairman finalises the documents prepared by the
company’s internal departments, organises and directs the
proceedings of the Board.
He ensures that the directors are able to fulfil their duties,
taking particular pains to ensure that they have access to the
necessary information and documents in good time.
Lastly, he ensures that representatives of the staff
representation bodies are duly notified of the meetings.
1.3.1 The Officers of the Board of Directors
The Officers of the Board of Directors have the task of setting
up a group to discuss the strategy of Crédit Coopératif and
its implementation. Officers can therefore put forward
suggestions to the Board. In addition, they ensure the
smooth running of the various specialised committees set
up by the Board.
This body currently consists of the Chairman, the Deputy
Vice-Chairman, the Vice-Chairmen representing the major
client sectors and a Secretary.
The General Manager, Philippe JEWTOUKOFF, Hugues SIBILLE,
Annual Report 2008
Deputy Assistant Director in charge of Partnerships and
Nicole ALIX, Director of strategic prospects, cooperative life
and communication also attend meetings of the Officers of
the Board of Directors.
The Officers of the Board met nine times in 2008: on 23
January, 6 March, 8 April, 9 June, 8 July, 11 September,
13 October, 26 November and finally on 10 December, for an
average of 2 hours.
The composition of the Board of Directors and the Officers,
current events concerning Crédit Coopératif Group and the
Banque Populaire Group, the VIECOOP project, the corporate
plan and the Plan Moyen Terme (PMT- medium Term Plan),
changes in the Crédit Coopératif governance charter and the
Board of Directors, as well as relations between Crédit
Coopératif, the Banque Populaire Group and associated
institutions, were discussed during the course of these
meetings.
The Officers also covered the question of evaluating
operation of the Board of Directors.
1.3.2 The specialist committees of the Board
of Directors
The proceedings of the Board of Directors are supported by
specialist committees which were set up to promote better
corporate governance.
> The Audit Committee
This Committee is chaired by the Deputy Vice-Chairman:
Jean-Louis BANCEL.
It is made up of Jean-Claude DETILLEUX, Chairman of Crédit
Coopératif
- The ANCF/CEC association, represented by Gilbert HENNIQUE;
- The UCEL association, represented by Jean DUPUIS ;
- Charles DELANNOY, a Director elected by the employees
- The FNCC, represented by Nadia DEHORS ;
- SOCOREC, represented by Hervé AFFRET ;
- L’UNAPEI, represented by Jean GABAIN.
The Audit Committee met five times in 2008:
- On 24 January for 3 hours,
- On 6 March for 3 hours,
- On 28 August for 2 hours and 30 minutes,
- On 14 October for 4 hours
- On 27 November for 3 hours and 30 minutes, in a joint
session with the Risk Committee.
The Committee specifically examined:
- The economic and financial crisis,
- Counterparty risk monitoring,
- The global interest-rate and liquidity risk,
- The internal limits for own-account management,
- Shareholdings,
- Powers delegated,
-The legal information policy (implementation of the MIF,
annual report and the AMF reference document),
- Switchover to the McDonough system,
- The Group’s financial statements
-Audits: Information concerning the findings made by the
banking committee concerning the internal Crédit
Coopératif audit, and the 2008 audit plan,
- The annual Crédit Coopératif internal-control report,
-Examination of the audit reports.
> The Risks Committee
This Committee is chaired by Philippe ANTOINE, the
permanent representative of CNCC on the Board of Directors
of Crédit Coopératif.
It is made up of
- Jean-Claude DETILLEUX, Chairman of Crédit Coopératif
- The ANCF - CEC association, represented Gilbert HENNIQUE ;
- The UCEL association, represented by Jean DUPUIS ;
- Jean-Louis BANCEL, Delegate Vice-Chairman of Crédit
Coopératif
- The CMGM, represented by Martine CLÉMENT ;
- The FNCC, represented by Nadia DEHORS ;
- Bernard LEURIDANT, a Director elected by the employees
The Risks Committee met four times in 2008:
- on 24 January for 3 hours and 30 minutes,
- on 10 April for 2 hours and 5 minutes,
- on 14 October for 3 hours and 30 minutes,
- on 27 November for 3 hours and 30 minutes, in a joint
session with the Audit Committee.
The Committee specifically examined:
- The financial risks,
- Compliance with internal limits,
- The interest-rate and liquidity risk,
- The consequences of the subprime crisis,
- The credit risk for financial transactions,
- Crédit Coopératif’s Continuity of Activities Plan (PCA),
- The risk provisioning policy,
- The operational risks by analysing the question of their
mapping, that of combating criminality and even
compliance and ethics,
- The risks in terms of credit commitments: list of banks,
financial establishments and companies retained as
counterparties, information on risk premiums, focus on
syndications, the quality of support for directors, reflection
on the home consultation procedure, focus on large
dossiers
> The remuneration and recruitment committee
This Committee is chaired by the Chairman of the Board of
Directors: Jean-Claude DETILLEUX.
It met on 10 December 2008.
The Committee specifically commented on setting the
remuneration for the company’s executive officers.
1.3.3 Training directors
A training session led by Mr. Jean-Louis BANCEL, the Deputy
Vice-Chairman of Crédit Coopératif, was held on
15 September 2008. This training session, primarily designed
for new directors, provided the opportunity to present the
Crédit Coopératif Group’s economic model, working model
and development model in a rapidly changing banking
environment.
25
1.4 Evaluation of the proceedings
of the Board of DirectorsDuring the meeting held on 18 September 2008, the
members of the Board of Directors were given a questionnaire
enabling them to evaluate operation of the Board of
Directors of Crédit Coopératif.
Whilst highlighting the excellent frequency of meetings, the
contents of the dossiers and the good level of information
for directors, they stressed the need to:
- Shorten the agendas,
- Comply with the periods of notice for forwarding the dossiers,
- Send some memos by e-mail,
- Shorten the exposés,
- Set up specific, regular training sessions.
1.5 Powers of the company’s
senior managersOn 25 January 2007, the Board of Directors made the decision
to separate down the responsibilities of the Chairman of the
Board of Directors and the General Manager, from 1 February
2007, and assigned them the following powers:
1.5.1 Powers delegated to the Chairman
- Ensuring smooth performance of auditing activities
- Deciding and supervising implementation of agreements
signed with the Banque Populaire Group
- Supervising and approving all significant shareholdings
and partnership agreements
- Supervising and controlling procedures for the delegation of
power and decision-making, especially by fixing limits for
line management levels depending on the nature of
commitments
- Supervising the policy for the development and protection
of Crédit Coopératif’s activities
- Supervising the powers delegated to Crédit Coopératif in
relation to associated institutions
- Ensuring representation of Crédit Coopératif within
cooperative and social economy organisations.
1.5.2 Powers delegated
to the General Manager
The Board of Directors, having heard read out its Officers’ report
and in response to a proposal from its Chairman, and under those
powers which are conferred on it by the Company’s Articles of
Association and regulations and the powers it can confer on a
director, delegated to Mr. Philippe JEWTOUKOFF the widest
powers in acting in all circumstances on behalf of the Company.
As part of the relevant general rules laid out by the Board of
Directors, and having received the agreement of the Chairman
of the Board of Directors, the latter can further delegate these
powers.
However, at its meeting on 17 June 2005, the Board of Directors
applied the following limits to the remit of the General Manager:
his decision with regard to the granting of loans and guarantees
is limited to requests that do not exceed:
26
- € 5,000,000 for counterparties with a rating of up to 11
(Banques Populaires rating system)
- € 8,000,000 for counterparties with a rating of between
6 and 10
- € 10,000,000 for counterparties with a rating of between
1 and 5 For a global debt not exceeding 5% of Crédit
Coopératif’s equity capital.
For amounts exceeding these limits, decisions are taken by the
General Manager after prior consultation with a Vice-Chairman
and two directors selected on the basis of the sector. To apply
these limits, discount authorisations, authorisations backed by
assignment of receivables (Dailly) and guarantees are considered
at half their amount.
Furthermore, the General Manager decides on shareholdings not
exceeding € 500,000. These powers comprise the option of delegating. Beyond this, the decision is taken by the Board of Directors.
1.6 Principles and rules
used to determine
the remuneration for thecompany’s executive officersThe term of office and remuneration for the company’s
executive officers are set by the Board of Directors of Crédit
Coopératif in response to a proposal from the remuneration
and recruitment committee.
In accordance with the recommendation made by its
remuneration and recruitment committee on 10 December
2008, the Board of Directors of Crédit Coopératif decided
against full application of the recommendations made on 6
October 2008 by the AFEP and MEDEF.
The Crédit Coopératif is not a member of the MEDEF
employers’ association, and its Board of Directors considers
that the recommendations made by the association are not
all suitable for application to the senior management of
Crédit Coopératif.
In particular, the Board of Directors of Crédit Coopératif
finds that the fact of combining employee status with that
of an executive officer does not raise any specific problems
concerning its senior management, to the extent that the
latter have not been granted any “golden parachutes” or
“stock options” issued by Crédit Coopératif.
Furthermore, in 2008 the senior management of Crédit
Coopératif asked not to be granted such stock options as
may be issued by Natixis.
At its meeting on 10 December 2008, and taking into account
the strong levels of activity, the Remuneration and
recruitment committee recommended keeping the fixed
remuneration for the company’s executive officers at the
same levels.
Taking into account the gross operating margin, due to the
necessity of entering provisions concerning financial
management, and to cover the increasing levels of credit risks,
in the light of the solidarity that is bound to exist between the
members of the management team, the Committee
recommended cutting by 20% to 30% the variable remuneration
for the executive officers, as extended to all the members of the
Annual Report 2008
management committee, and paid out in 2009 for the 2008
financial year.
he Remuneration and recruitment committee also suggested
setting the directors’ fees paid to the members of the Board of
Directors at €800 per Board meeting and €400 for the various
Committees, in the knowledge that the salaried executive
officers of Crédit Coopératif are not paid director’s fees.
These proposals put forward by the Remuneration and
recruitment committee were approved by the Board of
Directors of Crédit Coopératif on 11 December 2008..
1.7 The Conseil National du Crédit Coopératif (CNCC – Crédit
Coopératif national council)
The Conseil National du Crédit Coopératif (CNCC) is an association
under the French 1901 law, which brings together representatives of
the members and clients of Crédit Coopératif. It is chaired by Patrick
Lenancker, the Chairman of the Confédération Générale des SCOP.
The Conseil National du Crédit Coopératif unites legal entities
which are members and clients of the Crédit Coopératif Group, on
the one hand, brought together at branch meetings and regional
committees and, on the other hand, representing their national
movements, in order to express their common wishes and
monitor their implementation. These bodies help to inform the
Board of Directors of Crédit Coopératif.
- The branch meeting is the place for expressing clients’ needs, a
stepping-stone in the development of the branch and, where
applicable, a place for putting questions to Crédit Coopératif via
the branch.
- The regional committee is a place for meeting and for exchanges
between members of branch meetings who wish to do so, and
specifically, the representatives of various movements representing
clients. It is charged with expressing clients’ expectations, monitoring
the competition, transmitting items and, possibly, assisting the
directors of branches and general delegates.
- The Conference of the Chairmen of Territorial Committees
is a place for exchanges between Crédit Coopératif and the
regional representatives of its client-members, who use it to
pass on the concerns expressed in branch meetings and
branch committee
branch committee
regional committees. A representative of the regions is
entrusted with presenting a report to the General Meeting of
the Conseil National du Crédit Coopératif on these matters.
- The General Meeting of the Conseil National du Crédit
Coopératif brings together representatives of the various types
of groups of members and clients of the Crédit Coopératif
Group: the Chairmen of Regional Committees in respect of
Territorial Committees (first section) and the representatives of
national movements of members and clients of Crédit Coopératif
(second section). The representatives of partner institutions for
Crédit Coopératif and members of the Board of Directors are
also invited to attend.
- The Officers of the Conseil National du Crédit Coopératif
are elected by the General Meeting of the CNCC for a term of 2
years. It is composed of 4 to 12 members. Any matters relating to
the Group’s policy and its governance may be referred to the
Officers of the CNCC by the Board of Directors of Crédit Coopératif.
A consultative body and a precious source of information on
Group guidelines and the challenges facing the Group, the Conseil
National du Crédit Coopératif is a place for expressing the needs
of members’ movements with regard to their cooperative and a
place for broad exchanges between Crédit Coopératif and the
representatives of its clients, members and partners.
The Conseil National is represented on the Board of Directors of
Crédit Coopératif, which specifically enables it to ensure that
account is taken of the concerns expressed in regional committees.
In 2008, the Conseil National du Crédit Coopératif met twice to
hold Ordinary General Meetings, on 8 April and 25 September
2008. The CNCC Officers met 5 times, on 12 March, 28 May, 25
June, 10 September and 11 December 2008. They examined
mainly the progress made on the corporate plan and the Crédit
Coopératif Group’s brand study, together with definition of a
method associating the local committees and the CNCC with
the corporate plan and quality of client relations.
The terms of office of the CNCC Officers were renewed at the CNCC
General Meeting on 8 April 2008. There are currently 9 of them.
At their meeting on 10 September 2008, the CNCC Officers
elected Patrick Lenancker, President of the General Confederation
of SCOPs, as President of the CNCC, to succeed Maurice Ronat,
President of the National Federation of Interprofessional Mutual
Societies, whose term had expired.
branch committee
regional committee
national client
federations
branch committee
regional committee
chairmens’
conference
associated
institutions
cncc
general meeting
CNCC
executive committee
27
2. Internal
Control procedures
C
rédit Coopératif’s internal control system is defined
in a charter approved by the Audit Committee. This
system ensures coverage of risks, their exhaustive
evaluation and their management, in compliance
with the guidelines laid down by the Board of Directors. It
forms part of the global internal control system implemented
by the Banque Populaire Group and is based on the principles
and benchmark documents approved by the Board of
Directors of the Banque Fédérale des Banques Populaires, of
which the Chairman of the Crédit Coopératif is a director.
This system forms the subject of regular reporting to the
Banque Fédérale des Banques Populaires and is subject to
possible inspections by the latter.
It is organised strictly independently of periodic and
permanent control. The former reports to the Chairman of
Crédit Coopératif and the latter to the General Manager.
A “Compliance” Manager has been appointed, charged with
preventing the risk of non-compliance and of financial
irregularities. He/she is also the Compliance Manager for
Investment Departments.
Crédit Coopératif’s internal control covers all of its
institutions and business units.
2.1. General organisationThe internal control system is based on:
- Modified regulation 97.02 of the Comité de la Règlementation
Bancaire [French banking regulation committee] relating to
internal control of credit institutions and investment
companies,
- The general regulations of the Autorité des Marchés Financiers
(Financial markets authority) for its investment services
activities,
- The charters for the control departments of Banques Populaires,
- Crédit Coopératif’s corporate governance charter,
The organisational memos signed by the Chairman defining
the duties and objectives of the various control
departments,
- Agreements with associated institutions, stipulating the
responsibilities in terms of risk control between the
resources of Crédit Coopératif and those belonging to each
of the institutions.
28
2.1.1 Persons involved in internal control
The internal control system is organised on three levels, the
first two representing permanent control and the third
periodic control.
First level: the control of processes is primarily the
responsibility of each activity. This takes the form of selfinspection carried out prior to or at the same time as the
performance of operations. It is the responsibility of each
employee, within the framework of actions undertaken in the
performance of his/her duties and forms the subject of
ongoing supervision by superiors. It is based on a framework
of procedures made available to staff members via the Crédit
Coopératif Group intranet. Each activity is responsible for
writing its own procedures and the proper application of first
level controls.
Second level: permanent control checks compliance with rules
as well as the existence, permanence and relevance of controls.
It evaluates the level of risk and helps to define risk policy. It is
undertaken by management, reporting directly to the General
Manager. They each have, for their domain, jurisdiction over all
the risks borne by Crédit Coopératif Group establishments:
- For credit risks, Credit Risk Management,
- For market risks and global balance sheet risks, Financial Risk
Management,
- For operational risks and non-compliance risks and the
prevention of financial irregularities, the Continuous Control
Department, which also assumes a coordination role with
the other risk departments and monitoring associated
institutions. It is also linked to the Responsable des Plans de
Continuité d’Activité (RPCA – Head of Continuing Activity
Plans), the Responsable de la Sécurité du Système
d’Information (RSSI – Head of Information System Security),
and the Responsable de la Sécurité des Personnes et des
Biens (RSPB – Head of Security for Persons and Property).
These departments rely on internal control correspondents
within the business units and associated institutions with
which they have an operational link. They report, in their
respective fields, to the risk teams of the Banque Fédérale des
Banques Populaires.
An accounting control position, separate from the accounting
teams, was set up in 2008. Its holder reports to the Director of
Accounts and Management Control.
Annual Report 2008
Third level: periodic control is undertaken by the Internal Audit
Department, which is one of the internal control operators.
Internal audits also form part of the supervision of the global
internal control system. As an independent body, it has jurisdiction
over all the activities of Crédit Coopératif (head office and
branches) as well as over all the structures relating to Crédit
Coopératif (subsidiaries, associated credit institutions – finance
companies providing credit and guarantees and the main
shareholdings on a partnership basis) as well as outsourced
activities.
Internal Audit acts by means of investigations and missions and
has a duty to intervene in all areas within the framework of the
objectives of its mission. As a result, it has free and unlimited
access to information, documents and property. The Presidency
and General Management are also informed of all hindrances in
performing its duties.
The Audit Department works according to rules laid down in its
charter, and applies the professional standards of the Institut de
l’Audit Interne (IFACI) (French Institute of Internal Audit and
Control).
Investigative work is conducted on the basis of a provisional audit
schedule, which is based on activity modelling and risk mapping.
Over the course of the year, the audit schedule may nevertheless
be modified in the light of constraints on performing its duties or
new and urgent requests. This schedule is submitted to the
Chairman and to the Audit Committee and is presented to General
Management.
Each mission results in a joint report, which is issued to those
audited. Once the latter have responded to the recommendations
of Internal Audit, this report takes a definitive form and is issued
to the Chairman, General Management and the heads of the units
in question. On completion of these missions, a plan of action
covering the areas for improvement is finalised and monitored
over time by Internal Audit.
2.1.2 The role of the Board of Directors
The Board of Directors monitors and ensures control of the
main risks incurred by Crédit Coopératif Group institutions
and satisfies itself of the quality and reliability of the internal
control system, in accordance with regulations. It also
examines the report on internal control, which is sent to the
Banking Commission.
The Board has set up two Committees - the Audit Committee
and Risk Committee, which deal, respectively, with issues
relating to the quality of the system for controlling risks and
the risk situation. The Audit Committee examines the annual
accounts, for each company and consolidated, the main risk
monitoring information, the results of internal control and the
main conclusions of audits. The Risk Committee operates at
the level of the various risks identified by the internal control
procedure: credit risks, market risks, operational risks and
compliance, cases in dispute and cases exhibiting particular
risks and requiring provisioning. Its meetings are attended by
General Management, members of the Board of Directors, the
statutory auditors and managers of the risk control
departments.
2.1.3 Persons involved in external control
Crédit Coopératif’s statutory auditors have the permanent,
independent mission of verifying the Company’s accounting
figures and documents, of checking the compliance of
accounts with current rules, and of checking consistency with
the annual financial statements and the truth and fairness of
the information provided in the management report by the
Board of Directors.
At the General Meeting convened to vote upon the financial
statements for the financial year 2006, the auditors’ appointment
was renewed for a term of six years. Independent of the auditors, Crédit Coopératif is specifically
subject to control by the Banque Fédérale des Banques Populaires,
in its position as the central body, and that of the regulators.
In 2008, two audits were expedited by the General Inspection
Department of the Banque Fédérale des Banques Populaires and
carried out by Crédit Coopératif’s Internal Audit Department. The
first audit covered the Banques Populaires contribution to the
Group’s consolidated accounts. The conclusions of that audit
formed the subject of a presentation to the Audit Committee. On
the other hand, the second audit, concerning monitoring of an
audit covering the Basel II – credit risk homologation process, has
not yet been presented to the Audit Committee, because it had
not been completed as at 31 December 2008.
2.2. Risk monitoring and controlThe activities of the Crédit Coopératif Group expose it to five
major categories of risk:
- Credit risks,
- Financial risks,
- Global balance sheet management risks,
- Operating risks,
- Non-compliance risks.
2.2.1 Credit risks
The reform of the solvency ratio – Basel II ratio – has led Crédit
Coopératif to organise its monitoring in order to respond to
regulatory requirements, in particular as regards credit risks.
Conducted in close collaboration with the teams of the Banque
Fédérale des Banques Populaires, it forms part of a uniform
approach developed for the Banque Populaire Group. It is reflected
in the operational deployment of a new range of tools for evaluating
commitments and managing alarms and by the general application
of the Basel II rating system to almost all clients.
> Analysis
Loan files are analysed by the Commitments Department on the
basis of formally enacted and defined procedures and channels
of referral. The relevant studies are developed on the basis of
analytical spreadsheets into which is entered the accounting
and financial information required to assess client quality and
gathered by the sales/marketing teams by conducting interviews
with their clients. This approach is supplemented by external
information (Banque de France, Commercial Court Registries)
and internal (information/summaries of the client relationship
produced by the management system, ratings, etc.).
29
The specific nature of Crédit Coopératif’s business sectors, in
particular the associations sector, is reflected in the Commitments
Department with a specialised approach to client bases.
> Decisions and delegations of powers
Every loan application is formally recorded using a standard
file adapted to each client segment. This makes for uniform,
efficient loan processing. Loan decisions are based on a system
of delegation of powers taking account of the nature and
amount of the facilities applied for, and the ratings issued by
the tools developed to calculate the new solvency ratio.
> Rating
The majority of our clients now benefit from the score issued
by the tools developed by the Banque Fédérale des Banques
Populaires to calculate the new solvency ratio. In addition, an
internal synthetic indicator of the quality of the credit risk
assessment is assigned to clients at each new loan decision.
This indicator is used to monitor loan portfolio quality and
helps in the day-to-day management of commitments.
> Monitoring commitments
Group Credit Risk Management monitors risks individually
using global approaches by means of a number of alarm
systems, and by analysing debt quality.
A weekly committee meeting is attended by the Commitments
and Disputed-loan managers and the Group Credit Risk
Management. It makes decisions on the riskiest loan files, laying
down a plan of action. A report is written for each decision.
A regular roundup is made on the control of the commitments
of each branch, on the basis of alarm indicators and the
quality of its risk assessment. The proceedings are summarised
by the award of a rating to each branch.
> Monitoring outstanding debt
Risk is analysed using a consolidated approach to the
commitments for a given group. Tables summarising the
situation by sector of activity and by major client segment are
forwarded to General Management and the Risk Committee,
by Group Credit Risk Management, with an appraisal of any
changes in the quality of risks.
This approach also takes account of the risk premiums, which
are reported quarterly, broken down by client sector and
branch, and grouped by General Delegation.
> Managing doubtful clients / clients in dispute
A special procedure defines the rules for downgrading loan
files into the disputed-claim category. Each candidate file for
moving into the disputed-claim category is examined
beforehand by Group Credit Risk Management. This
department performs an initial evaluation of the risk, then the
provisions are determined by the Disputes Department. These
provisions are reviewed quarterly at a committee meeting
attended by General Management and the technical
departments involved in loan management.
30
2.2.2 Financial risks
The Financial Operations Department is responsible for
managing liquidity, placing financial products with clients,
own-account
management,
Group
asset-liability
management and a debt-management consultancy mission
to local government among other clients.
Financial Risk Management includes permanent financial
risk control as such, as well as the middle office, which
performs controls of a different nature on financial
operations. Its manager, reporting to the General Manager,
is independent of Financial Management and his
responsibilities were drawn up to be consistent with the
charter on the control of financial risks defined for the
Banque Populaire group.
> Market transaction and trading portfolio risks
The trading portfolio is deliberately limited, and its position,
calculated each day, remains significantly below the capital
adequacy declaration threshold (a directive on the adequacy
of the amount of equity capital for market risks). Crédit
Coopératif is thus not subjected to the constraints set out in
the CRB 95-02 regulations. However, it endeavours to
monitor, every day, a certain number of indicators relating to
the risks taken: therefore, beyond the trading portfolio, ownaccount management positions as well as the performance
achieved are calculated and monitored every day.
NB: lthe vast majority of financial products in the trading
portfolio in accordance with IFRS standards do not
correspond to speculative operations but are hedging
derivatives, which it has not been deemed necessary to
document as such (e.g. hedging for capped loans), or which
are not recognised by IFRS standards.
> Market risks in liquidity and own-account
management
A financial committee, composed of the General
Management, asset management managers, financial risk
control, liquidity, overall balance sheet management, and
the General Financial Director, meets every fortnight; it
defines the major guidelines for own-account management
and limits the amount of risk that may be taken; in
particular all financial operations that are out of the ordinary
must form the subject of a prior agreement.
The market risks born by Crédit Coopératif are essentially:
- A counterparty risk stemming from purchases of private
bonds, classified in the investment portfolio, with a
relatively short remaining life (maximum maturity at less
than three years, and even less than two years for 80% of
the values outstanding as at the beginning of 2007, but
which was halved in the course of 2008), together with
short-term liquidity management (less than 6 months), to
a lesser extent,
- A share risk, which resides essentially in the share risk
sector of the UCITS shares held in the investment portfolio
or in contracts relating to share indices, where the latter
are initiated for spot speculation rather than hedging
purposes,
Annual Report 2008
- Other positions taken on financial markets, which are more
marginal; therefore, Crédit Coopératif has restricted
activity in proprietary foreign-exchange trading (currency
operations on behalf of clients and currency refinancing
being for the most part covered by market trading) limited
to a few shares held directly, and also, at times, on the
rates markets.
These different operations are carried out within the
framework of authorisations granted in terms of
counterparty limits, duration, amount or risk taken (sensitivity
or stop loss), with an overall limit for the risk considered and
lower limits for particular responsibilities or types of
operations; in this way:
- The maximum overall amount of the bond portfolio is
usually set as part of the budgetary procedure in relation
with Management Control, but it can also be adjusted
during the financial year, as circumstances require (such as
in 2008 when it was reduced significantly),
- Maximum amounts outstanding per counterparty, with
two levels in the light of the latter’s quality (external rating in
particular), were set for bond portfolio management on the
one hand, and liquidity management on the other hand,
- The interest-rate risk taken by the treasurer within the
framework of managing liability and that of the bond
portfolio mentioned above form the subject of a daily limit,
calculation and monitoring, first-level control being
performed by the treasurer himself and second-level
control by Financial Risk Management
- The proportion of equity risk and interest-rate risk
contained in the UCITS in the portfolio is evaluated by
means of a transparent analysis of UCITS and is reconciled
with limits fixed after also taking account of possible stock
index contracts concluded for the purpose of hedging.
- For the foreign-exchange risk, there are two limits, which
are checked every day:
• A first limit is fixed for the currency trader for operations
he/she carries out at his/her own responsibility,
• A more global second limit includes additional exposure,
which may be decided on a case-by-case basis by Financial
Management,
• Finally, the global foreign exchange position is also
monitored day-by-day on the basis of the balances of the
accounts in question, which enables possible delays or
anomalies to be identified when taking account of
operations.
• Structured operations, which are complex by nature, are
practically limited to a few operations conducted with
clients and which should form the subject of market
hedging, by means of “mirror” or “back to back” operations.
Moreover, for certain types of operations, maximum loss limits
have been set, and compliance with them is checked daily.
Financial Risk Management performs second level control of
compliance with fixed limits, on which it reports to the
financial committee and, in emergencies, to General
Management; it is primarily based, for its controls, on frontoffice and back-office data; daily control of new operations
and automated monthly reconciliation of stock also enable it
to guarantee the coherence of these two sources of
information.
The Financial Risk Department is also entrusted with the
following tasks:
- Preparing the own-account management results which are
presented at each meeting of the Financial Committee,
- Calculating the risk value indicators in own-account
management at regular intervals (maximum loss at 10
days with a 99% probability level),
- Controlling the evaluations of the products used in
accounting or in the IFRS notes, together with the market
parameters and the methods used by the calculation models,
- Conducting various spot or regular studies or controls on
more specific subjects; the risks per major asset class are
analysed regularly (changes in counterparty ratings in
particular),
- Reporting to the risk committee on the results of its
analyses.
The Financial Risk Department works in close collaboration
with the internal control correspondents in the front and
back office, who perform a certain number of level one
controls on financial operations.
Transactions are processed within the framework of internal
procedures controlling activity and relating to:
- Market risks:
• Foreign-exchange transactions management,
• The primary and secondary bond market,
• Monitoring and control of market risks. - The operating risks inherent to dealing-floor activities:
• Checking the entry of transactions by branches in debt
instruments issued by Crédit Coopératif,
• The management of trading ticked from the front office to
the back office,
• Sending of confirmation for transactions performed
directly by traders with clients having direct access to the
dealing floor,
• First-level controls by traders and by the activity manager for
the day’s transactions entered in the front-office software.
Monitoring counterparty risk forms the subject of a very
specific procedure: in effect, the financial committee decides
on the applications that must be submitted to it for each
potential counterparty; the middle-office unit responsible
for monitoring transactions ensures compliance with the
limits granted: positions arising from back-office
management software are fed every day into a dedicated
application in which the limits granted are compared with
commitments recorded; any possible anomalies must be
explained, corrected or justified. The scope of this monitoring
is currently being widened to integrate other types of
commitments for all the interbank counterparties.
The list of authorisations granted also forms the subject of
an annual report to Crédit Coopératif’s Board of Directors
and a monthly report to the BFBP risk management
department.
31
2.2.3 Global balance sheet management risks
An asset/liability management committee is devoted to global
group asset-liability management.
Calculation of the positions and the establishment of reporting
is undertaken by an assets/liabilities management unit, which
reports to the Financial Management Department. Since the
end of September 2008, the calculation has been based on use
of a new Banque Populaire Group software program, and
under new conditions:
- Entries concerning stock unmatured at the closing date are
now dealt with in full by the automated processing systems
used in the Information Systems Department,
- The software parameterization is centralised and carried out
by the Asset/Liability Management Department of the
Banque Fédérale des Banques Populaires.
The Financial Risk Department, for its part, provides second
level control.
> Global interest-rate risk
Crédit Coopératif is facing an interest-rate and liquidity risk in
connection with its activity of collecting resources and
granting loans to clients.
The global interest-rate risk is measured quarterly within the
framework of the Banque Populaire Group’s benchmark
document, which determines the limits to be imposed on each
of the Banques Populaires.
Measuring the effect of changes in rates on the forecast
interest margin
The interest margin over the next four years is calculated for a
certain number of rate change scenarios.
For two of these (a uniform decrease or increase in all rates of
100 basis points) group limits are fixed in order to limit the
impact on the interest rate margin for the next two years
Calculating fixed-rate shortfalls [impasses]
These impasses are calculated as from the third year on the
basis of the difference between the forecast outstanding
levels of the stock of fixed-rate sources and those of the stock
of fixed-rate employments. Variable-rate products are
considered as being fixed until the next rate setting date. All
the employments and sources in the balance sheet and offbalance-sheet statement are scheduled either according
to their contractual provisions, as is the case for loans,
or according to a conventional schedule for sight deposits,
each level of stock evolution is depreciated using the straightline method, over a period that varies according to the
category of clientele.
> Liquidity risk
Crédit Coopératif is structurally a lender on the interbank
market, but it also collects long-term resources as part of its
activity and according to its requirements. A limit is fixed for
the borrowing position that it may hold from day to day.
The liquidity risk is also measured within the framework of the
Banque Populaire Group’s risk benchmark document in the
following manner:
- On the one hand via a classic calculation of impasses (stock
32
sources less stock employments) that are limited to 25% of
the initial assets,
- But also in accordance with two crisis scenarios:
• A signature crisis scenario under which the sight deposits
and savings balances outstanding show a sudden 5% fall
over a month, with production of new CDN falling by 50%,
while the short-term credit levels outstanding rise by 2%.
The group limit is set at 0% for impasses during the first
month of crisis (for these impasses, the outstanding
assigned accounts receivable, which stand at high levels for
Crédit Coopératif, are added to the current resources
available).
• A second scenario, known as a systemic crisis, which covers a
slightly longer period: three months, giving the establishment
time to reduce its credits outstanding somewhat; the
objective, which here too is that of avoiding a lack of resources,
is not yet an imposed limit; Crédit Coopératif has no difficulty
in reaching this objective.
Changes in liquidity ratios are also monitored once a month.
> Global foreign-exchange risk
The global foreign exchange position, as it can be measured
using the accounts, is determined and monitored every day.
Throughout the whole of 2007 this global position did not
exceed the threshold of 2% of equity capital, the threshold at
which a special capital-adequacy declaration must be made
relating to foreign-exchange risk, as required by CRB
regulation CRB 95-02 (most of the time in 2008, it remained
between €0.5 M and €1.5 M).
2.2.4 Operating risks
Control of operating risks relies on an internal-control
system, combining prevention and control, that is applied to
all activities and integrates detailed procedures and constant
monitoring, and also on the principle of the responsibility of
the operating line managements.
Within the framework of new Basel 2 prudential regulations,
Crédit Coopératif has deployed its own system for managing
operating risks, based on a methodology that is used
throughout the Banque Populaire Group with unique
benchmark documents for risks as well as quantitative and
qualitative evaluation. In 2008, the benchmark documents
saw significant changes, prior to deployment of ORIX, a
management tool for operational risk mapping.
As soon as it is delivered, early in 2009, by Banque Fédérale
des Banques Populaires, the tool will be deployed in each of
the business applications as its functional coverage
progresses. The process to update the mapping, for each
business activity, will be carried out in the light of the
expected evolutions in the tool.
The loss databases continue to be drawn up each year since
2005.
The system situation is covered by regular information from
the various dedicated committees, and in particular the
Operational Risks, Conformity and Security Committee,
which was set up recently and held its first meeting in 2008.
The process of maintaining in working order the Continuity
of Activity Plan for the Crédit Coopératif Group, aiming to
Annual Report 2008
guarantee that it is up to date and therefore effective, was
continued in 2008, in accordance with the recommendations
for the “Phenix” methodology provided by the Banque
Fédérale.
Moreover, the migration of the main Crédit Coopératif
computer systems centre to its new location once again
showed the pertinence and efficiency of its backup computer
systems centre.
Furthermore, once again the backup procedures concerning
the essential activities were tested in the form of
a large-scale user migration exercise, leading to the
conclusion that the coming migration of staff systems at the
headquarters can be envisaged in full tranquillity.
2.2.5 Non-compliance risks
The non-compliance risk is defined as “the risk of legal,
administrative or disciplinary penalties, considerable
financial loss or damage to reputation, resulting from failure
to comply with measures pertaining to banking and financial
activities, whether legislative or regulatory in nature, or
pertaining to professional or ethical standards, or
instructions from the management body taken, in particular,
according to the directions set by the decision-making
body.”
In compliance with the amended regulation CRBF 97-02, a
team dedicated to monitoring the risks of non-compliance is
entrusted with a mission of prevention, monitoring and
raising alarms. It covers aspects relating to combating
money laundering and the financing of terrorism, legal
compliance and regulation of investment services.
2008 saw reinforcement of the internal control system used
to enhance detection of risks of nonconformity.
Monitoring the risk of legal non-compliance and
investment services is based on:
- A regulatory monitoring system,
- Staff training,
- A procedure organising compliance-related approval of
new products and processes,
- Ethical rules, which form the subject of regular surveillance,
- Monitoring malfunctions, with an alarm procedure
designed for employees,
- Checking compliance with professional obligations.
A first level unit monitors the combat against money
laundering and fraud in branches using a computerised
system to detect unusual operations. At the second level, a
dedicated unit provides additional controls and ensures the
consistency and conformity of the equipment.
2.3. ORGANISATION OF THE INTERNAL
CONTROL PROCEDURES RELATINGTO ACCOUNTING AND FINANCIALINFORMATIONThe duties and organisation of accounting departments are
presented in a standardised document. Each task is identified,
classified by the nature of the role and assigned to a named
manager. Periodic operations and pinpoint actions are
detailed in a schedule; the procedures describing the
conditions applied to checks of the principal operation
processing systems are recorded.
All banking operations, carried out by the various authorised
units, are recorded using dedicated IT applications, and,
to a lesser extent, by direct accounting entry.
Within the framework of a general, centralised processing
system, the accounting information technology system
produces standardised, referenced elementary accounts
posting entries, based on an organised framework termed
the “rules of the game”, which incorporates predefined
accounting schedules and uses a general system of accounts,
the operation of which obeys rules set and administered by
the Accounts Department (chart of accounts, accounting
schedules, authorisations, etc.).
Accounting and financial information is based on the
chronological recording of operations, the keeping of
documentary evidence, and the drafting of accounting
procedures, currently in progress.
The end-to-end responsibility for the accounting process lies
with the Accounts Department, which defines the accounting
checks to be performed by each of the management units.
Assignment of internal control of accounting information is
undertaken in accordance with three levels:
- Decentralised self-inspection performed by staff in the
operational departments, as regards the conditions for
performance of banking operations,
- Permanent accounting control performed by the operating
departments and by the Accounts Department. Therefore,
reports evidencing general-accounts balances are drawn
up monthly by the branches, centralised and controlled
by the Accounts Department, the latter also reconciling the
inventories and accounting balances. Suspensions for
anomalies form the subject of feedback to the relevant line
management and the Continuous Control Department,
- Lastly, periodical checks by:
• Crédit Coopératif’s Inspection Department, performing
targeted missions within branches and central departments,
• The statutory auditors, within the framework of work
scheduled annually to audit the financial statements at
30 June and 31 December for all the companies within
the Crédit Coopératif Group, since the financial year 2007,
including a quarterly audit of Crédit Coopératif’s accounts,
• Externally, the Inspection Departments of the BFBP and
the Commission Bancaire [French banking commission].
The managers of commitments in terms of expenses or
payables never deal with their payment.
> Main accounting-control procedures
Progress in accounting controls is recorded as it happens
using a monitoring table, analysed at regular intervals by the
Accounts Department line management and summarised
half-yearly for the information of the Continuous Control
Department, the Accounts Manager and Operations
Management. Within this framework, various alarms are
issued as regards suspense accounts (amount, direction,
33
duration, type, etc.), the balances of anomalous accounts
and the difficulties experienced by the counterparty units.
The statutory reports are compiled at regular intervals using
a dedicated tool associating with the accounting information
a variety of attributes generated by the various management
systems. Documents are cross-checked to ensure consistency
in the information produced. These reports are drawn up for
the company itself and at the level of the Crédit Coopératif
group and the Banques Populaires network.
The Accounts Department performs a monthly calculation of
net banking income and a quarterly determination of the
result after corporation tax. These items are checked against
the budget data. The regularity of this procedure helps
ensure its reliability. The financial statements finalising
schedule is disseminated to the units concerned, stating the
information required and the time-limits to be adhered to.
34
The group’s financial statements are drawn up every quarter
in accordance with IFRS standards and the statutory auditors
validate the consolidation files for Crédit Coopératif every
quarter. They conduct an audit of the consolidated financial
statements as they are drawn up on 30 June and each time
they are drawn up annually.
Apart from the actions of the Statutory Auditors, the quality
of the accounting process is inspected by the Crédit
Coopératif Audit Department, the Audit Department of the
Banque Fédérale des Banques Populaires and the Commission
Bancaire departments.
Annual Report 2008
Statutory auditors’
report on the chairman’s
report
Crédit Coopératif S.A.
PostAddress: 33, rue des Trois Fontanot – 92 000 Nanterre
Share capital: 493 718 765,25 e.
Statutory auditors’ report, drawn up in accordance with article
L.225-235 of the French Code of Commerce, concerning the
chairman’s report.
Year ending on 31 December 2008.
Ladies and Gentlemen,
In our capacity as the statutory auditors of Crédit Coopératif
S.A., and pursuant to Article L. 225-235 of French Commercial
Code, we submit to you our report on the report drawn up by
your company’s Chairman in accordance with Article L. 22537 of French Commercial Code in respect of the financial year
ended 31 December 2008..
It is up to the chairman to draw up and put to the Board of Directors
for approval a report listing the internal-control and risk
management procedures set up within the Company and providing
the other information required under the terms of Article L. 225-37
of the French Commercial Code, concerning in particular the
corporate governance systems implemented.
It is our task to:
• Communicate to you the comments we need to make on
the information contained in the Chairman’s report
regarding the internal-control procedures relating to the
generation and processing of accounting and financial
information, and
• Certify that the report contains the other information
required under the terms of Article L.225-37 of the French
Commercial Code, with the further proviso that our mission
does not include verification of the sincerity of that other
information.
We conducted our audit in accordance with professional
standards applicable in France.
These standards require us to conduct investigations so as to
verify the concordance of the information concerning the
internal control procedures relating to generation and
processing of the accounting and financial information
contained in the Chairman’s report. These investigations
consist specifically of:
• A
cquainting ourselves with the internal-control procedures
relating to the generation and processing of accounting
and financial information, underlying the information
presented in the Chairman’s report as well as existing
documentation,
• Acquainting ourselves with the work that enabled this
information and the existing documentation to be compiled,
• Determining whether major deficiencies in internal control
relating to the generation and processing of accounting
and financial information, which we may have noted within
the framework of our audit, form the subject of appropriate
information in the Chairman’s report.
On the basis of this work and these activities, we have no
comments to make on the information provided with regard
to the company’s internal-control procedures for the
generation and processing of accounting and financial
information, as set out in the report by the Chairman of the
Board of Directors drawn up in accordance with Article L. 22537 of the French Commercial Code.
We certify that the report drawn up by the Chairman of the
Board of Directors contains the other information required
under the terms of Article L.225-37 of the French Commercial
Code.
Paris La Défense, 13 March 2009
KPMG Audit
Department of KPMG S.A.
Fabrice Odent
Partner
Paris, 13 March 2009
SOFIDEEC Baker Tilly
Cyrille Baud
Partner
Jean-François Demargne
Partner
35
36
Annual Report 2008
Management report
of the Crédit Coopératif Group
2008
has turned out to be a year of
sustained activity for the
Crédit Coopératif Group. Of
course, the Group was not
completely spared by the successive financial crises that
marked the year and have weighed down the Group’s
earnings. Nonetheless, their consequences remain relatively
limited and restricted, because Crédit Coopératif’s activities
are mainly centred on collection of resources, loans and
services for its members and clients.
The growth in the numbers of clients is above 10%, with in
increase of over 5% concerning legal entities and over 12%
for physical persons. At the end of the year, the Group had
more than 242,000 active clients.
Concerning the amounts deposited by the clientele, the
annual average amount outstanding (13.8 billion euros) rose
by 8.2%. The increase in balance sheet resources is smaller
than in 2007 (+ 7.5% for deposits on sight, + 24% for
deposits bearing interest), except for the savings accounts
(+ 11%) due mainly to an efficient campaign anticipating the
high interest levels on Livret A savings passbook accounts.
The UCITS balances outstanding showed in increase of 3.7%
as against the average balance outstanding at 31 December
2007, which constitutes a good performance level in the
context of the year.
Alongside stability in short-term loans, investment loans
showed particularly strong growth (over 26%), especially
in the last few months of the year. This is a positive sign,
but it requires vigilance. To anticipate risks, substantial
provisions have been set aside and all the staff have been
asked to apply the necessary discipline in granting loans,
during the current period of increasing sectoral and
business risks.
The surplus resources further buttressed the Group’s
autonomy and its ongoing loan activities. They provide
leeway for reflection and action, but the question of their
allocation will provide a major theme of reflection in 2009.
The information systems department carried out numerous
projects during the financial year, with in particular the
transfer of the computer processing centre to a new site
that is better suited in terms of operational security and
continuing activities.
The year was strongly marked by the highly participative
procedure carried out to draw up the Coopéraction 2015
corporate plan and the 2012 medium-term plan. Launched
at the end of January 2009, the project expresses the
Group’s dynamism and its determination to accentuate its
growth while complying with its basic principles and its
vocation.
Lastly, services are seeing growth, which is linked to the
overall increase in levels of activity. The number of transactions
made increased by +5.4% to reach 129.3 million.
37
1. 2008 Activity
of the Crédit Coopératif
Group
1.1 THE ECONOMIC AND FINANCIAL
ENVIRONMENT2008 : a painful year
In the wake of 2007, which was affected by the transformation
of the American real estate crisis into a banking crisis
(subprime crisis), 2008 saw a wave of successive crises
spreading at an international level.
After an initial alert at the beginning of the year with the
bailout of Bear Stearns, the spread of the banking crisis
enhanced aversion to risk and volatility, which in turn took
the system close to its breaking point. Fortunately, the
interventionism coordinated at a worldwide level by the
central banks and the States ensured continuity by taking
over the role of the markets, which were paralysed because
they had lost their bearings. Unprecedented steps were taken
to avoid a systemic crisis. All the sectors, and even some
countries, were then contaminated. In a context of
exacerbated aversion to risk, the financial crisis became an
economic crisis, and the difficulties encountered in the USA
took on worldwide proportions.
2008 thus saw a break in the worldwide growth cycle. All
countries are affected, either by the credit crunch and the real
estate and stock exchange shakedown, or by the slump in world
trade, or by the liquidity shortage linked to the oil and raw
materials aftershocks. The OECD countries went into recession
on a synchronised basis. The job situation started to worsen, and
this had consequences on consumption levels and led to
shrinkage in supplies. In the English-speaking countries, which
are strongly finance-driven, the pension and health schemes
were unsettled. The landing was a hard one: consumers have to
integrate their impoverishment and the end of a model based
on over-consumption and
over-borrowing.
France, for its part, was already showing signs of weakness
before the events in mid-September. A strong euro, the
slowdown in world trade and high oil prices weakened its
internal economic structures, and even led to contraction in
the GDP for the second quarter. Since the bankruptcy of
Lehman Brothers, the flow of bad news has clouded prospects.
Sorely tried and weakened by the tightening credit squeeze,
the French economy just managed to avoid recession in 2008.
However, the main difficulties are yet to come. The real estate
slump has hampered consumer dynamism, which is a pillar of
38
French growth. Sales of household goods showed much slower
growth in 2008 (+3.5%) following record figures for 2007
(+15%). At the same time, all the indicators in the building
sector switched to red. The falls in the indicators given for the
sector in 2008 (building permits: -17%; site starts: -16%),
coupled with the wait-and-see attitude stemming from the
tightening bank loan conditions, translated into a major increase
in stock levels. For the moment, real estate price adjustments
have remained small (-3.1% in 2008 in prices of existing
houses).
At the same time, on the supply side, SMEs, whose profitability
had already been weakened, were threatened by the banking
crisis. Bankruptcies and company restructuring could push the
economy into a recessive vicious circle, in which rising
unemployment hits consumer morale, and consumers cut
their spending, thus leading to a fall in supplies and hence job
losses. The initial signs of a recession have already been noted
in 2009, but the duration and depth of the slump could be
lessened or worsened by consumer attitudes to savings. The
psychology of the economic players is thus the key question
for the coming months. By lowering interest rates on savings
and making loans cheaper (and hence providing support for
the real estate market), the policy of low interest rates
constitutes an especially crucial element for dealing with the
problems faced by the French economy.
At an international level, the central banks and the States are
reactive and they are following in the USA’s footsteps with
reflationary plans and steps to ease money supplies. Risk-free
remuneration rates have fallen sharply. 2008 is thus also
a year in which the cornerstones of recovery were laid.
Concerning prices, 2008 saw some relatively strong contrasts.
The first six months were dominated by the risk of an
inflationary spiral, in the wake of the sharp rises in the prices
of raw materials. In the second half of the year, the strong oil
aftershock (-74% between the highest and lowest prices),
coming on top of the worsening in the financial crisis
(September) and the economic crisis (unemployment, stock
clearances) quickly hit the inflationary problem on the head.
On the financial markets, 2008 thus marked a sea change for
the coming years. Market operations (regulations, standards,
etc.) and the market landscape are changing fast, with the
disappearance of some major banking entities, while others,
such as hedge funds, have been considerably weakened and
could well disappear in turn.
Of course, the stock markets were hit hard by these multiple
Annual Report 2008
crises. Share prices saw their worst year since 1931
(MSCI World: – 42.1%). Basic principles and evaluations
melted away before aversion to risk and the need for liquid
assets, so the surprising strength shown in company earnings
outside the financial sector failed to stem the tide. Most of
the stock indices fell to historic lows. In emerging countries,
the Russian stock index showed the sharpest fall (-72.7%),
followed closely by China (-69.7%). In the developed
countries, the falls stood at -30% to -45%. With only two of
the twelve months showing positive monthly variations, the
CAC 40 lost 42.7% over an extremely volatile year.
Lastly, from a geopolitical standpoint, although there were
many sources of tension, the election of Barack Obama
as President of the USA gave rise to some fragile yet
opportune hopes for international coordination, in spite of
the risk of a protectionist backlash stemming from the
various crises.
1.2 OUR CUSTOMER SEGMENTS1.2.1 COOPERATIVES AND SMES
With 2008 growth of over 17% in the volume of investment
credits made available for its business clientele,
Crédit Coopératif is continuing to show growth in all its
sectors of activity, and especially in sustainable
development.
The experience it has built up with SMEs and SMIs over the
last thirty years enables it to amplify its levels of
intervention, just as it is able to rely on its expertise in
numerous fields of business activity, such as mechanical
engineering, shipping, food and agriculture, motor vehicle
distribution, etc., to accompany their growth in the most
efficient ways.
It has been present alongside SCOP production cooperative
societies for a long time, and it reaffirmed its presence at
their side during their latest Convention in May 2008, by
signing an outline agreement that covers transfers of
business concerns in the form of employee takeovers,
amongst other things. Transfer of businesses is also one of
the core concerns of all our customer segments, be they
cooperatives of artisans, tradesmen, carriers, etc. Crédit
Coopératif has set up a partnership with the APERE
business transfer network to accompany sellers and buyers
in the various stages of the transfer and takeover
procedures.
In recent years, it has paid careful attention to financing
emerging sectors: renewable energy sources, and
protection of the environment, and it is determined to
strengthen its skills, within the framework of financing for
“environmental” projects in other cooperative sectors,
especially farming cooperation.
In a general way, it has developed a full range of products,
ranging from consulting to financing, to accompany the
“Sustainable Development” procedures undertaken by all
its customer segments. Since 2008, Crédit Coopératif has
been a partner of the ACFCI (Assemblée des Chambres
Françaises de Commerce et d’Industrie – Assembly of
French Chambers of Commerce and Industry) and the
ADEME environmental and energy conservation agency
within the framework of the multi-stage certification
procedure known as “1.2.3 Environment”.
With a business model based on partnerships, Crédit
Coopératif develops close relations with professional
organisations and the groups formed by its clienteles, thus
enabling it to share its objectives know-how, and
experience.
1.2.2 PROFESSIONAL SPECIALISTS IN BUILDING
AND CIVIL ENGINEERING
The building and civil engineering sector saw a cyclic downturn
in 2008. A fall of about -15% was noted in the numbers of
housing unit starts, and this was not offset by the growth in
the social housing sector. The same fall was seen in civil
engineering, due mainly to an unfavourable electoral cycle, in
that the arrival of new teams at the municipal council level
was not conducive to the swift launch of new programmes.
The forecasts for 2009 are not very optimistic, with a fall in
volume of about 6% for the building and civil engineering
sector as a whole.
The Crédit Coopératif Group has a strong presence in the
sector via its subsidiary BTP Banque, which has a network
of 32 branches throughout France.
BTP Banque showed steady levels of activity in 2008, with
slower growth than expected, due to the unfavourable
situation. Collection is showing growth with a transfer of
assets from UCITS to term deposits, which have shown strong
growth throughout the year. The overall levels of customer
loans remained stable at the same levels as 2007, whereas
commitments by signature, which account for a significant
share in BTP Banque activities, showed strong growth.
Thus BTP Banque stood up well to the 2008 cyclic downturn,
but 2009 shows high levels of uncertainty.
Over the longer term, BTP Banque has begun work on a
medium-term plan for 2009-2012, whose main lines cover
development of a sales policy based on enhanced adaptation
of its offer to the various target customer segments, widening
the range of products provided for clients, development of
total banking relations with current and future clients, and
enhancing its reputation, organisation and quality, at the
service of professional specialists in building and civil
engineering.
1.2.3 ASSOCIATIONS AND ORGANISATIONS
OF GENERAL INTEREST
Crédit Coopératif is a reference bank for organisations
carrying out activities dedicated to services of general interest
(OIGs in French). Associations large and small, mutual
societies, social organisations managing housing, semipublic companies, or even classic joint stock companies
within the framework of subsidiaries, their activities are very
wide-ranging, but they are essential for the balance of our
society: health, social action, social housing, education,
integration, international solidarity, culture, environment,
welfare, sport, etc.
Our activities with this type of clientele saw a fast increase
39
in 2008. For its 36,800 clients in this sector, including 16,000
small and medium-sized associations, Crédit Coopératif
manages €822 M€ in bank savings (a rise of 9.9% over the
year), and €3.2 billion in financial savings (+9.3%), with
outstanding medium-and long-term loans in the sector
amounting to €1.7 billion (+24%). It develops products and
services to suit the specific economic, legal and fiscal aspects
for operators in each of these sectors, with well-known
expertise enriched by the close links it has set up with its
members and their movements and professional
organisations, in the field and up to its Board of Directors.
The relations between Crédit Coopératif and its clients are
above all those of partnership. In particular, 2008 saw the
launch of a mutual profit-sharing fund for the Fondation
Abbé Pierre charity organisation and its action in favour of
housing for the penniless, closer links with popular education,
higher education and research movements, strengthening of
our presence among social housing operators and their
federations, with special attention paid to preserving
financing circuits for social housing and a particular effort to
encourage ownership access to social housing. Without
waiting for the impact of the various crises on jobs, we
further tightened the already close links with the various
networks supporting the economic integration sector and
socially responsible organisations such as France Active,
Coorace and Cnei.
1.2.4 A BANK FOR SMALL AND MEDIUM-SIZED
ASSOCIATIONS
Crédit Coopératif is also a banker for small and medium-sized
associations (SMAs), with over 16,000 small and mediumsized client associative structures that are the object of
specific identification in order to adapt the offer to their size,
requirements and expectations.
It has developed a range of dedicated products, around an
inclusive banking fee: “Esprit Associations”. It also took part,
in partnership with the France Active association, in setting
up the IMPUL’SIO guarantee to facilitate development
of equipment loans for small and medium-sized associations. The fee includes access to the “Coop@net” online bank, and
38% of the SMAs now use these services (as against
32% a year earlier).
The growing numbers of clients among SMAs, in particular in
the sectors of culture, social action, and the environment,
shows the quality of the response provided for them. This
confirms the professionalism shown by Crédit Coopératif and
its knowledge of the sector.
By identifying SMAs and dedicating products to them, Crédit
Coopératif facilitates growth among the associations and the
everyday management tasks of the people running them.
1.2.5 A BANK FOR PRIVATE INDIVIDUALS
Crédit Coopératif attracts growing numbers of private
individuals each year. It has almost 225,000 clients, including
110,000 protected persons.
Throughout its network of branches, and also via its call
centre and a dedicated online branch, it provides the range
of products and services that is expected of a bank with an
40
original approach: almost all the range is available in socially
responsible versions. The range of socially responsible
products was set up as early as 1983, stemming from its close
relations with the actors in the field, thus providing Ecofi
Investissements with 25 years of experience in ethical,
socially responsible management.
As can be seen from the amount of almost 4 million euros in
donations stemming from socially responsible products this
year, 2008 confirms the progress made by this type of
savings, boosted by the Agir range, Faim et Développement,
Confiance solidaire and the success of the latest product in
the range: Agir 18/28 for young socially responsible people.
2008 is the bioclimatic housing year, and it confirms the lead
taken by Crédit Coopératif with its eco-housing range
of loans that is being widened to include social housing. It is
also a year that is seeing enhanced growth in production
of social micro-loans for exposed populations, in partnership
with players in the social economy. Lastly, it was the year that
saw the milestone of 10,000 loans to private individuals
passed, with the help of the launch of loans made to members
of the Comité National d’Action Sociale (CNAS – French
national social action committee).
Crédit Coopératif also counts over 110,000 protected persons
among its clients. For over 20 years, with associations or other
actors in the world of the disabled, handicap, it has developed
a high level of services to manage activities for guardians. The
staff in the branches have been trained to welcome and deal
with the mentally retarded.
All this shows Crédit Coopératif’s daily usefulness and its
action as part of an economy with a human face.
1.3 BUSINESS ACTIVITIES AT THE SERVICE
OF THE REAL ECONOMYAs part of a logic involving full banking relations, and via its
two national banking networks, Crédit Coopératif and BTP
Banque, together with specialised subsidiaries for various
types of professional activity, the Crédit Coopératif Group
provides the full range of banking, financial and technological
products and services that firms, organisations in the public
interest and private individuals expect of a bank, for their
operations in France or in other countries.
It is also developing its dedicated types of expertise and
tailor-made solutions with its clients’ movements and
professional organisations. The necessity of taking their
specific aspects into account has led it to install powerful
information processing systems that it can place at the
disposal of partners, such as associated establishments, to
deal with their management requirements. To guarantee
enhanced reliability, the Group has installed secure
equipment and a plan to ensure continuity of activities.
1.3.1 Financing
The Group’s origins, credit and facilitating access to credit,
remain its core activity. The range of financing meets all the
requirements of legal entities and physical persons alike:
financing for equipment, real estate or intangible
Annual Report 2008
investments, in the form of classic loans, leasing, or financial
leasing; meeting requirements linked to operating cycles,
etc.
In 2008, in spite of the gloomy context at the end of the
year, the total amounts of loans made available grew by
16.3% (310.9 million euros), with growth rates of 22.2% for
long-term loans and 22.8% for short- and medium-term
loans to Crédit Coopératif clients. The average end-of-month
amounts outstanding for Crédit Coopératif and its
subsidiaries stand at 6.351 billion euros.
To facilitate access to credit, mutual guarantee mechanisms
(specialised guarantee funds, financial cooperatives of SMEs
and SMIs) are used on a regular basis. The Crédit Coopératif
Group is also a partner of French public systems such as
social loans for rented housing (PLS in French) for social
housing associations and authorities; PSLA (social housing,
with cooperatives in particular); social cohesion funds to
guarantee professional micro-loans (such as partnerships
with Adie) or personal micro-loans; Caisse des Dépôts for
specific financing.
Assignment of receivables is a very common practice,
especially for non-profit-making organisations and in
building and civil engineering activities. The offer of bank
guarantees for works contracts is very dynamic, mainly
thanks to a highly efficient distance management tool.
Crédit Coopératif provides real estate and consumer loans
for private individuals, concentrating mainly on their
environmental and eco-housing equipment projects.
2008 saw implementation of t he borrower rating system
within the framework of the new McDonough solvency
a partner of the CEB and the EIB
As at the end of 2008, Crédit Coopératif had invested in
full the loan of 50 million euros granted to it by the
Council of Europe Development Bank (CEB) to finance
investments in the health, education and professional
training sectors, throughout France.
The funds were used to back projects that help to
strengthen social cohesion and target vulnerable
populations to begin with: elderly people, the disabled,
those confronted with dependency or illnesses, and
young people and adults in difficult social situations.
ratio. The Banque Populaire Group has decided to apply its
own rating system, in which Crédit Coopératif has been able
to highlight the specific aspects of its customer base,
especially in the associative world.
> Equipment leasing
Under the Coopamat brand name, the Crédit Coopératif Group
offers financing for equipment and vehicle leasing, for SMESMIs of all sectors, artisans and associations. This financing
solution is appreciated by the clientele due to its flexible rate
charts, and the simplicity and rapidity in setting up dossiers. In
2008, the Crédit Coopératif equipment leasing production
activities stood at 101 million euros, an increase of 3% as
compared with 2007.
> Property finance leasing
Crédit Coopératif carries out property leasing activities via 2
subsidiaries: Bati-Lease and Inter-Coop:
Bati Lease (formerly BATINOREST)
A subsidiary in which Crédit Coopératif has owned a 95%
holding since early in 2006, it is the number one property
finance leasing operator in the Nord - Pas de Calais region,
with an offer built around investment finance for regional
companies in the form of property finance leasing, property
loans and long-term leasing. Under the Crédit Coopératif
Lease name, it has become the property finance leasing
operator for the Crédit Coopératif Group throughout France.
In 2008, Bati Lease’s activities continued at a strong pace,
with a rise of almost 30% in financing agreements, which
reached €144.5 million, and 22% growth in the number of
contracts signed, with €111.7 million in dossiers signed and
offers accepted.
INTER-COOP
A property finance leasing company dedicated to professional
property, it devotes its activity primarily to managing its asset
base and to expanding its prior operations. Crédit Coopératif
now carries out its property leasing transactions via BATI-LEASE.
As at 31 October 2008, INTER-COOP took over all the property
finance leasing contracts held by INTERCOP LOCATION (formerly
SICOMI-COOP) which had carried out extinctive management
since the end of the SICOMI system in 1996. This meant that
Intercop location lost its certification as a credit establishment
and is now limited to a residual activity of property rental.
1.3.2 Savings and investments
The initial CEB loan highlighted the European recognition
of Crédit Coopératif’s activities in the field of the social
economy, which completes the partnership that has
continued over many years between Crédit Coopératif
and the European Investment Bank (EIB) to finance
SMEs. In 2008, Crédit Coopératif thus invested the full
150 million euros loaned to it by the EIB under the 12th
partnership programme. A thirteenth loan is currently
being studied, covering an amount of 150 million euros,
again to finance SMEs and SMIs.
> Savings
DE
Crédit Coopératif provides its clients with the full range of
classic savings products (bank savings accounts, registered
home ownership savings plans, time-deposit accounts)
together with socially responsible savings products, for which
it is the recognised specialist at a national level.
Crédit Coopératif’s socially responsible savings products
enable savers who so wish to share some of the interest
paid out to them with Crédit Coopératif’s partner associations
operating in all the socially responsible fields (environment,
international solidarity, help for the disabled, support for
41
renewable energy sources, integration, etc.).
In 2008, more than 13,000 socially responsible products were
subscribed by Crédit Coopératif clients. The overall shared
savings amounts outstanding reaches almost 270 million
euros, held by nearly 50,000 active socially responsible clients,
who made donations of almost 3.9 million euros in 2008..
> Financial intermediation
Crédit Coopératif’s financial solidity and its position as a net
lender on the monetary market make it a much-sought-after
counterparty in Paris, where it maintains many active
relationships. Its ability to make economic analyses and
evaluate market risks, the clear-cut separation between its
own-asset operations and the operations carried out for its
clientele enable it to intervene under the best conditions of
efficiency and safety. The fact that its rating system is
aligned on that of the Banque Populaire Group constitutes a
favourable element for this activity.
Its work is built around three main types of services:
- An offer covering investments in time-deposit accounts,
deposit certificates or medium-term notes with all maturities.
Able to satisfy its clients concerning the amounts and durations
of their choice, Crédit Coopératif had issued securities worth a
total of 2.353 billion euros as at the end of 2008;
- Proposals concerning investments in bonds on the primary and
secondary bond markets. In 2008, 85 million euros were
handled under this scheme. Thanks to the partnership set up
with medium-sized banks in the UGP (Union de garantie et de
placement – Guarantee and investment union), the Crédit
Coopératif Group is a stakeholder in most bond issues put out
in Paris, thus providing its clients with special access to the
market.
- An offer covering swaps and rate risk hedging instruments,
adapted to suit client requirements, especially those of borrowers.
> Asset management
Asset management for third parties is one of the Crédit
Coopératif Group’s activities; it is carried out by a dedicated
subsidiary: Ecofi Investissements.
Active depuis plus de 30 ans dans ce métier, Ecofi
Investissements gère 8,17 Mds € (au 31 décembre 2008). Ses
produits et services sont commercialisés auprès d’une
clientèle d’investisseurs institutionnels et de clients privés à
travers ses partenaires distributeurs et les réseaux du Crédit
Coopératif et de BTP Banque.
Active in the field for over 30 years, Ecofi Investissements
manages assets of 8.17 billion euros (as at 31 December 2008).
Its products and services are commercialised among a
clientele of institutional investors and private clients via its
distributor partners and the Crédit Coopératif and BTP
Banque networks. Along four avenues of research –
economic analysis and asset allocation, financial analysis,
quantitative analysis, and ethical and socially responsible
analysis – Ecofi Investissements provides management
based on conviction and backed up by the pooled experience
of its 18 managers, with a range of monetary, bond
and share UCITS, managed using fundamental,
quantitative, ethical and socially responsible principles.
crédit coopératif c’est un choix
42
Ecofi Investissements often receives awards, and in 2008 it
was recognised for the quality of its management: 4th out
of 25 in the Alpha League Table; Trophée d’or from the Le
Revenu magazine: best overall performance level over 10
years; Trophée d’Argent from the Le Revenu magazine: euro
bond range over 3 years. The performance levels of the Ecofi
Investissements UCITS range can be accessed on the
Internet at the following address: www.ecofi.fr
With the extra advantage of its position as a member of the
Crédit Coopératif Group, Ecofi Investissements is strongly
attached to the values of the socially responsible economy.
It is one of the pioneers in ethical and socially responsible
finance, with 25 years of experience in the field (creation of
the first European shared fund in 1983) and it puts forward
a fully adapted UCITS offer including sustainable
development funds, theme and shared funds, socially
responsible investment funds (ISR in French) – with a
rigorous, transparent “best in class” methodology – and
socially responsible funds.
In 2008, Ecofi Investissement stood up better than its
competitors to a very difficult market context. Whereas in
France in 2008, management companies as a whole lost
18% of their investment amounts outstanding, Ecofi was
able to maintain its amounts. Its investment philosophy,
based on a fundamental, financial analysis, and creation of
innovative products that are designed to make the most of
market opportunities, such as Ecofi 3 months, which had
passed the billion euro mark by its first anniversary, enabled
its to meet its clients’ expectations and reinforce its growth
projects.
In the course of the year, Ecofi Investissements enriched its
range by creating 14 UCITS, 7 of them dedicated.
Ethical and socially responsible management took pride of
place with the creation of two open UCITS, Ecofi
Développement Durable and Agir avec la Fondation Abbé
Pierre, and a dedicated UCITS for the Restos du Cœur
association providing meals for the needy.
Ecofi Développement Durable, an international share mutual
fund invested in the sustainable development theme, is
characterised by its wide range of themes (core themes and
supporting themes in relation with human aspects) and its
geographical diversification.
Agir avec la Fondation Abbé Pierre is a mutual fund that
brings together the principles of sharing and socially
responsible investment and management, and provides
support for the Foundation in basic social housing. The fund
has obtained Finansol certification, which is granted to
savings products providing the required levels of
transparency, ethics and social responsibility.
The range was also enriched by creation of two funds:
- Ecofi Taux Fixe 2013, a euro bond UCITS, enables holders to
benefit from good levels of returns on the rate curve.
Crédit Coopératif Rendement Sécurité 2, for its part,
provides an opportunity to invest on stock markets, via its
underlying Ecofi Actions Rendement scheme, which
frequently wins awards, while benefiting from a guarantee
as to the unit value on maturity.
- Ecofi Macro Diversified, a diversified patrimonial fund
Annual Report 2008
whose management strategy is based on detection
of investment opportunities over a very wide spread, both
geographically and in terms of asset classes and segments
within those classes.
bank cards, direct debits, bank transfers, Tip and Tep payment
methods, etc.) were completed in 2008 with new services in the
form of implementation of Sepa European bank transfers, firstly
transfers received, and then transfers made.
> Life insurance
Crédit Coopératif has a full range of life insurance investment
schemes, with contracts in euros or multi-support contracts,
in partnership with the MUTAVIE (MACIF Group) and MMA
VIE Group insurance companies.
The range put forward by Crédit Coopératif is designed to
meet all its clients’ requirements: from monthly construction
of savings to capitalisation, boosted or not by financial
supports, via products providing regular income or enabling
savers to express their solidarity towards humanitarian
associations (Choix Agir). To underline its seriousness and
the quality of the management provided by its partners, the
range is often selected by many judges administering the
property of people under guardianship.
In 2008, the assets managed under the life insurance
products taken out by private individuals with Crédit
Coopératif increased by nearly 13% to reach almost 250
million euros.
> Technological services
Due to the distances involved in its network, the Crédit
Coopératif Group started to provide technological services at
a very early date, concerning distance processing of operations,
and the Internet subsequently provided a further range
of successful services.
Use of online banking services has seen considerable growth:
Coop@net and BTP@net, the secure Coop@trans site to
exchange payments and statements via teletransmission, the la
Click & Trust digital certificate solution for remote administrative
procedures, and online applications for Coopimport
documentary credit or bank guarantee services. NetPrélévement
can be used to handle and monitor direct debits and dishonoured
bills; it is aimed mainly at associations and works committees.
In the computerized payment field, Crédit Coopératif provides
secure payment systems for bank cards via solutions (Cirra and
Paybox offers) that range from electronic payment terminal
equipment to systems adapted to specific activities. Its online
payment solution is well suited, amongst other things, to
collecting donations and paying subscriptions.
The Astel offer for trustee managers, the market leader, has
been designed in partnership with them for 20 years now, and
it led to designing a capped cash card. Astel and AT Services,
which are services dedicated to handling trustee management
activities, are recognised for their quality.
The cheque processing system meets the requirements of major
users, such as mass retailers or mutual health insurance
organisations, and it is covered by reciprocal back-up
agreements with Natixis.
1.3.3 Banking services
The number of clients with an active account at Crédit Coopératif
or BTP Banque reached 242,216 at the end of 2008, i.e. an
increase of 10.1%. Almost 63,000 of these clients are legal
entities, and about 180,000 are private individuals.
In all, in 2008, the Group carried out 129.3 million computerized
banking transfer operations (+ 5.4%), including 28.5 million via
Etebac (+ 12.6%). The number of subscribers to the Coop@net
et BTPnet online banking services grew by 26% and 13.2%
respectively. Other than supervision, this means that 30% of our
clients subscribe to the online banking services, a level that is
likely to increase.
Clients have access to all the classic banking services, at rates
that put Crédit Coopératif in an attractive position on the
market, especially for its distance branch dedicated to private
individuals. Invoicing is linked to consumption, and there are
not many flat rates or packages (Rayon Pro and Rayon Perso, for
associated trade, and Esprit Associations, for small and mediumsized associations). In spite of a tradition of low invoicing rates,
the commissions received amounted to 130.7 million euros, an
increase of 5.7% over 2007, partially making up for the low
margins on loans.
In partnership with Factorem, a member of the Banque
Populaire Group, and the number three factor in France, clients
have access to client side management products (commercial
information, credit insurance, factoring).
The services linked to management of current accounts provide
added value: merging accounts and providing balances, for
example. Services concerning processing of financial flows and
means of payment are provided for smaller clients and major
clients alike. Further online banking services and new
functionalities are added frequently (guarantees, recovered bills
of exchange, portfolio monitoring, etc.) and dematerialised
offers suitable for processing all means of payment (cheques,
> International operations
The Crédit Coopératif Group is equipped to provide financial
exchanges at an international level and accompany its clients’
activities, thanks to experts at the headquarters and a worldwide
network of correspondents: buying and selling other currencies,
guarantees, documentary credits – via the Coopimport online
service –, standby letters of credit, advances in other currencies,
assignment of receivables against clients in other countries,
Coface export or import insurance, etc. The volume of activities
grew by 4% in 2008. Crédit Coopératif owns an efficient
management tool to process payments to or from all countries.
For exchanges between European Union countries, it uses the
STEP 1 and STEP 2 compensation systems provided by the Euro
banking association (EBA). These operations will doubtless be
among the first concerned by implementation of a single euro
payment area (Sepa).
1.3.4 Financial engineering
Specialised departments or companies in the Group accompany
firms and associative or mutualist organisations in their
operations involving financial restructuring, development and
diversification, management of liabilities, creation of
subsidiaries, transfers, etc.
43
ESFIN-IDES
The Esfin-Ides Group provides equity capital for entities in
the socially responsible economy, especially cooperatives
(Ides) and small and medium-sized firms in all sectors of
activity (Esfin Participations).
In particular, Esfin Participations and Ides intervene to
provide responses, in liaison with the other entities in the
Crédit Coopératif Group and its partners, to problems of
transfer of firms and financing growth; they are designed
with medium- and long-term objectives in mind, and in
partnership with the shareholders and the management
teams of the structures concerned.
In 2008, Ides invested €2.8 million in 15 dossiers involving
Scop cooperative companies,
SCIC cooperative companies in the public interest, or
members in cooperatives of retailers or subsidiaries of
associations. For its part, Esfin Participations acquired
holdings in the capital of five firms and strengthened its
presence in eight others already in its portfolio, for a total
amount of almost €5,1 million.
For its part, the Esfin holding company strengthened its
holding in Ile de France Capital, invested €200,000 in an
Internet portal designed for personal services, and invested
€750,000 alongside Crédit Coopératif to finance a major
consumer cooperative in Catalonia.
BTP CAPITAL CONSEIL
BTP Capital Conseil, a subsidiary in which BTP Banque has an
80% holding, is specialised in transfers of building and civil
engineering firms On the strength of its experience and
knowledge of the SME sector in building and civil engineering
activities, it plays a major part on the market of transfer of
firms in the sector. BTP Capital Conseil provides consulting
advice as to company values, examines the various transfer
solutions and puts forward legal and financial set-ups. It
also carries out activities to set up links, seeking a purchaser
or a seller under the best conditions of success and
confidentiality, on the basis of remits signed by the sellers.
In 2008, an agreement was signed between BTP Banque, BTP
Capital Conseil and the SMA Group to facilitate transfer of
firms in the building and civil engineering sectors. More than
a hundred entrepreneurs were seen during the year via the
branches in the BTP Banque network, and also with support
from the departmental building federations, and this
translated into signing 11 advisory or evaluation missions, 9
selling missions and 92 financing files examined by BTP
Banque, 49 of which are currently being put into practice
BTP CAPITAL INVESTISSEMENT
BTP Capital Investissement provides equity and quasi equity
capital for SMEs in the building and civil engineering sector. It
occupies a special position, thanks to its far-reaching knowledge
of the sector, which means that it is often asked to take part in
discussions held by other venture capital companies when
SMEs in the building and civil engineering sectors are concerned.
Its activities are centred on operations involving LBOs (primary
or secondary), development capital or acquisitions of minority
44
stakes, and they make BTP Capital Investissement a special
partner in dealing with transfer, development or the long-term
future of SMEs in the building and civil engineering sector. Its
interventions cover amounts varying from €100,000 to
€1,000,000.
1.3.5 Social engineering
Staff savings schemes constitute a transverse activity at Crédit
Coopératif, which is aimed at commercial concerns and the
associative, non-commercial sector alike.
Through this activity, Crédit Coopératif provides advice and
solutions for its clients who attach considerable importance to
their remuneration policy and the dynamism of the wage policy.
It helps them to implement employee investment agreements
and Plan d’Epargne d’Entreprise (PEE – Company savings
schemes) or plan d’épargne retraite collectif (PERCO – joint
retirement savings schemes), in partnership with Natixis
Interépargne, a specialised subsidiary of the Banque Populaire
Group and the leader in France for staff savings schemes. In
similar ways and since the beginning of the 2008 financial year,
it has put forward retirement savings solutions in the form of
joint insurance contracts (article 83 of the French Tax Code). It
also suggests ways of handling end-of-career compensation via
a contract that enables tax optimisation and also smoothes out
cash flow. These contracts stem from the partnership with
Assurances Banques Populaires.
2008 closed with an increase of 19% in the employee savings
portfolio and almost 40% in the number of employees
benefiting from the scheme. 2008 also saw commercialisation
of the first contracts covering management of retirement
bonus schemes, with the initial contracts signed representing
more than €500,000 in premiums paid in at the time
of subscription.
In 2009, Crédit Coopératif will confirm its determination to
accompany its customer firms in social engineering and
provide them with useful advice about the opportunities
stemming from the French law on income from work. It will
also carry out special actions aimed at the non-trading sector
that is also strongly concerned by some of these provisions.
1.3.6 Insurance
The French law of 15 December 2005 and its application order
of 30 August 2006 set out the basic rules to be complied with
by all insurance brokers. Crédit Coopératif, whose articles of
association include its capacity as an insurance broker, complied
with the new provisions. This means in particular that it has the
professional skills at its disposal to carry out the activity, and
that it is required to motivate the advice given to its clients. A
major training programme was thus set up in 2007 and 2008
for the branch managers, account executives and staff
distributing insurance products.
In 2008, the insurance activities carried out by Crédit Coopératif
led to almost 9,000 contracts being taken out, almost 7,000 of
which were death and disability insurance contracts linked to
loans taken out by private individuals and professional clients,
1,600 SECURIVAL insurance contracts guaranteeing means of
payment, and 847 Key Persons contracts.
Annual Report 2008
2. Social and environmental
responsibility
2.1 A COOPERATIVE
AND PARTNER BANKCrédit Coopératif is a French national cooperative bank that
relies on its members to bring life on an everyday basis to
the cooperative principles to which it is strongly attached.
2.1.1 Cooperative principles
According to the definition drawn up by the International
Cooperative Alliance (ICA), a cooperative is an autonomous
association of persons deliberately brought together to satisfy
their shared economic, social and cultural aims and
requirements via a jointly owned firm in which power is
exercised democratically
The cooperative principles adopted by the ACI constitute
guidelines that enable cooperatives to put their values into
practice. There are seven:
1. Freedom to join
2. Democratic management
3. Economic participation of the members
4. Autonomy and independence
5. Education, training and information
6. Cooperation between cooperatives
7. Commitments to the community
In France, these international principles take the form of
specific provisions governing operation of cooperatives, as set
out in the law dated 10 September 1947 concerning the status
of cooperation:
- Twin statuses: Crédit Coopératif is owned by its members,
who enjoy twin statuses as partners and users, owners and
clients of their bank. The members of Crédit Coopératif, most
of which are legal entities forming part of the social economy
(associations, cooperatives or members of cooperatives,
mutual health or other insurance companies, social housing
organisations, etc.),are entitled to attend the general
assemblies of Crédit Coopératif.
- Freedom to join: in accordance with the principle of freedom
to join, any client can become a member of Crédit Coopératif,
provided that he or she meets the criteria set out in the
articles of association and is approved by the Board of
Directors. At Crédit Coopératif, membership status is limited
to client legal entities.
- The “one person, one vote” rule: All members hold the same
voting rights during General Meetings, in accordance with
the cooperative principle of “one person, one vote”, whatever
the number of shares they hold. In 2008, almost 12% of the
members attended the general assembly or voted by
correspondence.
- Non-shareable reserves: each year, a significant fraction of
Crédit Coopératif’s earnings are set aside as reserves
(2.8 million euros in 2008, i.e. 15% of the profits after tax).
These reserves cannot be shared out: they are the collective
property of the current and future members and the joint
heritage of earlier generations. They can only be shared out
among the members under certain exceptional circumstances.
- Limited capital remuneration: Part of the annual earnings
can be paid out to the members in the form of a remuneration
concerning the shares they hold (12.7 million euros in 2008
for B and C shares, i.e. a remuneration amounting to 3.6% of
the nominal share value1). In accordance with the principle
of limited capital remuneration, shares in a cooperative
cannot receive remuneration above the average return on
bonds (taux moyen de rendement obligataire – TMO in
French), which stood at 4.46% for the second half of 2008.
- Cooperative rebate: Crédit Coopératif can also redistribute
part of its annual earnings in the form of a cooperative
rebate paid out to its members, in proportion to the value of
the transactions made with each member. The amount paid
out by Crédit Coopératif in the form of a cooperative rebate
stood at €750,000, taken from the earnings for 20081.
(1) Subject to the approval of the general meeting called to decide whether to
approve the accounts for the 2008 financial year.
2.1.2 A company model based
on partnership
The members of Crédit Coopératif are very widely organised
into movements that take part in its decision-making or
consultative bodies. Crédit Coopératif was set up, and
continues to grow, on the basis of this model involving
triangular relationships between the bank, members and their
professional federations.
This partnership relationship is essential for Crédit Coopératif
and it is to be found at all its operating levels. The composition
of the Board of Directors of Crédit Coopératif provides a good
example., Another good example can be found in the number
of partnerships set up: in 2008, thirty or so partnerships were
set up or continued, in all Crédit Coopératif’s fields of activity
(health and social affairs, integration and socially responsible
economy, education and leisure activities, SCOPs, SMEs,
45
sustainable development, distribution, social housing, works
committees, etc.).
The main partnerships entered into
by Crédit Coopératif in 2008
Among the partnerships renewed in 2008, we can mention
the following in particular:
- Renewal of the partnership entered into with the
Association pour le Droit à l’Initiative Economique (ADIE –
Association for the right to take economic initiatives),
determining the general framework of relations, the
modalities for application of the agreements signed
between the two partners and sponsoring creation of the
«ADIGO» ADIE agency in Toulouse,
- Renewal of the partnership entered into with the Fédération
of Associated Trade Brands to organise the Associated
Trade Meetings in 2008,
- Renewal of the partnership entered into with France Active
with a view to making a contribution to the development
of France Active and its local funds, together with
development of the offer concerning guarantees and
investments of equity and quasi-equity capital made by the
association on behalf of the players dealing with integration
and the socially responsible economy.
- Signature of a framework partnership agreement with the
General confederation of SCOPs during the SCOP
Convention in Poitiers.
Among the new partnerships entered into by Crédit Coopératif
in 2008, we can mention the following in particular:
- A partnership to set up the Fondation internationale du
Handicap (International handicap foundation), recognised
as being in the public interest, within the framework of an
initial allocation.
- A partnership with the Confédération Permanente des
Coordinations Associatives (CPCA – Permanent
Confederation of Associative Coordinations) in order to
provide support for the actions organised by the CPCA,
- A partnership with the Comité National des Entreprises
d’Insertion (CNEI – French National Committee of Integration
Firms) to support the work to draw up a vade mecum of good
practices and cooperation between integration firms and
their economic environments.
- A partnership with FNCUMA and COOP de France to provide
support for a study concerning investment opportunities
in photovoltaic cells for farming cooperatives.
- Numerous partnerships concerning «personal micro-loans»,
in particular with Crédit Municipal de Paris and the
«SOMUDIMEC» financial cooperative.
The partnerships entered into and maintained by Crédit Coopératif
with these professional federations enable it to draw up an offer
that suits their members’ requirements and, where applicable, to
create financial tools specifically designed for them.
At the request of some partner federations, Crédit Coopératif
has set up financial cooperatives that intervene mainly to
46
provide guarantees for the loans made by Crédit Coopératif to
firms that are members of a federation, a sector or a region.
Crédit Coopératif ensures the solvability of these financial
establishments, via an association contract.
Crédit Coopératif relies on these financial cooperatives, managed
by the professional federations concerned, to develop its activities
in certain sectors or regions, making the most of the expertise and
experience of heads of firms involved in management of the
dedicated financial tools.
The heads of the firms in turn find in Crédit Coopératif a partner
ready to trust their judgement and enter into commitments
alongside them to help to develop a sector of activity or a local
economic network.
Crédit Coopératif has also set up sectoral guarantee funds to
finance the associative sector: This is thorough case in particular
for the FGMTLS, the mutual guarantee fund for social tourism,
managed by the UCEL association, which brings representatives
of the sector together.
2.2 SOCIALLY RESPONSIBLE FINANCING
AND MICROFINANCING2.2.1 Crédit Coopératif,
a bank in socially responsible financing
The Crédit Coopératif Group is a pioneer in socially responsible
finance, of which it implements various aspects: collecting
socially responsible savings, implementing socially responsible
financing, providing technical support for operators in the field
of socially responsible financing. It provides promotion for the
principle not only in France, but also over a far wider base in
eastern Europe, and in some cases in southern Europe.
This is not by chance, because by definition a cooperative is a
concrete example of socially responsible economic behaviour,
and also because Crédit Coopératif is the banker for firms in the
socially responsible economy that play a major part among the
socially responsible actors.
In this respect, within the Banque Populaire Group, it has been
entrusted with a national mission in the field of the socially
responsible economy.
> Ethical and socially responsible savings
Crédit Coopératif is a pioneer in socially responsible savings
because as early as 1983, it launched the first shared
investment scheme, Hunger and Development. It now puts
forward a full range of socially responsible banking products
and it plays a leading role in the sector in France.
The products of socially responsible savings, whether they
stem from sharing or investment, enable those intervening in
the fields of humanitarian action, integration, or development
aid, to collect recurrent resources, widen their donor base, and
enhance donor loyalty.
Crédit Coopératif provides the widest range of socially
responsible products with 17 products bearing Finansol
certification. This quality label, which is awarded by an
independent committee, recognises their socially responsible
nature, transparency and seriousness (www.finansol.org).
The beneficiaries of Crédit Coopératif shared products
Annual Report 2008
collected more than 3.9 million euros in donations sin 2008,
taking the total amount of donations received since the first
shared product was set up to over 33 million euros. More
than 40% of Crédit Coopératif’s private individual clients
hold a socially responsible product.
> The bank for players in socially responsible credit
Partenaire des acteurs du crédit solidaire, le Crédit Coopératif
As a partner of the players in socially responsible credit, Crédit
Coopératif ensures in particular, vis-à-vis the supervisory
authorities, the liquidity and solvency of the Caisse Solidaire
du Nord Pas de Calais and the Société financière de la Nef. It is
a founder member of Sofinei, société de financement pour les
entreprises d’insertion (financing company for integration
firms), and the France Active association. It earmarks almost a
quarter of the amounts guaranteed by the France Active
network, for micro-entrepreneurs and integration firms.
Crédit Coopératif is also a member of www.fir.asso.frréseau
national FIR (France Initiative Réseau national network), and it
takes action with Plate-formes d’Initiative Locale (PFIL – Local
initiative platforms), to provide support for creation and
transfer of firms.
Moving beyond these professional credits, Crédit Coopératif is
entitled, as part of the social cohesion plan, to grant loans
guaranteed by the fund managed by Caisse des dépôts and
participates in the social personal loan system.
> Promoting socially responsible financing in Europe
The Crédit Coopératif socially responsible and alternative
financing mission has taken part in development of socially
responsible financing in Europe since 2001. A founder member
of Fédération Européenne des Finances et Banques Éthiques et
Alternatives (Febea), which brings together 25 financial
institutions spread over 13 countries in Europe, Crédit
Coopératif creates shared tools for the federation’s members:
- Garantie Solidaire, a mutual guarantee fund for socially
responsible loans;
- The Choix Solidaire and Confiance Solidaire mutual funds, part
of whose portfolio is invested in socially responsible firms;
- Sefea, a venture capital company set up with the members of
Febea, to acquire holdings in European socially responsible firms.
2.2.2 Crédit Coopératif, an original player
in microfinancing
Of course, Crédit Coopératif has entered into undertakings on
microfinance, as can be seen in its numerous initiatives and
the wide range of tools it has developed in France and in other
countries. In many ways, microfinance plays a major role in
development or renewal of the socially responsible economy
in emerging countries. Crédit Coopératif has fully grasped the
fact and has made progress on several fronts in the sector.
- In France, Crédit Coopératif is a historic partner of l’ADIE
(Association pour le Droit à l’Initiative Économique –
Association for the right to economic initiatives), which has
refinancing lines at its disposal for the loans it grants to its
own clients. To provide support for ADIE’s actions, Crédit
Coopératif has set up COD’Adie, a socially responsible
sustainable development savings scheme placed at the
service of microcredit. Crédit Coopératif also lends directly
to micro-entrepreneurs accompanied by the networks in
which it is a partner and which provide their guarantees. It
was the first banking group to sign the Charter for
distribution of loans to start-ups.
- At an international level, Crédit Coopératif became involved in
microfinance as early as 1987 via its Foundation, by providing
support for the creation of Kafo Jiginew, a network of
cooperative savings and loan institutions in Mali. Kafo Jiginew
benefited from the Crédit Coopératif Group’s banking expertise
when developing its network. Kafo Jigninew is currently made
up of 131 institutions with almost 240,000 members, and
loans outstanding of over €20 M.
- To provide support for organisations dealing with microfinance
outside France, Crédit Coopératif was the first bank to develop
socially responsible savings products. The Faim et
Développement mutual fund, set up in 1983, enables savers to
share their annual interest payments with the CCFD (Comité
Catholique contre la Faim et pour le Développement – Catholic
committee against hunger and for development), in the form
of donations to SIDI (Solidarité Internationale pour le
Développement et l’Investissement – International solidarity
for development and investment). Via shared funds and
socially responsible investment funds managed by ECOFI
Investissement, Crédit Coopératif also finances ACTED (Agence
d’Aide à la Coopération Technique et au Développement –
Technical cooperation and development aid agency) and the
GRET (Groupe de Recherche et d’Echange Technologique –
Technological research and exchange group).
- As from 2004, Crédit Coopératif took action alongside
international financial institutions in specialised funds
such as Global Microfinance Facility, a refinancing fund
managed by IMF (Institutions de Microfinance) and the
European Fund for Southeast Europe, and investment fund
dedicated to microfinance in the Balkans. Crédit Coopératif
participated in setting up these funds and also as the main
private banking investor.
On the strength of this prior experience, and together with
major players in socially responsible finance in Europe, Crédit
Coopératif co-founded the Coopest investment company, in
which it has a 33% holding. This structure was set up to
encourage economic activities and initiatives in the socially
responsible economy (associations, foundations, cooperatives
and mutual organisations) and micro-entrepreneurs in eastern
and central Europe. Coopest provides long-term financing and
quasi-equity capital via financial intermediaries. More than
half the Coopest portfolio is invested in microfinance.
At the end of 2007, Crédit Coopératif redirected its microfinance strategy towards acquiring direct holdings. The IMF
microfinance institutions targeted are mainly socially
responsible economy structures that intervene in rural areas
in various regions of Africa, Eastern Europe and the Middle
East. The funds provided usually range between €300 and
€700,000, with a position as a minority shareholder and a
long-term exit strategy. For these activities, Crédit Coopératif
works in partnership with technical operators such as SIDI or
Etimos, institutions of which it is a founder member and
whose object is to pool skills and expertises in the field of
47
microfinance, micro-insurance and fair trading. It also
encourages joint investments alongside specialised
organisations such as Investisseur & Partenaire. In 2008,
Crédit Coopératif subscribed capital in a rural IMF in Kosovo,
KRK, in partnership with SIDI, ADIE International and EFSE.
Crédit Coopératif has also encouraged innovation in the
microfinance field by providing support for the Babyloan peerto-peer micro-loan platform. This site is the first of its kind in
France, and it enables Internet users who so wish to sponsor a
micro-entrepreneur via a small loan to a partner microfinance
institution financing the entrepreneur.
At a European level, Crédit Coopératif is the biggest/first
member bank in the European Microfinance Network set up
by Maria Nowak.
2.3 HUMAN RESOURCES2.3.1 GROWING AND RECRUITING
In 2008, the Group continued to renew and add to its staff
with 1,905 staff members2 at 31 December, i.e. an increase
of 5.2% since the previous year.
Of the 311 staff members taken on (51.4% on permanent
contracts), 62% were given customer relation jobs.
Professional integration of apprentices showed further
enhancement, with 33 contracts signed.
The Group’s stronger presence among schools and universities,
in the form of numerous agreements, enabled it to widen its
recruitment base and diversify the diplomas studied by the
trainees taken on. These actions help to renew generations
and adapt the initial training requirements.
Far-reaching work has been carried out with organisations
and structures in charge of integrating disabled people,
leading to recruitment of disabled staff, and concrete
partnerships with specialised establishments. Eleven staff
members were taken on in this way in 2008, and seven of
them were confirmed in their jobs (recognition of new disabled
staff members); two partnerships were signed with ESAT
training centres for the disabled. Lastly, a Disability mission
was set up and two referral agents were appointed in the
Human Resources Department.
(2) Staff in the Crédit Coopératif UES, made up of Crédit Coopératif, BTP Banque and
Ecofi Investissements.
2.3.2 DEVELOPING SKILLS
In 2008, training was impacted by ongoing application of the
new legal and regulatory requirements (MIF, AERAS, insurance
intermediation, combat against money laundering, prevention
of risks of nonconformity, etc.).
To meet training requirements covering all the Group’s staff,
distance training courses were continued, especially in the
network. This enabled more than 660 staff members to take
the MIF training course, and about the same number followed
the AERAS courses.
Training reflects the employer’s commitment to accompany
development of professional skills among staff members.
In 2008, about a hundred candidates underwent training
leading to a diploma.
2008 was an exceptional year in terms of the success seen by
48
Group staff members who took various examinations. All the staff
members in their second year of ITB studies passed their final
examinations. Moreover, two female staff members obtained
“national major” classifications in their respective courses, one
with a diploma from the Centre d’Etudes supérieures de Banque
in “Administration of assets”, and the other with the Institut
Technique de Banque. These individual successes would not be
possible without teamwork, and they highlight the pertinence of
the diploma courses selected and the accompanying teaching
structures that have been implemented.
However, training also stands for the development of the
cooperative culture and the distinguishing characteristics of the
social economy, with the involvement of branch directors and
advisers to ensure optimum dissemination among employees of
this highly specific culture which sets Crédit Coopératif apart
from other cooperative banks. This specific corporate culture is
also relayed to new staff taken on by the Group, during
“Knowledge of the Group” training seminars, which about a
hundred new staff members were invited to attend in 2008.
2.3.3 REMUNERATING - REDISTRIBUTING
An responsible wage policy has been implemented in the Crédit
Coopératif UES. A blanket increase was applied to all the staff
members, other than those in the “outside classification” categories.
Moving beyond collective agreements, recognition of skills and
achievements among the Group’s staff has been described within
the framework of a wage policy that has enabled more than 45%
of the staff to benefit from an individual pay rise in 2008.
Performance bonuses, for their part, again concerned almost 70%
of the staff at the headquarters and in the networks in 2008.
Fresh steps towards parity were confirmed in 2008. Among the
changes in classification, female staff accounted for 61% of the
promotions and 80% of the staff acquiring executive status.
Nonetheless, this is a major concern that has to be given all the
attention it deserves: There is still plenty of room for progress in
the field.
2008 was the first year in which staff at the Crédit Coopératif UES
benefited from application of the employee profit-sharing
scheme signed on 29 June 2007. An overall amount of €6.1 M
was divided up among them in June 2008, i.e. an average amount
of €3,244 per beneficiary. On an individual basis, the amounts
distributed represented at least a month’s gross basic salary for
85% of the beneficiaries.
In 2008, the negotiations held between the Company and its staff
and union representatives again led to signature of agreements
on 30 May 2008:
• An agreement covering meal vouchers, increasing the unit
face value of the vouchers to €8 and the proportion financed
by the employer to 60%;
• An agreement covering payment of an exceptional bonus
known as the “petrol bonus”, to staff members who were paid
mileage allowances in 2007 because they had to use their
personal vehicles for professional travel.
Moreover, social dialogue continued in the second half of
2008 with opening of negotiations concerning implementation
of a Plan d’Epargne pour la Retraite Collectif (PERCO –
Collective retirement savings plan); the negotiations are to
continue in 2009.
Annual Report 2008
2.4 ENVIRONMENTAL IMPACTS OF THE ACTIVITYCrédit Coopératif is concerned by environmental questions It
does all in its power to develop its environmental approach
by limiting the direct impacts of its activity, and above all
indirectly by providing environmentally orientated products
for its clients and by providing banking services that suit the
players in the environmental protection field. Crédit
Coopératif’s backing for actors in the environment sector
takes the form of partnerships.
2.4.1 MANAGING DIRECT
ENVIRONMENTAL IMPACTS
> Key figures for 2008
Total water consumption at headquarters: ....... 10,374 cu. m
Water consumption per business day
and per resident at headquarters: .................................. 59 litres
Total electricity consumption at headquarters: 5,681,980 kwh
Quantity of paper consumed
(at the Group level): ............................................................... 80 tons
> Achievements in 2008
Responsible treatment of waste
Since January 2007, the headquarters has set up a sorting
system for paper and cardboard. An extension of the system
to the network of branches is being studied for 2009; to
recycle its waste paper, Crédit Coopératif has called on the
ELISE Company, a specialised integration enterprise.
Crédit Coopératif also encourages its staff to collect and
recycle plastic caps and batteries. The caps are recycled by
the Handi – Cap- Prévention Association, which helps the
disabled in their everyday life by providing equipment to suit
their disabilities.
Reviewing the procurement policy
Crédit Coopératif has modified its procurement policy to
enhance compliance with environmental criteria.
Its procurement policy was also changed in 2008 through
implementation of an ecological Intranet catalogue of office
supplies and computer consumables. The new management
system has enabled a reduction in the number of references,
and implementation of consumption indicators, while providing
a full catalogue that contains 76% of ecological references.
In 2008, the Annecy branch subscribed to the green electricity
offer put forward by ENERCOOP. Born of an active campaign
carried out in 2005, ENERCOOP is currently the first cooperative
supplier in France providing energy from 100% renewable
sources.
Transport
Crédit Coopératif is continuing to renew its fleet of vehicles,
giving priority to clean vehicles. In its fleet of 39 vehicles as
at 31 January 2008, 21 had CO2 emission levels of less than
130 g per kilometre.
Furthermore, Crédit Coopératif continues to draw up a list of
the business travel and trips made by the staff, to put
forward alternatives to travelling whenever possible.
Business trips by car represented 3,266,998 km in 2008. The
trips corresponded to travel to and from work, and to
contacts with clients. Videoconference systems have been
installed at headquarters and the Opéra branch, and they
will be deployed progressively in Crédit Coopératif’s general
delegations to provide an alternative to travel and develop
the practice of distance training, in particular.
« Eco-communication »
Most of the Group’s institutional and commercial communication
documents (annual report, commercial brochures, publications
sent out to members, etc.) are printed on paper that respects the
environment and using plant-based inks. Priority is given to
production of electronic documents. Electronic versions of the
annual reports are available on the Internet and on CD-ROMs.
The promotional objects handed out during Crédit Coopératif
special events in 2008, together with the office supplies, respect
the environment: pens made of recycled materials, organic cotton
bags, “post-it” notepads made of recycled paper, light-powered
calculators, baskets with fair trade products, etc. The badges given
to people attending shows and conventions are made from
biomaterials obtained from maize, and they are systematically
recovered after the events.
Carbon footprint
At the end of 2008, the Crédit Coopératif Group undertook an
evaluation of the carbon dioxide emissions resulting from its
activities within the framework of a carbon footprint analysis. The
carbon footprint analysis will enable implementation in 2009 of
an action plan to reduce greenhouse gas emission levels.
Moreover, Crédit Coopératif has set up a system to calculate
and compensate for the carbon impact of its cooperative
activities. The number of kilometres covered by members to
attend their general meetings amounted to 318,012 km in 2008;
this represents about 67.2 t.eq.C02. To compensate for these
emissions, Crédit Coopératif has decided to support the “CO2
Solidaire” programme run by GERES (Groupe Energies
Renouvelables, Environnement et Solidarités – Renewable
energy sources, environment and solidarity group) by making a
donation corresponding to the carbon value of the quantities
given off due to travel to attend its general meetings.
Renovations and property
The network of Crédit Coopératif branches is undergoing a
major renovation programme. The improvement work
covered 23 sites in 2008. A property renovation charter has
been drawn up to integrate sustainable development criteria
(choice of materials, computer equipment, consumption
levels, etc.) and accessibility for the disabled. Completion of
renovation work in all the branches is planned by 2012.
Crédit Coopératif’s headquarters are to be renovated under a
project complying with the High Environmental Quality
(HEQ) standards, and while the work is being carried out, a
temporary installation is planned as from May 2009.
Renovation work on the headquarters will start on 1 July
2009 and the planned date for moving back into the building
is during the first quarter of 2012.
49
> Fostering awareness of environmental issues among
members
Crédit Coopératif encourages good environmental practices
among its client members:
The Prix et Trophée de l’Initiative en Économie Sociale
competition, organised for over 20 years by the Fondation
Crédit Coopératif, frequently rewards exemplary projects
carried out by players in the socially responsible economy,
especially in the field of sustainable development, and gives
pride of place during general meetings to the people behind
the projects. In 2008, two projects linked to energy savings
were among the national winners:
The SCIC Energies renouvelables et environnement de la
Haute-Loire (ERE 43) which enhances awareness in the
general public concerning emerging technologies (solarpowered heating, wood pellets, hydro-accumulation, etc.)
The Blue Energy France association, which manages
electrification projects using renewable energy sources
in developing countries.
Furthermore, member awareness of environmental concerns
is enhanced during regional forums held annually after the
general meetings. In 2008, 4 regions decided to base their
forums on the theme of sustainable development.
- Brest: “From Brest to Kyoto: solidarity and citizen involvement”
- Limoges: “Sustainable development, opportunities for the
socially responsible economy in the region around Limoges”
- Orléans: “Responsible consumption: a fad or a priority? “
- Strasbourg: “Protection of the environment, a question of
citizenship: the example of housing
The Crédit Coopératif Internet site www.agiravec
lecreditcooperatif.coop is a vector of information and
awareness enhancement concerning the actions carried out
by its partners in favour of sustainable agriculture,
biodiversity, protection of mountain regions and the oceans,
and renewable energy sources.
Lastly, in partnership with the Graines de changement
information agency, Crédit Coopératif provided support for
the launch of an Internet site giving information on responsible
consumption: www.mescoursespourlaplanete.com
It is also a partner of the directory site
www.lemarchecitoyen.net
2.4.2 CRÉDIT COOPÉRATIF PRODUCTS
WITH AN ENVIRONMENTAL PURPOSE
Crédit Coopératif accompanies its clients’ environmental
approaches by providing them with products that are
oriented towards financing for ecological projects and by
facilitating access to environmental diagnosis procedures.
A pioneer in socially responsible savings in France, Crédit
Coopératif is also developing products that can give
savings an ecological dimension.
> Staff training
Crédit Coopératif has begun to implement an awareness
enhancement and training policy among its staff concerning
the main themes of sustainable development.
50
As a further element to the one-day awareness enhancement
training sessions organised in 2007, concerning sustainable
development, Crédit Coopératif has implemented an internal
newsletter dedicated to environment activities and aimed at
client company account executives. The letter provides them
with the information necessary to accompany their clients
and prospects in their environmental procedures.
In 2008, Crédit Coopératif attended 23 shows and
conventions focusing on eco-housing or renewable energy
sources. The Crédit Coopératif teams were given training to
enable them to make the most of the shows.
> Financing ecological equipment
With PREVair for private individuals and PREVair for legal
entities, Crédit Coopératif finances, at attractive rates,
ecological equipment for eco-housing and investments of
an environmental nature made by its clients. The CODEVair is a
savings passbook with FINANSOL approval, and whose funds
collected are dedicated to financing investments of an
environmental nature. It is aimed at private individuals and nonprofit-making organisations. PREVair and CODEVair are derived
from products developed by the Banque Populaire Group.
With the Euro 5 offer, Crédit Coopératif also provides classic
loans or leasing at preferential rates for carriers, to help
them to finance vehicles that anticipate the Euro 5 standard.
With its partner Natixis LLD, Crédit Coopératif is developing
turnkey solutions covering long-term motor vehicle rental,
thus enabling businesses and associations to outsource
management of their motor vehicle fleets. A bonus of €250,
called CHEQVair, is paid out for each rental of a vehicle
whose CO2 emission levels do not exceed 140 g per Km
> Eco-housing
Crédit Coopératif has applied an active policy in favour of
eco-housing for several years. It provides physical persons
with the ecological criteria taken into account when setting
their property loan interest rates. The project study grid lists
26 eco-housing criteria.
> Shared products
The Agir pour la planète range supports organisations active in
defending the environment, such as France Nature Environnement,
Fondation Energies pour le monde, Terre des Hommes, the WWF,
Echo-Mer, and the Surfrider Europe Foundation, through the
parties in the Agir range and other socially responsible products.
- The Agir card enables users to donate 6 eurocents to the partner
association of their choice each time they make a cash
withdrawal from an automatic teller machine.
- The Agir savings passbook suggests making a donation of 50%
of the annual interest accrued on the savings to the partner
association selected.
- With the Codesol, 50, 75 or 100% of the annual interest accrued
on the savings are donated to the partner association selected
by the client.
In 2008, the total amount of the donations made by Crédit
Coopératif and its clients to environmental protection associations
stood at 950,000 euros.
Annual Report 2008
> Socially responsible finance
Ecofi Investissements, a Crédit Coopératif subsidiary, has
made two mutual investment funds available that take the
themes of energy efficiency and renewable energy sources
into account in their investment process: Choix Solidaire and
Epargne Ethique Actions.
In 2008, the ethical and socially responsible range of Ecofi
Investissements products was widened to include a new
socially responsible fund: Ecofi Agir sustainable development.
Ecofi Agir sustainable development is committed to investing
5 to 10% of its balance outstanding in unlisted socially
responsible businesses, mainly those initiating activities in the
field of sustainable development. The rest is invested in listed
securities, shares (at least 60% of the portfolio) and interest
rate products (35% at most), selected in the light of sustainable
development or socially responsible investment criteria.
> Promotion of diagnosis procedures
Crédit Coopératif provides several products and services to
accompany business managers in their environmental
procedures.
As part of its partnership with the Riposte verte association,
Crédit Coopératif bears the travelling costs laid out by the
representatives of the association when they help businesses,
associations and local authorities to draw up an ecological
summary by diagnosing their operating methods.
In 2008, Crédit Coopératif signed an agreement with the
ADEME and the ACFCI to accompany SMEs and SMIs in their
environmental management procedures. Under the terms of
the agreement, Crédit Coopératif provides preferential
conditions for all businesses holding “1.2.3 Environment”
certification or the “EnVol” brand concerning a PREVair loan
for their environmental investments, with a 50% reduction
in the administrative fees, plus a 30% reduction in the main
account management fees.
Moreover, to encourage social responsibility in its clients
and prospects, Crédit Coopératif has joined the initiative
taken by Qualité-France, a French national quality control
association. Qualité-France has implemented a procedure
for identifying and certifying SMEs and SMIs with
commitments concerning the three pillars of sustainable
development (economic, social, and environmental): The
“Lucie” label. Crédit Coopératif enables businesses that have
obtained the label to access the PREVair Entreprises loan
system for investments of an environmental nature or
investments aimed at improving facilities for the disabled.
These businesses alternators benefit from a social
engineering diagnosis and a 30% reduction in account
management fees and turnover commissions.
2.4.3 THE BANKER FOR ACTORS DIRECTLY
CONCERNED WITH THE ENVIRONMENT
Crédit Coopératif supports and finances numerous initiatives
linked to renewable energy sources and energy savings,
waste treatment and recycling, and organic farming.
Crédit Coopératif finances several wind-energy developers,
and is currently considering many projects covering almost
every type of renewable energy (wind energy, solar cells,
hydroelectricity, energy from wood, methanisation), and in
all France’s regions.
It is also a partner of major environmental protection
federations such as the WWF, France Nature Environnement,
Réserves Naturelles de France, and Fédération des
Conservatoires d’Espaces Naturels, providing some of them
with funds from dedicated socially responsible savings
products.
It is also a member of the steering committee of the French
Foundation for research into biodiversity.
The Crédit Coopératif Group has adopted financing for ecoactivities as a major element in its corporate plan,
Coopéraction 2015.
2.4.4 CRÉDIT COOPÉRATIF PARTNERSHIPS WITH
ACTORS IN THE ENVIRONMENT SECTOR
Crédit Coopératif maintains partnership relations with
recognised actors in the environmental protection sector.
Crédit Coopératif is a member of the Syndicat des Energies
Renouvelables (SER – renewable energy board), with a seat on
its “wind energy” finance commission.
Crédit Coopératif is a member of Observ’ER, the renewable
energy source observatory with a strong presence at
a European level; Crédit Coopératif has a seat on its Board of
Trustees. - It is a partner and jury member of the Concours
Habitat Solaire Habitat d’Aujourd’hui, a competition in
bioclimatic and solar-energy architecture organised by
Observ’ER since 1989.
Crédit Coopératif is also a partner of Enercoop, a société
coopérative d’intérêt collectif (Scic), bringing together producers
and consumers of green electricity. By guaranteeing the
renewable origin and fair pricing of the electricity produced, this
cooperative enhances consumer awareness in making energy
choices within the framework of opening up the market and
contributes to development of renewable energy sources.
Crédit Coopératif has entered into undertakings with ADEME
by joining the Club planète gagnante in order to mobilise
citizens and enhance awareness among them concerning
climate change. It has also set up special relations with the
Regional ADEME Delegations as part of its business
accompaniment schemes.
Crédit Coopératif also supports the Prix Entreprises &
Environnement competitions, organised by the French Ministry
for the Ecology and Sustainable Development and Improvements,
awarded to businesses of every size and in every activity sector
that have undertaken creditable, environmentally-sound
measures to control and reduce the environmental impacts of
their activities and products or services.
Crédit Coopératif is a member of Comité 21, the ORSE and the
Orée association.
Crédit Coopératif is a founder member of the Entreprendre
pour le fluvial (Waterborne transport enterprises) association
set up in 2007 to encourage development of waterborne
transport, at the initiative of Voies Navigables de France, a
public authority in charge of management of the French
waterways network.
51
Crédit Coopératif is a founder member of Rencontres du
Mont-Blanc, meetings that bring together the heads of socially
responsible economy organisations from all over the world, to
develop international projects and ensure maximum visibility
for the socially responsible economy. Within the framework of
the third Rencontres du Mont-Blanc, on the theme of energy
concerns, Crédit Coopératif entered into the following
commitments:
•D
etermining a joint, trustworthy method to draw up
carbon footprint summaries and selecting a suitable
compensation system for meetings linked to the
democratic life of organisations in the socially responsible
economy,
• S etting up a working group with the Confédération
Permanente des Coordinations Associatives (CPCA –
Permanent Confederation of Associative Coordinations) to
examine changes to be made to the associative heritage.
2.5 FONDATION CREDIT COOPERATIFIn 2008, Fondation Crédit Coopératif began a new five-year
period running until 2012, with some fresh orientations.
Crédit Coopératif makes an annual allocation of 1.5 million
euros to the Foundation.
In 2008, the Foundation intensified its work in the field of
research into the socially responsible economy, with a view
to building a bridge between the results of the work carried
out by well-known research laboratories, on the one hand,
and the practical experience of the players and leaders on
the socially responsible economy on the other hand. Moving
beyond its support for the work done by the ADDES, it has
set up major new partnerships, in particular with the
Economics Centre as the Sorbonne (on the theme of
financing for associations), the PACA Cooperative College
and Fonda.
Promotion of the socially responsible economy translated
into the Prix Charles Gide (with a €5,000 grant), open to
students in journalism schools, and the Prix Jacques Moreau
(also with a €5,000 grant), which is open to journalists in the
52
written press. The Foundation has also set up links with the
Association des Sciences Po, to enhance awareness of the
careers possible within organisations in the socially
responsible economy.
The Foundation’s new partnerships cover sustainable
development (Champ des Cimes), prevention of exclusion
(Fédération des PACT-ARIM), and new forms of socially
responsible entrepreneurship (AVISE, Plate-Forme du
Commerce Equitable).
Protection of our heritage (partnerships with the Fondation
du Patrimoine and the Fédération des Ecomusées et musées
de société) and culture (Festival d’Avignon and Festival
lyrique d’Aix-en-Provence) are other lines of intervention for
the Foundation.
Ensuring full citizenship for the disabled through culture
and sport constitutes another theme in which the
Foundation takes action. In 2008, for the sixth consecutive
year since it was set up, it provided support for the
“Festival ORPHEE - Théâtre et Handicap”, of which it is the
main sponsor. In 2005, the Foundation also created the
Trophée Jean-Louis Calvino, which rewards each year a
sports federation or an affiliated club that has set itself apart
by taking remarkable steps in favour of integration of
disabled people in its activities. The trophy, which is worth
€7,500, was awarded to the Fédération Française d’Escrime
in 2008.
Because the socially responsible economy remains an
impressive laboratory for ideas and field experience, the
Foundation organised, for the 26th year running, the “Prix et
Trophée de l’Initiative en économie sociale” competition to
reward exemplary actions with high added social, economic
or cultural value, implemented in the regions by socially
responsible economy organisations (almost 500 application
files were sent in, and there were 40 regional winners and
6 national winners, with over €130,000 in prizes awarded).
These examples of actions show how the Foundation
implemented its orientations in 2008. During that year, the
number of partnerships set up by the Foundation more than
doubled as compared with 2007.
Annual Report 2008
3. Group Architecture
3.1 LEGAL STATUSCrédit Coopératif is a société coopérative anonyme de
banque populaire à capital variable [variable-capital
people’s-bank cooperative public limited company],
governed by the following legal provisions, concerning:
1.People’s banks (Monetary and financial code: article
L. 511-31, articles L. 512-1 to L. 512-8);
2.Cooperatives (French law n° 47-1775 dated 10 September
1947: articles 1 to 20);
3.Credit institutions (Monetary and financial code: articles
L. 511-1 to L. 511-43);
4.Investment service providers (Monetary and financial
code: articles L. 531-1 to L. 533-13);
5.Commercial companies, including provisions concerning
variable capital: (French Code of commerce: articles
L. 210-1 to L. 248-1);
6. Companies (French Civil code: articles 1832 to 1844-17).
As well as the legal provisions and the regulatory texts
drawn up for their application, Crédit Coopératif is also
governed by the following contractual provisions:
1.The decisions of a general nature, and more particularly
the decision relating to the system of guarantees for the
banques populaires network, issued by the Board of
Directors of the Banque Fédérale des Banques Populaires
under the powers delegated to it by Articles L. 511-30, L.
511-31, L. 512-11 and L. 512-12 of the Monetary and
Financial Code, and within the framework of the
agreement signed by Crédit Coopératif and the Banque
Fédérale des Banques Populaires;.
2.Crédit Coopératif’s articles of association as amended on
15 November 2006 to adapt them to the Breton Law of 26
July 2005 on business confidence and modernisation of
the economy.
3.The resolutions adopted during the General Meetings of
Crédit Coopératif;
4.The resolutions adopted by the Board of Directors of
3.2 SUBSIDIARIES AT 31 DECEMBER 2008In thousands of euros
BTP Banque
BTP Capital Conseil
TISE
Inter-Coop
Intercop Location
Bati Lease (Consolidated financial statements)
Balance sheet total
Net banking income
Net earnings
959,197
25,720
60
24,614
1,651
360,852
10,073
427,389
49,734
24,794
44
2,131
3,273
4,461
56
12,757
10,896
4,141
4
1,157
42
964
192
4,481
BTP BANQUE
The Banque du Bâtiment et des Travaux Publics is the
banking partner of thousands of business in these sectors
for which it knows the special needs perfectly well since,
created in 1919 at the initiative of building and civil
engineering trade unions, it works closely with professional
organisations, as can be seen in the composition of its
bodies. A professional and specialised bank, it concentrates
its activity on businesses and institutions in the sector, with
a network of 35 sales outlets and 185 employees. Its capital
is held by Crédit Coopératif, and it joined the Group in 1996;
it is also linked to it via an association agreement.
53
SUPERVISORY BOARD
Jean-Claude DETILLEUX, Chairman
Didier RIDORET, Vice-Chairman and Co-Chairman
Fédération Française du Bâtiment
represented by Jean-Yves ROBIN
Fédération Nationale des Travaux Publics
represented by Patrick BERNASCONI
Fédération Nationale des SCOP du BTP
represented by Jacques PETEY
Société Mutuelle d’Assurance du Bâtiment et des Travaux
Publics represented by Christian BAFFY
Caisse des Congés Payés du Bâtiment - Région
Paris Ile de France represented by Michel SENECHAL
Fédération Française du Bâtiment - Région
Paris Ile de France represented by Jean-Claude ALBARRAN
Congés Intempéries BTP Union des Caisses de France
represented by Jean Jacques RAUB
Georges RIGAUD, in his position as Chairman
of the FFB Regional Council
Crédit Coopératif represented by Philippe JEWTOUKOFF
ECOFI Investissements
represented by Christophe COUTURIER
represented by Gérard MATHERON
BTP Capital Conseil represented by Jean Marc WOLFF
Inter-Coop represented by Sandrine WEINBERG
BATI LEASE represented by Richard KURFÜRST
Philippe GHAZARIAN, representative elected by the staff
Daniel SAWKA, representative elected by the staff
Alain SIONNEAU, external corporate supervisor
WORKS COUNCIL REPRESENTATIVE
Gérard PERRET
MEMBERS OF THE EXECUTIVE BOARD
Claude LAVISSE, Chairman
André CADROT, General Manager
Pierre VALENTIN, General Manager
54
and socially responsible analysis – Ecofi Investissements
provides management based on conviction and backed up by
the pooled experience of its 18 managers, with a range of
monetary, bond and share UCITS, managed using fundamental,
quantitative, ethical and socially responsible principles.
BOARD OF DIRECTORS
Jean-Claude RAUB, Chairman
André BEQUART
Pierre DOMIN
Alain de VAUCRESSON
BTP Banque represented by Claude LAVISSE
BTP Capital Conseil represented by Pierre VALENTIN
Congés Intempéries BTP Union des Caisses de France
represented by Alain BERNARD, external corporate
supervisor
Crédit Coopératif represented by Jean-Claude DETILLEUX
Fédération Française du Bâtiment - Région
Paris Ile de France represented by Nicole CUVILLIER
Fédération Française du Bâtiment represented by
Didier RIDORET, External corporate supervisor
Fonds de Garantie des Assurances Obligatoires
de Dommages (FGAO) represented by Alain BOURDELAT
IDES Investissements represented by François SOULAGE
Inter-Coop represented by Bernard LABROUSSE
Prima SA represented by Jean CASTAGNE
INTERCOP LOCATION (formerly SICOMI-COOP)
represented by Philippe JEWTOUKOFF
Société Mutuelle d’Assurances BTP
represented by Pierre-Louis CARRON
Syndicat Entrepreneurs de Construction
Paris Ile de France represented by Alain TIELES
Union Centrale du Crédit Coopératif
represented by Bruno MAILLARD
MANAGING DIRECTOR
Christophe COUTURIER
DELEGATE MANAGING DIRECTOR
François LETT
STATUTORY AUDITORS
Incumbent
SOFIDEEC « Baker Tilly »
KPMG Audit
Alternate
Pascal BROUARD
Christian LAIRY
WORKS COUNCIL REPRESENTATIVE
Alain Pierre
ECOFI INVESTISSEMENTS
BTP CAPITAL CONSEIL
Ecofi Investissements is the asset management company of
the Crédit Coopératif Group. Active in the field for over
30 years, Ecofi Investissements is a société anonyme (joint
stock company) with capital of 4.4 million euros. It employs 64
people and manages 8.17 billion euros (at 31 December 2008).
Its products and services are commercialised among a clientele
of institutional investors and private clients via its distributor
partners and the Crédit Coopératif and BTP Banque networks.
Along four avenues of research – economic analysis and asset
allocation, financial analysis, quantitative analysis, and ethical
BTP Capital Conseil is specialised in consulting services
concerning transfer of firms in the building industry and civil
engineering On the strength of its experience and knowledge
of the SME sector in the building and civil engineering
activities, it plays a major part on the market of transfer of
firms in the sector. To do so, it relies mainly on the network of
BTP Banque branches and on the professional organisations in
the building and civil engineering sector.
STATUTORY AUDITORS
MAZARS & GUERARD
Annual Report 2008
BOARD OF DIRECTORS
Claude LAVISSE, Chairman
Crédit Coopératif represented by Alain-Camille JAN
BTP Banque represented by Eva DEKANY
BTP Capital Conseil represented by Gérard MATHERON
ESFIN Participations represented by Dominique de MARGERIE
CHAIRMAN OF THE SUPERVISORY BOARD
Karol SACHS
MANAGING DIRECTOR
Jean- Marc WOLFF
Inter-Coop is a property finance leasing company and a
Crédit Coopératif subsidiary, dedicated to professional
property, which now devotes its activity to managing its
asset base and to expanding its prior operations. Crédit
Coopératif now carries out its property leasing transactions
via BATI-LEASE. It is a Société par actions simplifiée
(simplified joint stock company), and its capital of 4,856,280
euros is held by Crédit Coopératif to which it is also linked
via an association agreement.
STATUTORY AUDITORS
SOFIDEEC « Baker Tilly », incumbent
Christian LAIRY, Alternate
BTP CAPITAL INVESTISSEMENT
BTP Capital Investissement, an 80% subsidiary of Crédit
Coopératif, is a venture capital company that invests in equity
capital in SMEs in building and civil engineering and related
sectors at the time of creation transactions, internal or external
growth or business transmission. This specialisation, the
presence in its capital and on its Board of Directors
of representatives in the profession, and the skills of its teams
make it a recognised actor in its market. At 31 December 2008,
its portfolio was comprised of 32 holding lines (in shares or
convertible bonds) invested in 30 companies or groups of
companies, and two venture capital mutual investment funds.
BOARD OF DIRECTORS
Dominique de MARGERIE, Chairman
Crédit Coopératif represented by Alain-Camille JAN
BTP Banque rrepresented by Claude LAVISSE
Crédit Foncier de France represented by Didier DORGERET
Oseo Financement represented by Hervé PICHEVIN
Fédération Française du Bâtiment represented by Bernard
COLOOS
Inter-Coop represented by Philippe JEWTOUKOFF
UCCC represented by Jean Marc WOLFF
Placoplâtre represented by Jean-Marie VAISSAIRE, External
corporate supervisor
SMA-BTP represented by Pierre-Louis CARRON, External
corporate supervisor
MANAGING DIRECTOR
Gérard MATHERON
STATUTORY AUDITORS
PICARLE & ASSOCIÉS, incumbent
Béatrice COQUEREAU, Alternate
TISE
TISE is the former venture capital subsidiary of the BISE, a
Polish bank in which Crédit Coopératif has a holding that it
sold to the DnB Nord Group in 2007. Crédit Coopératif bought
out the subsidiary in 2008. Tise’s vocation is to intervene in
guarantee or loan dossiers linked to financing of the sanitary
activities that are being developed in Poland, and more
generally to accompany Crédit Coopératif’s activities and
projects in Poland and elsewhere in Eastern Europe.
CHAIRMAN OF THE EXECUTIVE BOARD
Michal RADZIWILL
INTER-COOP
BOARD OF DIRECTORS
Philippe JEWTOUKOFF, Chairman
MANAGING DIRECTOR
Jean-Michel SANTERNE
INTERCOP LOCATION
Sicomi-coop, which has carried out extinctive management
since the end of the Sicomi system in 1996, transferred all its
property finance leasing contracts to INTER-COOP on 31
October 2008, and hence lost its certification as a financial
company It is now limited to a residual activity of property
rental under the INTERCOP-LOCATION name.
BOARD OF DIRECTORS
MANAGING DIRECTOR
Jean-Michel SANTERNE
Bati Lease
BATI-LEASE (formerly BATINOREST), a subsidiary in which Crédit
Coopératif has owned a 95% holding since early in 2006, is the
number one property finance leasing operator in the Nord - Pas
de Calais region, with an offer built around investment finance
for regional companies in the form of property finance leasing,
property loans and long-term leasing.
Located in Euralille, it is a public limited company, linked to
Crédit Coopératif by an association agreement since 2003, and
a subsidiary in which Crédit Coopératif has had a 95% holding
since early in 2006.
In 2008, under the new BATI-LEASE name, it has become the
property finance leasing operator for the CRÉDIT COOPÉRATIF
Group throughout France. BATI-LEASE is an establishment
associated with CRÉDIT COOPÉRATIF.
BOARD OF DIRECTORS
Richard KURFÜRST
Richard CHABIERSKI
Crédit Coopératif represented by Alain MILLARET
55
Inter-Coop represented by Jean-Michel SANTERNE
BTP Banque represented by Claude LAVISSE
Finorpa represented by Jean-Marie DUVIVIER
Région Nord-Pas de Calais represented by Rudy ELEGEEST
René DUFOUR
Régis NAYE
BATINOREST BAIL represented by Christophe LECORNE
MANAGING DIRECTOR
Richard KURFÜRST
3.3 ASSOCIATED NON-SUBSIDIARY INSTITUTIONSThe institutions associated with Crédit Coopératif are
autonomous companies that are legally linked to Credit
Coopératif by an association agreement. The agreement
stipulates that Crédit Coopératif is the guarantor of the
liquidity and solvency of these institutions and assists them
In thousands of euros
Balance sheet total capital Bank
Banque Edel (consolidated financial statements) 674,403
from an administrative and technical standpoint, in particular
to enable them to comply with their regulatory and prudential
obligations. Crédit Coopératif is not systematically present in
the capital of its associated institutions, but it draws up
consolidated financial statements that include them.
Commitments by the company Net banking income Net income
192,858
29,621
4,229
Financial lending companies
Caisse Solidaire
9,372
Société financière de la NEF (NEF financial society) 183,559
Gedex Distribution
14,774
Socorec
111,067
90
9,570
3,990
214,952
396
4,442
485
3,970
186
241
256
602
Companies providing guarantees
CMGM
Nord Financement
Sofigard
Sofindi
Sofirif
Sofiscop
Sofiscop Sud Est
Somudimec
Somupaca
20,161
26,946
4,858
9,199
32,514
6,682
3,859
123,673
15,412
364
695
100
235
514
196
118
1,495
331
23
188
15
0
19
38
4
-206
2
3,982
6,931
3,288
2,442
4,693
2,702
1,935
23,914
4,996
BANQUE EDEL
CAISSE SOLIDAIRE
Banque Edel is a general partnership managed as a partnership
between the E. Leclerc Movement and Crédit Coopératif. It is
mainly geared towards members of the E. Leclerc Movement,
its suppliers and consumers. It has a range of products and
services that are especially for companies in the distribution
sector. processing bank card payments, installing ACDs,
operating credits, investment products, etc. It is also interested
in individuals for whom it has primarily developed a specific
offer of personal loans. Edel employs 118 people. This is an
institution associated with Crédit Coopératif, which holds
33.94% of its capital.
This cooperative status establishment created in 1997, with
special participation from the Nord–Pas-de-Calais region, the
Caisse des Dépôts and Crédit Coopératif, collects local social
savings of over two years, which is not or hardly remunerated,
is for financing projects of high social use (creation of
companies – most often by job seekers –, support for
associations). Crédit Coopératif increased its capital holding in
Caisse Solidaire in 2007, becoming the reference shareholder
with 35.24% of voting rights. Caisse Solidaire employs 4
people, the State has approved it as a “caring company” and
its products bear the Finansol label. This is an establishment
associated with Crédit Coopératif.
CO-MANAGERS
Galec represented by Philippe MARQUET
Crédit Coopératif represented by Pierre VALENTIN
CHAIRMAN AND CHIEF EXECUTIVE
Patrice DUTHOIT
DELEGATE GENERAL MANAGER
Nicolas CHAIGNEAU
56
Annual Report 2008
SOCIÉTÉ FINANCIÈRE DE LA NEF
SOCOREC
Société financière de la Nef, set up in 1987 by the Nef (Nouvelle
Économie Fraternelle – New Fraternal Economy) association, is
a credit establishment associated with Crédit Coopératif,
which ensures its liquidity and solvency. It aims at bringing
together lenders and savers who want to share their links of
solidarity and responsibility pertaining to money. It finances
sustainable development projects, with high environmental
and social utility. An autonomous credit organisation
employing 43 people, it received the “caring company”
approval from the French State in 2003. Like Crédit Coopératif,
Société financière de la Nef is a founding member of Finansol
and Febea (Fédération Européenne des Finances et Banques
Éthiques et Alternatives). It offers a range of savings products
that it manages directly (capital subscription, term deposit
accounts and an original product: the NEF savings plan). It
also has a specific partnership with Crédit Coopératif, which
manages a checking account and a socially responsible
savings account on its behalf, distributed in its branches. In
2008, it continued to develop strongly, confirming its place as
a reference socially responsible financial establishment in
France. It is one of the main users of the mutual garantie
Solidaire guarantee funds, created within Febea and managed
on its behalf by Crédit Coopératif.
Created in 1963 by groups of merchants grouped together into
an organisation which today has become the Fédération des
enseignes du Commerce Associé (FCA), Socorec is a financial
company with cooperative status which facilitates access to
financing for its affiliate merchants, intervening in the areas of
engineering, credit and financial guarantee as well. It has
acquired, in 45 years of existence, experience and knowledge of
its clientele which makes it a privileged partner for groups and
their members. Socorec is an establishment associated with
Crédit Coopératif. It employs 20 people.
Philippe LECONTE
Jacky BLANC
GEDEX DISTRIBUTION
Gedex Distribution is a public limited company, created in
1975, which grants loans to members of its parent company,
Gedex, a cooperative of retail merchants in construction
materials and supplies for do-it-yourself work. As such, the
latter is a member of the Fédération des enseignes du
commerce associés (FCA) and is a group associated with
Socorec. Gedex Distribution is an institution associated with
CHAIRMAN AND CHIEF EXECUTIVE
Philippe JARRIER
DELEGATE GENERAL MANAGER
Yves MARTIN-DELAHAYE
CHAIRMAN OF THE BOARD OF DIRECTORS
Yves MARTIN-DELAHAYE
MANAGING DIRECTOR
Hervé AFFRET
CMGM
Caisse Mutuelle de Garantie de la Mécanique (CMGM) is the
financial tool of the Fédération des Industries Mécaniques and
its 39 affiliated professional unions, in association with the
Groupement des Industries françaises aéronautiques et
spatiales (GIFAS), Fédérations des Industries Electriques et
Electroniques, de la Fonderie et de la Fédération de la
Plasturgie. It advises and guarantees SMEs and SMIs that are
members of these federations and participates in financing
transactions in French and export markets (guarantees,
advances for markets, export pre-financing and investment
financing). Production against guarantee in 2008 stood at 20
million euros. CMGM has a mission to develop partnerships
with other federations in the industry and professional
associations. A mutual guarantee union, it is an establishment
associated with Crédit Coopératif. It employs 3 people.
CHAIRWOMAN OF THE BOARD OF DIRECTORS
Martine CLÉMENT
MANAGING DIRECTOR
Patrick GERION
NORD FINANCEMENT
This financial cooperative guarantees financing for SME/SMI in
industry and services in the Nord–Pas-de-Calais region. It was
founded in 1982 as a partnership between Crédit Coopératif and
Maison des Professions which has since become Entreprises et
Cités, the main group of professional organisations located in
Marcq-en-Baroeul. Nord Financement employs 4 people.
Production against guarantee in 2008 stood at over 21 million
euros. It is an establishment associated with Crédit Coopératif.
Gilbert HENNIQUE
Jean Louis AITZEGAGH
57
SOFIGARD
Sofigard is a financial cooperative for SMEs and SMIs.
Created in 1993 by the Medef du Gard, with the support of
the Perrier Group. It advises the SMEs and SMIs in that
department in elaborating their financial dossiers and
provides them with its guarantee. Production against
guarantee in 2008 stood at 5 million euros. It is an
establishment associated with Crédit Coopératif.
Jean-Marc ROUMEAS
Bruno MAZOYER
SOFINDI
Sofindi was created in 1987, at the initiative of the Medef de
Charente in partnership with Crédit Coopératif. It advises the
SME and SMI in the Poitou-Charentes region in searching for
financing and provides them with its guarantee. It has
developed expertise in the image sector. Production against
guarantee in 2008 stood at over 11 million euros. This financial
cooperative, which employs 2 people, is an establishment
associated with Crédit Coopératif.
Jean-Luc MAURY-LARIBIERE
Jean-François VIEIRA
SOFIRIF
Sofirif is a cooperative public limited company created in 1984
by the Groupement régional interentreprises of Val-d’Oise and
the GIE-SACV of Cergy-Pontoise, a major cooperative group of
service companies. It guarantees financing for SME/SMI and
has competence for the entire Île-de-France region. Sofirif
employs 3 people. Production against guarantee in 2008
stood at 25 million euros. It is an establishment associated
with Crédit Coopératif.
Jean-Claude MONTI
Michel MELE
SOFISCOP
des Scop de l’Ouest. Its geographical competence now extends
over the entire territory except for the South-East. Financial
tool for the Scop movement, it facilitates for production
cooperative companies access to financing, by providing its
guarantee for loans obtained and by advising them in
elaborating their financial dossiers. Sofiscop is an
58
Georges LAFARGUETTE
Jean Pierre DUCOL
SOFISCOP-SUD-EST
The fruit in 1992 of the extension of the SCR PACA to all of the
Scop in the Provence-Alpes-Côte d’Azur and Rhône-Alpes
regions, Sofiscop-Sud-Est is authorised to guarantee these
companies in these two regions for their investment credits.
This is an establishment associated with Crédit Coopératif.
Jean Pierre MODICA
Maurice STELLATI
SOMUDIMEC
Udimec, Union départementale des industries métallurgiques,
électriques et connexes of Isère, created in 1977, 30 years ago,
this cooperative public limited company in the interest of its
SMI members. Somudimec then widened its guarantee activity
to cover SMI s in the Rhône-Alpes and Burgundy regions,
followed by Auvergne in 2006 and Franche Comté in 2007.
It has opened a branch in L’Isle-d’Abeau, an industrial park in
the north of the Isère department showing strong levels
of growth. It benefits from support from the Rhône-Alpes
Region. Production against guarantee in 2008 stood at
95 million euros. Somudimec employs 13 people. It is an
Thierry EXPERTON
Gilles RAMILLON
SOMUPACA
An initiative of the Medef of the Var and Vaucluse, then joined
by Udimétal Bouches-du-Rhône then by all of the UIMM in
the region, Somupaca is a cooperative public limited company
created in 1985 which guarantees financing for SME and SMI
in the PACA region. It benefits from support from the Region
and departmental guarantee funds. It employs 3 people.
Production against guarantee in 2008 stood at almost
11 million euros. It is an establishment associated with Crédit
Coopératif.
Jean-Louis PICOCHE
Louis COINTE
Annual Report 2008
3.4 EQUITY PARTICIPATIONS ON A PARTNERSHIP BASIS
BANQUE FEDERALE DES BANQUES POPULAIRES
The Banque Fédérale des Banques Populaires is the central
body of the Banques Populaires network and Natixis. It is
a fully-fledged bank, and its capital is held by all the Banques
Populaires, including Crédit Coopératif. It combines the
functions of the central body of the Banques Populaires
network under the terms of the monetary and financial code
with that of the central body of Natixis, jointly with Caisse
Nationale des Caisses d’Epargne.
Banque Fédérale des Banques Populaires guarantees the
liquidity and solvency of the Banques Populaires network This
guarantee is based on all the equity capital held by the
establishments in the network through a mechanism of
internal solidarity. This system enables Banque Fédérale des
Banques Populaires to implement the solidarity of all the
Banques Populaires by calling for the necessary financial
backing from them, within the limits of their equity capital. Its
own equity capital vouches as a last resort for the liquidity
and solvency of the Banques Populaires. In 2008, Crédit
Coopératif increased its holding in the equity capital of
Banque Fédérale des Banques Populaires by 32.02 million
euros: It now has a holding of 161.6 million euros, i.e. 2.01%
of the equity capital of Banque Fédérale des Banques
Populaires.
BANQUE POPULAIRE DEVELOPPEMENT
A development capital company of the Groupe Banque
Populaire, Banque Populaire de Développement participates in
capital investment in non-listed companies across the entire
nation. Crédit Coopératif became a shareholder of it in 2004
subsequent to the contribution of the balance of its holdings
in Sopromec Participations. In 2008, it participated in a capital
increase for 10.8 million euros, allowing it to hold 4.32% of
the capital, i.e. a total holding of 25.7 million euros.
COOPEST
Set up in Brussels at the end of 2005, the COOPEST company
officially started its financial activities in December 2006.
COOPEST is a financial tool dedicated to financing the socially
responsible economy in the eastern European countries. Its
objective is to provide long-term financial support benefiting
projects that are economically profitable and socially
responsible, aiming to generate a leverage effect on other
sources of financing. COOPEST provides long-term loans,
subjected and/or convertible to the banking and non-banking
financial institutions involved in financing the social economy
or making active contributions to strengthening the rural and
peri-urban social and economic tissue of small firms. In 2008,
Crédit Coopératif increased its holding in COOPEST by 1
million euros, taking its holding to 33.9% of the capital. CROISSANCE NORD-PAS DE CALAIS
Croissance Nord-Pas-de-Calais participates in capital
investment in non-listed SME in the Nord-Pas-de-Calais
region. It comprises the investment centre for equity of the
IRD Nord-Pas-de-Calais of which it is a 49% subsidiary. Crédit
Coopératif is a shareholder with 2.96% along with regional
banking institutions. At the end of 2008, it participated in
a capital increase for 800,000 euros, taking its holding to 1.5
million euros.
ESFIN-IDES GROUP
The Esfin-Ides Group provides equity capital for entities in the
socially responsible economy, especially cooperatives (Ides)
and small and medium-sized firms in all sectors of activity.
Crédit Coopératif, is the major shareholder of ESFIN with
37.5% of the capital, alongside its social economy partners
(Mutual insurance companies, Confédération Générale des
Scop, and FNMF). Esfin holds, with especially the public
authorities and the Caisse des Dépôts, 33.5% of the Institut de
Développement de l’Economie Sociale (Ides) which participates
in the equity shareholding of companies in the cooperative
sector. Over the last few years, Ides, of which Crédit Coopératif
holds 5.20% of the capital, has substantially increased its
ability to intervene and has opened up to new sectors such as
artisan cooperatives, organic distribution and Sociétés
Coopératives d’Intérêt Collectif (Scic). Crédit Coopératif also
holds 16.09% of the capital of Esfin-Participations which
invests in shareholder’s equity in SME, in particular with those
that have committed to an ethical approach and sustainable
development. The portfolios of Ides and Esfin Participations
are managed by a management company, Esfin Gestion,
which also manages Fontanot Participations, a venture capital
mutual investment fund which for the most part is subscribed
by Esfin shareholders. Esfin Gestion also helps to draw up the
dossiers for SOFINEI, a financing company for integration
firms.
IRD NORD-PAS DE CALAIS
The Institut Régional de Développement, formerly the Société
de Développement Régional du Nord–Pas-de-Calais, is the top
independent regional investor, with 91.1 million euros of
consolidated equity. It is listed on the Paris Stock Exchange
and 17% of its capital is held by Crédit Coopératif. Driven by a
fertile Crédit Coopératif partnership with consular and
professional organisations, IRD is an essential development
tool for businesses and jobs in the Nord Pas-de-Calais region.
Its has 4 centres of activity: capital investment, intermediation,
real estate and advising which make it possible to respond and
accompany businesses in the Nord-Pas-de-Calais for all of
their needs.
59
RHONE DAUPHINE DEVELOPPEMENT
CHèQUE DOMICILE
An investment capital company set up in 1974, Rhône
Dauphiné Développement intervenes mainly in the RhôneAlpes region. Since the beginning, Crédit Coopératif has been
the major shareholder along with Caisse des Dépôts et
Consignations, regional banking institutions and professional
organisations. At 31 December 2008, Crédit Coopératif held a
19,13% stake in the capital of Rhône Dauphiné Développement.
Created more than 10 years ago out of the mobilisation of
major actors in social life, CHEQUE DOMICILE is the number
one issuer of the Chèque Emploi Service Universel (CESU). The
Chèque Domicile CESU allows its beneficiaries to access all the
services which on a daily basis make life easier. This product
plays a major role especially in terms of assistance at home for
the elderly after a hospital stay. This is a genuine interface for
accessing home assistance services with no constraints for the
user. At 31 December 2008, Crédit Coopératif held a 7.4%
stake in the capital of Chèque Domicile.
SOCODEN
The SOCODEN (société coopérative de développement et
d’entraide) financial company was set up in 1965 by the SCOP
(Sociétés coopératives de production) movement to finance
creation, growth and aid for SCOPs in difficulty, by providing
support that is different from that of the traditional financial
circuits (banks, public authorities, etc.). SOCODEN is financed
solely by and for SCOPs and it is run by representatives of
SCOPs. Over the last ten years, SOCODEN has been present in
one SCOP in two, during its creation or in the course of its
business life. At 31 December 2008, Crédit Coopératif held
a 1.9% stake in the capital of SOCODEN.
SOFINEI
Société de Financement des Entreprises d’Insertion (SOFINEI),
a cooperative public limited company with variable capital,
was launched on 21 December 2005 by the Comité National
des Entreprises d’Insertion (CNEI), the Institut pour le
Développement de l’Économie Sociale (IDES) and Crédit
Coopératif. By taking financial holdings in the insertion
companies, SOFINEI ails to create, develop and consolidate
projects of the CNEI members. It moreover has obtained
approval as a caring company in the sense of the Fabius law
on employee savings funds. At 31 December 2008, Crédit
Coopératif held a 2.96% stake in the capital of SOFINEI.
TRANSMEA
TRANSMEA is an innovative venture capital company, set up
at the initiative of the Union régionale des SCOP de RhôneAlpes and dedicated throughout its territory to employee
takeovers of businesses. It provides support and financing
adapted to suit staff wishing to take over their business. Its
ambition, over and above financial returns, is to support staff
and involve them in a long-term takeover of their firm.
TRANSMEA provides support for takeovers of firms in good
shape or in difficulty, during the transfer phase, in all sectors
of activities and whatever their size. At 31 December 2008,
Crédit Coopératif held a 6.67% stake in the capital of
TRANSMEA.
60
FINANTOIT
FINANTOIT is the number one private investment tool for
financing very simple social housing. A Société Coopérative
d’Intérêt Collectif, FINANTOITs calling is to participate in
financing production of housing by mobilising resources
from savings. Crédit Coopératif is a founder partner of
FINANTOIT, and as such it has a 22% stake in its initial capital.
At 31 December 2008, Crédit Coopératif held a 19% stake in
the capital of FINANTOIT.
AMOS ET CIE
The purpose of Amos et Cie is advising and engineering for
actuaries, financial studies and analyses, marketing, organisation
and strategy, for mutual companies falling under the Mutuality
Code, and especially those that perform insurance and
capitalisation transactions. Amos et Cie facilitates their
adaptation to an environment that is undergoing substantial
change. Crédit Coopératif is present in the capital of this
structure, with Mutual companies that fall under the Mutualité
Française. At 31 December 2008, Crédit Coopératif held a 63%
stake in the capital of Amos et Cie.
CGI BÂTIMENT
The CAISSE DE GARANTIE IMMOBILIERE DU BATIMENT «CGI
Bâtiment» is an insurance guarantee company that follows up on
the Caisse de Garantie Immobilière de la Fédération Française du
Bâtiment, set up in 1964. CGI BATIMENT accompanies growth
among Property developers, building firms and house builders. BTP
Banque is present in the capital of CGI Bâtiment with a holding of
4.65 million euros, making up 33.4% of the structure’s capital. SIFA
Société d’Investissement France Active (SIFA) is a social
investment company whose purpose is to strengthen the
equity of companies that create jobs especially for people in
situations of economic and social uncertainty: insertion
structures via economic activity that develops a merchant
activity, companies for adapted work, companies in difficulty
taken over by their employees, or other social companies. As
for shareholders it has, with the France Active association,
financial institutions, including Crédit Coopératif, major
companies and social company mutual investment funds.
At 31 December 2008, Crédit Coopératif held a 1.9% stake in
the capital of SIFA.
Annual Report 2008
SIDI
COGITAM
Set up more than 20 years ago, SIDI (Solidarité Internationale
pour le Développement et l’Investissement) is an international
solidarity institution that helps to provide financial and
technical consolidation for local financing structures in
Africa, Asia, Latin America and Eastern Europe. It provides
support for local actors able to operate autonomously and
provide financial products and services on a long-term basis
for disadvantaged populations who are unable to access the
classic banking sector. At 31 December 2008, Crédit
Coopératif held a 1% stake in the capital of SIDI.
On 1 July 2007, COGITAM appeared on the French alternative
management scene. The entity stems from outsourcing of
the quantitative and systematic management activities of
Ecofi Investissements, which holds 27% of the capital.
At 31/12/2008, the assets managed by COGITAM totalled
503.1 million euros.
SEFEA
The Société Européenne de Finance Éthique et Alternative
(Sefea scarl) is a cooperative society set up in Italyat the end
of 2002 by ten of the members of FEBEA - Fédération
Européenne des Finances et Banques Éthiques et Alternatives.
It intervenes to strengthen equity capital and provide
guarantees, and medium- or long-term loans to support its
members’ activities. At 31 December 2008, Crédit Coopératif
held a 56.9% stake in the capital of SEFEA.
FRANCE ACTIVE GARANTIE
France Active Garantie is a financial company in which
Crédit Coopératif is the second bank shareholder after Caisse
des Dépôts. It enables jobless people or those in difficult
economic situations who want to create their own company,
insertion structures through economic activity and social
companies access to bank credit by providing its guarantee.
Any project holder benefits from the advice and assistance
provided by financial and legal specialists. At 31 December
2008, Crédit Coopératif held a 20% stake in the capital of
France Active Garantie.
EURECOS
Eurecos Immobiliaria de la Economía Social SL, is a company
under Spanish law that was set up in Barcelona on
26 May 2008, with the objective of becoming the «property
company for the socially responsible economy» in Catalonia,
and then throughout Spain. The company provides the
Catalonian cooperatives with a further solution for their
industrial and commercial property development projects. At
31 December 2008, Crédit Coopératif held 4% of the capital
of registered capital of Eurecos Immobiliaria, which stood at
€7.5 M.
KREDITIMI RURAL i KOSOVOES
KRK LLC is a network of microfinance organisations made up
of rural savings and loan associations to finance farming
activities in Kosovo. Launched in 2000, KRK is now made up
of 37 loan associations and 6 branches, which are active in 8
rural municipalities in Kosovo. At the end of December 2008,
the loan portfolio, 75% of which is made up of loans for
farming activities, had reached €12 M and had more than
5,700 clients. At 31 December 2008, Crédit Coopératif held
a 10% stake in the capital of Kreditimi Rual i Kosovoes.
ENERCOOP
Set up in 2005 by actors in renewable energy sources and
citizen and socially responsible economy associations,
ENERCOOP is a Société Coopérative d’Intérêt Collectif
supplying electricity of renewable origin, bringing producers
and consumers together, and guaranteeing traceability of
the electricity. Its objectives are to provide consumers with
an opportunity to take full responsibility for their energy
choices, and also to provide producers of electricity from
renewable sources with new outlets. At 31 December 2008,
Crédit Coopératif held a 2.72% stake in the capital of
Enercoop.
CAP WEST
CAP WEST is a UCITS management company holding AMF
approval, and specialised in management of international
shares, mainly in American concerns. Ecofi Investissements
has a 20% stake in it. Management is concentrated on
a small number of assets with a long-term competitive
advantage. At 31/12/2008, the assets managed by CAP WEST
totalled 50 million euros.
61
4. Board of Directors
and General Management
4.1 REMITS AND FUNCTIONS AT 31 DECEMBER 20084.1.1 REMITS EXERCISED IN CRÉDIT COOPÉRATIF
Name
Start of remit
End of remit
Term of office as director
Term of office as Chairman of the Board of Directors
2008
22/05/2008
2014
28/05/2009
Jean-Louis BANCEL Term of office as director Term of office as Delegate Vice-Chairman
2003
06/02/2008
2009
Février 2011
CMGM - Caisse Mutuelle de Garantie des Industries
Mécaniques et Transformatrices des Métaux, (Mechanical
and metal-processing industries’ mutual-guarantee fund)
represented by Martine CLÉMENT
Term of office as director Term of office as Vice-Chairwoman
2007
15/05/2007
2013
Mai 2010
FNMF
Fédération Nationale de la Mutualité Française,
(French national mutual societies’ federation)
represented by Daniel LENOIR
Term of office as Vice-Chairman
2007
15/05/2007
2013
Mai 2010
UNAPEI
Union Nationale des Associations de Parents,
de Personnes Handicapées Mentales et de leurs Amis
(UNAPEI – national union of associations of mentallyhandicapped persons, their parents and friends)
represented by Jean GABAIN
Term of office as Vice-Chairman
2008
22/05/2008
2014
Mai 2011
Association ANCF/CEC
represented by Gilbert HENNIQUE
2007
2013
CG SCOP
Confédération Générale des Sociétés Coopératives
(Employee-shareholding cooperatives’ confederation)
represented by Patrick LENANCKER 2007
2013
2008
2014
2007
2013
DirectorS
CNCC - Conseil National du Crédit Coopératif
(Crédit Coopératif national council)
represented by Philippe ANTOINE FCA - Fédération des Enseignes du Commerce Associé
(Retail traders’ association)
represented by Guy LECLERC
62
Annual Report 2008
Name
Start of remit
End of remit
FFB – Fédération Française du Bâtiment
(French building trades association)
represented by Gabrielle DELONCLE
2004
2010
FNCC
Fédération Nationale des Coopératives de Consommateurs
(National federation of consumers’ cooperatives)
represented by Nadia DEHORS
2007
2013
FNMI
Fédération Nationale de la Mutualité Interprofessionnelle
(National federation of interprofessional mutual societies)
represented by Maurice RONAT
2003
2009
FNSC D’HLM
2003
Fédération Nationale des Sociétés Coopératives d’HLM
(National federation of cooperative social housing societies)
represented by Daniel CHABOD
2009
GMF - Garantie Mutuelle des Fonctionnaires
(Public employees’ mutual guarantee institution)
represented by Jean FLEURY
2004
2010
LIGUE DE L’ENSEIGNEMENT
(Educational league)
represented by Jean-Marc ROIRANT
2003
2009
UNAT - Union Nationale des Associations de Tourisme et de Plein Air (National union
of associations for tourism and open-air activities)
represented by Jean-Marc MIGNON
2007
2013
UNION SOCIALE POUR L’HABITAT (Housing social union)
Represented by Michel AMZALLAG
2007
2013
UNIOPSS
Union Nationale Interfédérale des Œuvres
et Organismes Privés Sanitaires et Sociaux
(National interfederal union of private health
and welfare organisations)
represented by Hubert ALLIER
2008
2014
2007
2007
2007
2007
Nov 2010
Nov 2010
Nov 2010
Nov 2010
25/01/2007
28/01/2009
25/01/2007
25/01/2007
Jan 2010
Jan 2010
Jan 2010
Jan 2010
Directors elected by the employees
Charles DELANNOY
Marc GIRAUD Françoise GIRMA-ROMEYER
Bernard LEURIDANT
General Management
Philippe JEWTOUKOFF, General Manager
Bernard LABROUSSE, Delegate General Manager
Hugues SIBILLE, Delegate General Manager
Pierre VALENTIN, Delegate General Manager
63
4.1.2 Other directorships and offices held by the company’s officers at 31/12/2008
> Directors
Company
Position
ADIE
Agence Nationale des Services à la Personne
Alliance Coopérative Internationale Banque Fédérale des Banques Populaires
BTP Banque
Chambre Professionnelle du Groupe « Politique d’entreprise » de la Commission Européenne
Conseil des Entreprises, Employeurs et Groupements de l’Économie Sociale
Conseil Supérieur de la Coopération Coopératives Europe
Dot. Coop Ecofi Investissements ESFIN
Esfin Gestion
Groupement National de la Coopération
Institut Régional de Développement Nord-Pas de Calais Inter-Coop Natixis Private Equity SICAV Epargne Ethique Action Social Economy Europe
Jean-Louis BANCEL
AMF Assurances
Assurance Mutuelles des Fonctionnaires (AMF)
Esfin Gestion MATMUT Vie
MUTRE SA
MUTRE Union Mutuelle Accidents Corporels (SMAC) Mutuelle Assurances des Travailleurs Mutualistes (MATMUT)
Mutuelle Centrale Finances (MCF) OFI EURO Moyen Terme
OFI EUROPA BOND RETURN
OFIVALMO Partenaires
64
Director
Professional Personality on the Board
of Directors
Director and Member of the Executive board
Director
Chairman of the Supervisory Board
Member
Chairman
Vice-Chairman
Director
Director
Permanent Representative of Credit Coopératif on the Board of Directors
Vice-Chairman
Chairman
Director
Chairman
Vice-Chairman
Director
Director, Vice-Chairman, Secretary to the Board of Directors, Chairman of the Investment Committee
Honorary Chairman of the Board of Directors, Director, Chairman of the Investment Committees
Director and General Secretary to the Board of Directors
Director, Vice-Chairman of the Board of Directors, Chairman of the Audit Committee
Director, and Chairman of the Finance Commission
Director, Permanent representative of SMAC
Director, Permanent representative of MATMUT
External corporate supervisor on the Supervisory Board, Permanent representative of AMF SAM
Annual Report 2008
Company
Position
Martine CLÉMENT
CMGM Comité d’Orientation du Fonds Stratégique d’Investissement
Conseil d’administration Rexecode
Conseil Economique et Social
Conseil Union des Industries et Métiers de la Métallurgie
Groupe des Fédérations Industrielles
Vaneau Industrielle et Commerciale - VIC -
Daniel LENOIR
A.C.M.E. / AMICE EQUASANTE
F.N.M.F.
G.P.M.F.
I.C.M.I.F. – Fédération Internationale des Coopératives et Mutuelles d’Assurance
MUTRE MUTRE UNION
SESAME VITAL (Conseil de Surveillance)
SOCIETE DES LECTEURS –
SCP Actionnaire de Alternatives Économiques
U.N.P.M.F.
UNOCAM (Bureau)
Jean GABAIN
ADAPEI de la Nièvre
ATI de La Nièvre
BML
Comptaburo
CREAI Bourgogne
Galerie Florane
La Chaussade
Société Christian POUVIOT et Associés Société d’expertise comptable
et d’audit de Bourgogne
Société d’expertise comptable
et d’audit du Centre UNAPEI URAPEI Bourgogne Gilbert HENNIQUE
Alliansys
Canaux ANCF/CEC
Cabinet « Hennique & Fils Consultants »
Capcil
Coge Form
Crédit Immobilier de Lille et des Pays du Nord
Croissance Nord-Pas de Calais
Chairwoman
Member Member
Member
Member
Chairwoman of the Tax-Affairs Section
Manager
Director and member of the Board
General Manager
Incumbent representative of FNMF
Manager
Incumbent representative of FNMF
Chairman
Director
Manager
Manager
Vice-Chairman
Manager
Manager
Director
Director
Director
General Treasurer
Chairman
Director
Manager
Chairman
Manager
Director
Director
Director
Director
65
Company
Gilbert HENNIQUE
Flandre Expansion
Groupement Interprofessionnel Paritaire pour L’emploi et le Logement
Habitat de Flandre Inovam
IRD Nord-Pas de Calais
Logicil
Nord Création Nord Financement (Conseil de Surveillance)
Résalliance Résalliance Conseil Saint Omer Expansion
Sambre Avesnois Expansion
Position
Director
Chairman
Director
Director
Director
Director
Chairman
Chairman
Director
Director
Director
Director
Patrick LENANCKER
Cci Grand Lille
CGSCOP - Confédération Générale des Sociétés Coopératives Ouvrières de Production
Scop A Cappella Scop Arpège 66
Incumbent
Chairman
Chairman
Manager
Chairman and Chief Executive
Philippe ANTOINE
Eficoop Formasup – Paris
SCI des Iles Chausey
UFR - PEPS Colmar (Université de Haute Alsace)
Member of the Board of Directors
Chairman
Joint Manager
Director
Guy LECLERC
AD Albertville
Commission d’examen des Pratiques Commerciales Conseil du Commerce de France FCA - Fédération des Enseignes du Commerce Associé Fédération Professionnelle du Sport (FPS) Intercop-Location
Intersport Belgique
Intersport France
Le Rally Montluçon
Monnier Chalon-sur-Saône
Le Mans Sport SDC Concarneau Chairman and Chief Executive
Member on behalf of the F.C.A
Director
Chairman
Director
Permanent Representative of FCA on the Board of Directors
Director
Director
Director
Director
Annual Report 2008
Company
Position
Gabrielle DELONCLE
Agglomération de MONTPELLIER CGPME HERAULT « Industrie » FFB – Fédération Française du Bâtiment France CONGRES
MAIRIE DE MONTPELLIER SOLARES
Vice-Chairwoman
Chairwoman
Vice-Chairwoman
Town Councillor dealing with Business Tourism
Manager
Nadia DEHORS
Coopérateurs de Normandie-Picardie
Deputy Managing Director
FIRES - Caisse de Retraite Complémentaire - Permanent Representative of Coopérateurs de Normandie-Picardie on the Board of Directors
IDES Permanent Representative of FNCC
on the Board of Directors
IDCR - Institut de Développement Coopératif Régional Normandie-Picardie
Chairwoman and Chief Executive
SACM - Société de Courtage, Gestionnaire et Conseil en Assurances Permanent Representative of Coopérateurs de Normandie-Picardie on the Board of Directors
Maurice RONAT
Conseil des Mutuelles Santé
Conseil Economique et Social
Fédération Nationale de La Mutualité Française FNMI - Fédération Nationale de la Mutualité
Interprofessionnelle
Haut Conseil pour l’avenir de l’assurance maladie
Matmut
Mutualité de la Loire
Mutuelles Présence
Union de Mutuelles Groupe Eovi
Daniel CHABOD
Compagnie Immobilière des Pays de Loire
SACICAP de l’Anjou Gestion Patrimoniale Immobilière
Fédération Nationale des Sociétés Coopératives d’HLM
Fonds Commun de Placement Gambetta GIE Gambetta
GIE Gambetta Immobilier
IDES - Institut de Développement de l’Économie Sociale
Le Foyer Moderne
Athénée
Société Coopérative de Production d’HLM « Coin de Terre et Foyer »
Société Coopérative de Production d’HLM
Vitry Coop Habitation
Vice-Chairman
Member
Vice-Chairman
Chairman
Member
Member
General Treasurer
Chairman
Chairman
Chairman
Delegate Managing Director
Manager
Federal Adviser
Manager
Director and Permanent Representative of Gestion Patrimoniale Immobiliere
External corporate supervisor
General Manager
Director
Chairman of the Board Of Directors
67
Company
Position
Daniel CHABOD
Société Coopérative des Alpes-Maritimes
Société de Garantie Accession des Organismes HLM
Union Sociale pour l’Habitat
PROCIVIS IMMOBILIER
SCIC Coopérative Foncière Et Immobilière
de l’agglomération de Tours
Chairman of the Board Of Directors
Member of the Executive Committee
Director
Jean FLEURY
Ame Lux (Luxembourg)
Assurances Banque Populaire - ABP Assurances Mutuelles d’Europe (AME) (Belgique)
Assurances Mutuelles d’Europe de France
Azur-GMF Mutuelles d’Assurances Associées, AGMAA CASER (Espagne)
COVEA RE
CSE Insurance Compagny (USA)
FIDELIA Assistance
GLOBAL (Portugal)
La Capitale, Assurances Générales (Canada)
PENNCORP (Canada)
Director
Director
General Manager
General Manager
Director
Permanent representative of AMF on the Board of Directors
Chairman
Chairman
Member of the Supervisory Board
Director
Director
Jean-Marc ROIRANT
G.C.M.S.
INFREP Ligue de l’Enseignement
Vacances Passion Vacances Pour Tous International Director
Chairman
General Secretary
Director
Director
Chairman
Chairman
Vice-Chairman
Vice-Chairman
General Delegate
Jean-Marc MIGNON
ATES Association pour le Tourisme Équitable et Solidaire
Association UCEL
BITS - Bureau International de Tourisme Social
Office Nationale de Garantie des Séjours et Stages Linguistiques
UNAT - Union Nationale des Associations de Tourisme et de Plein Air
Michel AMZALLAG
Union Sociale pour l’Habitat
Adviser to the Economic and Financial Studies Section
68
Annual Report 2008
Company
Position
Hubert ALLIER
ANESM CEGES
Chèque Domicile
Conseil Supérieur de l’Économie Sociale
CPCA
Fondation Crédit Coopératif
G.I.C.
UNIOPSS
at the General Meeting
Member
Director
General Manager
> DirectorS elected by the employees
Marc GIRAUD - Director elected by the employees
Crédit Coopératif
Clientele manager
Charles DELANNOY - Director elected by the employees
Crédit Coopératif
Clientele adviser
Françoise GIRMA-ROMEYER - Director elected by the employees
Crédit Coopératif
Management assistant
Bernard LEURIDANT - Director elected by the employees
Crédit Coopératif
Clientele manager
> GENERAL MANAGEMENT
Philippe JEWTOUKOFF
Banque Monétaire et Financière Banque Populaire Développement BTP Banque BTP Capital Investissement Bati Lease (anciennement Batinorest) Ecofi Investissements Inter-Coop
Intercop Location (anciennement Sicomi-Coop)
IRD Nord-Pas de Calais SICAV Choix Solidaire Director
Director
Permanent Representative of Credit Coopératif on the Supervisory Board
Permanent Representative of INTER-
COOP on the Board of Directors
Permanent Representative of Intercop-
Location on the Board of Directors
Director
Permanent Representative of BTP Banque on the Board of Directors
Bernard LABROUSSE
Ecofi Investissements Efindex
Inter-Coop
Permanent Representative of Inter-coop
on the Board of Directors
69
Company
Position
Hugues SIBILLE
ADIE AVISE
Chèque Domicile
Club Face Paris Conseil National de l’Insertion par l’Activité Economique (CNIAE)
Conseil Supérieur de l’Economie Sociale Esfin Ides
Esfin Gestion
Esfin Participations
Fédération des EPL
FONDA Fondation Crédit Coopératif
Fondation MACIF
Pierre Valentin
Banque EDEL
Coopest (Belgium)
Ecofi Investisssements
Union Centrale du Crédit Coopératif
COGITAM BTP BANQUE 70
Director
Chairman
Director
Member
Member
Director
Director
Director
Director
Permanent representative of Crédit Coopératif and Joint Manager
Director
Permanent Representative of BTP Capital Conseil on the Board of Directors
Director
Director
Member of the Executive Board and Managing Director
Annual Report 2008
4.2 REMUNERATIONS AND INCOME PAID DURING THE YEARThe principles and rules used to determine the remuneration of the Company’s officers are to be found in the Chairman’s report
on the work of the Board of Directors and the internal-control procedures, page 26.
4.2.1. Remunerations and benefits in kind:
The company’s executive officers whose term of office and remuneration are set by the Board of Directors are:
Jean-Claude DETILLEUX, Chairman
Jean-Louis BANCEL, delegate vice-chairman
Philippe JEWTOUKOFF, General Manager
Bernard LABROUSSE, delegate general manager
Hugues SIBILLE, delegate general manager
Pierre VALENTIN, delegate general manager
The remunerations and benefits in kind paid to them were as follows:
Company Year
Gross
Gross
officer
fixed variable remuneration
remuneration for the previous
year, paid during the year
For information:
gross variable
remuneration
for the year,
paid during the
following year
Benefits in kind
Directors’
fees
Total
Jean-Claude
DETILLEUX
2008
2007
€320,008
€293,007
€110,000
€80,000
€80,000
€110,000
€4,446
€4,390
\
\
€ 434,454
€ 377,397
Jean-Louis
BANCEL
2008
2007
€240,000
€235,102
€40,000
€0
€32,000
€40,000
€4,180
€4,335
\
\
€ 284,180
€ 239,437
Philippe
JEWTOUKOFF
2008
2007
€240,000
€236,923
€40,000
€0
€32,000
€40,000
€3,728
€3,759
\
\
€ 283,728
€ 240,682
Bernard
LABROUSSE
2008
2007
€194,691
€181,656
€30,000
€0
€24,000
€30,000
€71
€96
\
\
€ 224,763
€ 181,753
Hugues
SIBILLE
2008
2007
€200,000
€198,462
€30,000
€0
€24,000
€30,000
€3,724
€3,797
\
\
€ 233,724
€ 202,259
Pierre
VALENTIN
2008
2007
€180,085
€178,462
€27,693
€83,804
€0
€27,693
€3,296
€75
\
\
€ 211,073
€ 262,34
€192,000
TOTAUX
2008
€1,374,784
€277,693
2007
€1,323,612
€163,804
€277,693
The benefits in kind correspond mainly to the company vehicle provided.
€19,445
€16,452
\
\
€ 1,671,923
€ 1,503,869
The company’s executive officers do not receive any directors’
fees for their functions in the Crédit Coopératif Group.
4.2.2 Allotments of free shares:
The company’s executive officers were allotted free shares in
Natixis, as were all the staff of Crédit Coopératif Group, under
the same conditions (60 shares per person). The shares were
allotted on 12 November 2007, with acquisition on
12 November 2009 and share availability as from 14 November
2011.
4.2.3Stock subscription or purchase options
granted to each of the company’s
executive officers and options exercised
by them: There are currently no plans concerning subscription and
purchase of shares in Crédit Coopératif, for the company’s
executive officers or for salaried staff not holding positions
as executive officers.
In 2007, the Board of Directors of Natixis announced to
Crédit Coopératif that it had decided to allot Natixis stock
subscription options to the Crédit Coopératif executive
71
officers under the following conditions:
- Jean-Claude DETILLEUX :........................................38,000 options
- Philippe JEWTOUKOFF :...........................................15,000 options
- Jean-Louis BANCEL :................................................. 4,800 options
- Bernard LABROUSSE :............................................... 4,800 options
- Hugues SIBILLE :.......................................................... 4,800 options
- Pierre VALENTIN :........................................................ 4,800 options
Conditions for exercising the options:
Price: €22,15 Exercising period: between 29 January 2011 and 28 January 2014.
In 2008, the executive officers of Crédit Coopératif asked not
to be granted such stock options as may be issued by Natixis.
No options were exercised by the company’s executive
officers during 2008.
4.2.4Undertakings concerning cessation
of functions: Board executive officers having Managing Director status are
covered by the complementary pension scheme for all the
Managing Directors reserved to executive officers of the
Groupe Banque Populaire under the rules pertaining to that
category of officer.
In this respect, the combined amount of all pensions paid to
a senior manager may not exceed 60% of the salary while in
service, with an upper limit of €335,000. This guaranteed
income has been reduced to 50% for senior executives
appointed after 1 January 2005. It is hereby stated that this
scheme was instituted before 1 May 2005, i.e. before the
entry into force of Act 2005-842 of 26 July 2005
Compensation for cessation of activities:
In the event of early cessation of the function of chairman or
general manager (other than in the case of gross misconduct),
payment of compensation is provided for, at the level of Banque
Populaire Group, equal to one year of remuneration, plus onetwelfth of the annual remuneration per year of service in the
group, and where applicable, one-twelfth of the said
remuneration per year of exercising the function of general
manager. The maximum amount of compensation is capped at
forty-two twelfths of the annual remuneration.
Retirement or early retirement give rise to payment of
compensation equal to one-fortieth of the annual remuneration
for service in the Banque Populaire Group, capped at forty
fortieths of the said remuneration.
Furthermore, a contract with set contributions (article 83) taken
out by the previous Chairman was renewed as an appendix to
his employment contract when he was appointed Chairman
and General Manager. This contract was terminated on
31/12/2008 for the future. The amount paid out by Crédit
Coopératif under this contract in 2008 stood at €53,242
4.2.5 Directors’ fees due to members of the Board of Directors (in euros)
Association ANCF - CEC
7,500
Association UCEL 6,375
C.C.M.C.M. (Confédération de la Coopération, de la Mutualité et du Crédit Maritimes)
2,250
C.G. S.C.O.P. (Confédération Générale des SCOP)
3,750
C.M.G.M. (Caisse Mutuelle de Garantie des Industries Mécaniques & Transformatrices des Métaux) 11,250
C.N.C.C. (Conseil National du Crédit Coopératif) (Director)
11,250
C.N.C.C. (Conseil National du Crédit Coopératif) (censeur)
4,500
ESFIN
3,000
F.C.A. (Fédération des Enseignes du Commerce Associé)
6,750
F.F.B. (Fédération Française du Bâtiment)
72
0
F.F.C.G.A. (Fédération Française des Coopératives et Groupements d’Artisans)
4,500
F.N.C.C. (Fédération Nationale des Coopératives de Consommateurs) 9,375
F.N.M.F. (Fédération Nationale de la Mutualité Française)
7,125
F.N.M.I. (Fédération Nationale de la Mutualité Interprofessionnelle)
2,250
F.N.S.C. D’HLM (Fédération Nationale des Sociétés Coopératives d’HLM)
3,375
G.M.F. (Garantie Mutuelle des Fonctionnaires)
3,750
Ligue de l’Enseignement 0
M.A.I. (Mutuelle des Agents des Impôts)
0
Représentant des Porteurs de Parts « C » : Claude Audouit
6,000
Représentant des Porteurs de Parts « C » : Michel Vallade
5,625
Annual Report 2008
S.C.C.M.M. (Société Centrale de Crédit Maritime Mutuel)
3,000
Société Financière de la NEF
6,000
SOCODEN-FEC (Société Coopérative d’Entraide-Fonds d’expansion Confédéral)
1,500
SOCOREC (Sté Coopérative pour la Rénovation et l’Equipement du Commerce)
8,250
U.N.A. (Union Nationale des Associations de Soins et Services à Domicile)
U.N.A.P.E.I. (Union Nationale des Associations de Parents, de Personnes Handicapées Mentales et de leurs Amis)
U.N.A.T. (Union Nationale des Associations du Tourisme)
750
10,500
0
U.N.I.O.P.S.S. (Union Nationale Interfédérale des Œuvres et Organismes Privés, Sanitaires et Sociaux)
3,750
Union Sociale pour l’habitat
1,500
TOTAL
133,875
4.3 PROPOSED RENEWALSThe periods of office as directors of the following:
- Jean-Louis BANCEL ;
- La FNMI, Fédération Nationale des Mutuelles Interprofessionnelles ;
- La FNSC D’HLM, Fédération Nationale des Sociétés Coopératives d’HLM ;
- La Ligue de l’Enseignement ;
expire at the time of the next general meeting scheduled on 28 May 2009.
The Board of Directors proposes to extend the periods of office of Mr Jean-Louis BANCEL, the FNMI, and the FNSC D’HLM
for a further six years.
73
5. Parent-company financial
statements and consolidated
accounts 2008
5.1 ACCOUNTING REPOSITORIES USED5.1.1 Consolidated accounts
As from 1 January 2007, companies making public calls for
savings are required, in application of the European
regulations of 12 March 2002, to draw up their consolidated
accounts in accordance with IFRS standards. As Crédit
Coopératif complies with that obligation, since 1 January
2007 it has drawn up its consolidated accounts in accordance
with the repository.
5.1.2 Parent-company financial statements
The annual financial statements are drawn up in accordance
with the regulations applicable to credit institutions and
in compliance with generally-accepted French accounting
principles.
The rules for publication of financial statements have been
applied in accordance with regulation No. 91-01 of
16 January 1991 of the Comité de la Réglementation
Comptable (French accounting regulation committee),
including all modifications up to regulation No. 2007-05 of
14 December 2007.
The standards for presentation of the intermediate operating
totals comply with the recommendations of the Conseil
National de la Comptabilité (French national accounting
council), and the main changes are as follows:
- Restatement of non-recurrent elements as net banking
income or operating expenses depending on their nature,
- Restatement of gains and losses on fixed assets as net
banking income, except for gains or losses made on
operating real estate and equity interests.
5.2 CONSOLIDATED ACCOUNTS 2008As compared with 31 December 2007, the Crédit Coopératif
Group’s consolidation perimeter saw restructuring
without any effects on earnings and widening of its
holdings in the European banking world.
Two internal reorganisation operations were carried out:
The leasing activity of Sicomi-Coop was contributed to
Inter-Coop on 31 October 2008 with retroactive effect as
from 1 January 2008; the only activity maintained by
Sicomi-Coop is that of ordinary rental, and this does away
74
with the necessity of holding credit establishment status;
its name has thus been changed to Intercop-location;
The financial engineering activity formerly carried out by
Crédit Coopératif has been contributed to a specialised
subsidiary in which BTP Banque has an 80% holding and
Crédit Coopératif has a 20% holding: BTP Capital Conseil,
set up in April 2007 and integrated under full consolidation
since 1 January 2008.
Furthermore, two holdings were acquired:
- On 11 July 2008, Crédit Coopératif acquired all the
securities of TISE SA, whereas the 2007 financial year
saw the sale of the BISE, which was consolidated using
the equity method, and whose securities, in which Crédit
Coopératif held 49.72%, were sold on 26 April 2007.
- On 17 March 2008, Crédit Coopératif subscribed a capital
increase in the COOPEST company, in which it now has a
33.87% holding, and which is thus consolidated using
the equity method.
5.2.1 ACTIVITY
In 2008, the levels of activity seen by Crédit Coopératif
and its subsidiaries (BTP Banque and the leasing
companies) remained strong as a whole throughout the
year, although a certain slowdown was noted over the
various quarters.
Thus the funds collected showed an annual average
increase of 8.2% (as against 11.5% in the first quarter), a
slowdown that characterises the changes in all categories
of resources: sight deposits grew by 7.5% (as against 9.6%
at 31 March), term deposits and the UCITS balances
outstanding grew by 23.9% and 3.2% respectively, as
against 30.8% and 6.4% over the first three months of the
financial year; the only exception, savings, thanks to the
special offers made in anticipation of opening up the «A»
savings passbook system, ended the year at +11.0% as
against +10.5% in the first quarter.
The trend towards a slowdown was also seen in shortterm and assimilated loans, which clearly showed
stagnation, as debtors saw their growth rate halved
between 31 March (+ 18.1%) and the average for the year
(+ 9.4%), with portfolio growth falling from 5.4% to 1.2%
over the same period, whereas the fall in confirmed loans
grew sharper (‑9.9% as against –9.1%); on the other hand,
the balance outstanding for medium-and long-term loans,
still benefiting from the strong growth in payments made
Annual Report 2008
earlier, continued to increase (+ 15.9% as against + 12.5%
at 31 March) with a corresponding rise in employments,
due to their weight in the total accommodation, amounting
to an annual rhythm of 13.8% as against 11.8% at 31
March, further strengthening the reversal of the traditional
trend, which usually saw the funds collected increasing
faster than loans.
In fact, the only amounts outstanding that showed
opposite changes in the last quarter as compared with
those for the pervious months were new outlays for
investment loans on the one hand, which showed growth
of 26.0% after 30.3% at 30 September and 3.8% at 31
March, and on the other hand the signature commitments,
which ended the year with an increase of 8.9% as against
9.4% at 30 September and 7.6% at 31 March.
5.2.2 NET BANKING INCOME
The Group’s Net Banking Income stood at €375.2 million
at 31 December 2008, as against €345.7 million in 2007: it
this shows a high growth rate (+8.5%), which nonetheless
has to be put into perspective, because it includes
externalisation in 2008 of 6 million euros in capital gains
made in 2007. There is also non-recurrent income (mainly
in the form dividends), whose growth nonetheless failed
to make up for the absence in 2008 of the exceptionally
high capital gains shown in 2007 by the venture capital
activity.
Nevertheless, before taking these exceptional elements
into account, the net banking income stemming from the
relations with the clientele showed an increase that
remains at a highly satisfactory level (+ 6.2%), reflecting
the strong levels of activity that were maintained
throughout 2008, although here again there was a
downward trend over the quarters.
These good commercial performance levels led to a
significant rise in interest rate margins: the growth in
volume was indeed accompanied by a steady overall
margin rate, in spite of a context of rising indices that
prevailed for most of the year, and which usually results in
lower margins; however, the liquidity crisis that
characterised the financial market situation in 2008 led to
a very unusual widening of the spread between EONIA and
the 3-month Euribor; this resulted in substantial gains at
the level of the own-asset cash flow operations.
Over the same period, net commissions saw a smaller
increase (+4.8%), in spite of sturdy levels of banking
services invoiced and management of the means of
payment; as noted since the beginning of the year, the
fees received for UCITS asset management showed a
considerable fall linked to subscriber distrust of higherrisk products, which show the highest margins.
Nonetheless, it should be noted that in the end, the fall in
income in this field was smaller than feared, due to high
over-performance commissions received at the end of the
year on monetary products that rose sharply in value
because of the sharp fall in rates during the last quarter.
5.2.3 GENERAL EXPENSES
Staff costs, 152,1 M€ contre 155,6 M€ en 2007, sont en
réduction sensible (-2,2%), phénomène inhabituel qui
s’explique par les charges tout à fait exceptionnelles
enregistrées l’an dernier au titre de la participation et de
l’intéressement: These two items amounted to €13.4 M in
2007 as against €3.4 M in 2008. In 2007, the base of the
employee investment scheme was increased by the capital
gains on the sale of the BISE stock, whereas in 2008, the
base of the profit-sharing scheme saw a sharp fall due to
the high level of cost of risk, as is explained below.
If we disregard these elements, we find changes in staff
costs that are in line with the growth in staff levels, which
was once again considerable in 2008, as for Crédit
Coopératif and its subsidiaries, more than eighty new jobs
were created, two-thirds of them to strengthen the
networks.
The Other management expenses (including the
depreciation expenses) amount to €102.2 M as against
€91.3 M
in 2007. The increase (+12.0%) is high, but not as high as
expected: this was due to the unexpected developments in
the Group’s property projects. The headquarters renovation
project led to major expenses, due to accelerated
depreciation of the buildings to be demolished; the extra
expenses were capped fairly tightly in 2008, nonetheless,
as no rental fees were paid out for the replacement sites in
2008, contrary to the options included as part of the
budgetary hypotheses. Moreover, the site work in the
networks is progressing a little more slowly than planned.
It is also necessary to highlight the fact that in spite of a
growth rate that is by no means negligible, the total of the
other management expenses for 2008 benefited from
reductions in expenses of a non-recurrent nature: On the
one hand a VAT refund of €1.5 M for the cheques activity,
within the framework of a Group action initiated by the
Banque Fédérale des Banques Populaires, and on the other
hand a contractual retirement compensation payment
made by the Caisses
de Crédit Maritime (€3.7 M) and for which invoicing was
initially planned for 2009.
Thus with General Expenses standing at €254.3 M as
against €246.9 M in 2007, i.e. a modest increase of (+3.0%)
which is well below that of the net banking income (8.5%),
the operating coefficient fell below the 68% level, meeting
one of the major targets of CAP 2008, which had seemed up
to now to be well beyond reach; nonetheless, it already
seems clear that it will not be possible to maintain this
remarkable performance in 2009, taking into account the
special conditions of its execution.
75
5.2.4 GROSS OPERATING PROFIT
The Gross Operating Profit stands at €120.9 M, an
increase of more than 20% over 2007 (€98.8 M).
5.2.5 COST OF RISK
The operating margin for 2008, which could be seen as
excellent so far, was considerably weighed down by the
exceptionally high cost of risk (€88.0 M as against €30.5
M in 2007), under the combined effects of the depreciation
item of €42.3 M entered for the financial operations (on
Lehman Brothers and two Icelandic banks) and doubling
of the provisions set aside for the credit risk, in spite of the
relatively high level already adopted in 2007.
Moreover, in 2007, the sale of the BISE stock brought in a
pre-tax capital gain of €48.1 million for the group,
recorded as gains or losses on other assets.
Due to the combined effects of these two sources of major
reductions in income, the amount of tax payable fell
significantly (€8.0 M as compared with €26.7 M in 2007).
5.2.6 NET INCOME, GROUP SHARE
In all, the Net Income, Group share, amounts to €22.2 M, to be
compared with income of €87.8 M in 2007, in the knowledge
that the figure would have been €49.5 M without the gain
generated by sale of the BISE and its impacts on employee
investment and corporate income tax.
5.3 RATIOS AND RATINGS5.3.1 REGULATORY RATIOS
As regards liquidity, the Group is structurally in surplus. The
liquidity ratio exceeds the requirement imposed on each of
the institutions (100%). At the end of 2008, the liquidity
ratio of Crédit Coopératif was 154%, and 210% for BTP
Banque.
For the purpose of controlling major risks, the regulations
set the following limits:
- 25% of equity capital for the risks borne in respect of a
given beneficiary,
- 8 times the amount of equity capital for the total
commitments which, per beneficiary, exceed 10% of
equity capital.
The Crédit Coopératif Group has developed a wide spread of
risk, ensuring that no weighted unit commitment for the same
beneficiary exceeds 10% of its equity capital.
5.3.2 RATING
The Crédit Coopératif Group benefits from the Groupe
Banque Populaire rating, namely:
•M
oody’s: short term P-1, long term Aa3, stable prospects
(rating at 18/07/2008)
• S tandard & Poor’s: short term A-1, long term A+, stable
prospects (rating at 27/10/2008)
76
5.4 company financialstatements 20085.4.1 ACTIVITY
In 2008, employments grew faster than resources with
growth rates of +16.5% and +13.1% respectively. This
difference represents a major change, after several years
characterised by stronger growth in resources, followed by
renewed balance in the growth rates over the last two
years, standing at +15.4% and +16.2% respectively in
2007 in particular.
The total amount of funds collected stood at €9,750 M as
compared with €8,621 M in 2007.
Sight deposits (€2,165 M) showed growth of + 7.8% over
the year, i.e. the same rate as in 2005, but lower than 2007
(+ 13%) and 2006 (+11.8%).
Savings reached €945 M, i.e. an increase of 11.1%, the
same as in 2007 (+10.7%).
Term deposits stood at €2,571 M as against €2,098 M in
2007, in increase of + 22.5%, slightly lower than in 2007
(+25.9%).
- The growth rate seen for UCITS investments (+ 11.1%)
failed to confirm the strong growth seen in 2007 (+14.5%)
but was comparable to that for 2006 (+ 11.9%) and 2005
(+9.8%).
Growth in employments (€4,923 M), still showed an upward
trend, with an increase of +16.5%, higher than the rate for
2007 (+15.4%) and rising constantly since 2003. Most of the
growth concerned medium- and long-term loans.
Medium- and long-term loans (including property leases
and confirmed credits) amounted to €4,271 M, an increase of
€654 M, equivalent to the amount of resources used for the
short term. This strong growth of 18.1% results from loans
with due dates. It follows the strong growth in payments,
+ 33.3% in 2008, at a total of €1,624 M, almost double the
amount for 2005 (€855 M). On the other hand, confirmed
credits (€102.5 M) were at a lower level than in 2007 (€113 M).
Overdrawn accounts reached €342 M as compared with
€314 M last year, a rise of + 9.1%, which is bigger than
in 2007 (+7.4%).
The commercial portfolio €173 M) and cash flow loans
€137 M), saw overall growth of +4.5%, higher than that
for 2007 (+3.2%)
5.4.2 HOLDINGS
The Crédit Coopératif portfolio of non-consolidated
subsidiaries stood at 347 million euros, an increase of
17.5% as compared with 2007
The main investment operations were as follows:
- An increase of 32.02 million euros in our investment in
the equity capital of Banque Fédérale des Banques
Populaires, bringing that investment to a current 161.6
million euros;
- An increase of 10.81 million euros in our holding in the
capital of Banque Fédérale des Banques Populaires,
bringing that holding to a current 25.7 million euros;
Annual Report 2008
- A subscription of 2.1 million euros in the capital of TISE
(Poland), in which our holding stood at 93.9%;
-An increase of 1 million euros in our holding in the capital
of Banque Edel, which now stands at 33.9%;
- An increase of 1 million euros in our holding in the capital
of COOPEST (Belgium), which now stands at 33.9%;
capital of Inter-cop Location (formerly Sicomi-Coop),
which now stands at 7.06 million euros;
capital of Croissance Nord-Pas de Calais, which now
stands at 1.5 million euros;
- An allocation free of charge of 0.6 million euros in the
VISA Inc. company;
- Reclassification of 1.4 million euros concerning a holding
in the Fonds de Garantie des Dépôts (previously entered
as intangible assets)
At 31 December 2008, the other main holdings were as
follows:
- Ecofi-Investissements: 21.8 million euros and 99.1% of the
capital;
- Inter-coop: 21.5 million euros and 82.4% of the capital;
- BTP Banque: 19.1 million euros and 99.9% of the capital;
- Bati Lease: 16.7 million euros and 94.9% of the capital;
- Esfin: 15.2 million euros and 37.6% of the capital;
- BTP Capital Investissement: 9.2 million euros and 79.4% of
the capital;
- Intercop Location: 7.1 million euros and 75.5% of the capital;
- Esfin Participations: 6 million euros and 16.1% of the capital;
- IRD Nord-Pas-de-Calais: 5.7 million euros and 17.4% of the
capital;
5.4.3 EQUITY CAPITAL AND CAPITAL ASSETS
Equity capital, including retained earnings for the financial
year, amounted to 809 million euros at 31 December 2008,
compared with 806 million euros at 31 December 2007.
Capital remained stable since 31 December 2006, at 493.7
million euros.
The value of the portfolio investments in subsidiaries is 348
million euros.
Net capital assets amounted to 21,9 million euros compared
with 21 million euros at 31 December 2007.
5.4.4 INCOME STATEMENT
> Net banking income
Net banking income amounted to €255.2 M as against
€222.1 M last year, i.e. an increase of 14.9%. Two-thirds of
the growth in net banking income stem from increases in
interest rate margins and the other third comes from
increased commissions. Contrary to 2007, the nonrecurrent elements have a limited impact.
Basically, the growth in net banking income results from
increased levels of activity, and the positive effect of the
larger asset amounts is greater than the negative impact of
reduced margins. Margins are shrinking:
- With the lower share of short-term credit balances linked
to the minimum lending rate and the delay in its upward
adjustment when interest rates are rising
- With continuing low spreads for new loans with due dates
The increase in the outstanding balance of commissions
(+ €11.1 M) concerns three fields:
- Net commissions on banking operations (+ €5.1 M),
mainly due to account management fees and closing
costs.
- Commissions on means of payment (+€1.8 M) following a
fall in inter-bank exchange costs and fees on direct Internet
debits entered in 2007 under Efitel.
- In the same way, the other bills for IT services provided,
mainly subscriptions, formerly received by Efitel represent
an income item amounting to €3.4 M, to be compared
with the €2.2 M in dividends and products linked to the
global asset transfer carried out in 2007.
The dividends received on holdings, at €24,1 M as compared
with €23 M in 2007, show growth with those from
BTP-Capital Investissement (+€1.6 M) and also with receipt
of a non-recurrent dividend of €1.7 M from VISA INC.
The elements outside the scope of normal operation show
a fall (-€3.7 M). They were very high in 2007 as a result of
the switchover to the actuarial calculation for the spread
of premiums/discounts (+€1.5 M), and also due to high
rates of interest on doubtful receivables.
> General expenses
The Staff costs (€98.4 M) sare 5.7% lower than those at
31 December 2007 (€104.3 M).
The fall of €5.9 M noted between 2007 and 2008 (- 5.7%) is
due to the provisions set aside for employee investment and
profit-sharing schemes, which were reduced from €8.4 M to
€0.9 M because their amounts are linked to the profits for
the financial year. Apart from these elements, the salaries
and other staff costs rose by + 4.4% as compared with the
previous year.
The Other general expenses and depreciation (€67.0 M)
rose by +12.8% as compared with 2007 (€59.4 M). This
increase is mainly due to the non-recurrent depreciation
carried out within the framework of the headquarters
building project and the modernisation work on the
buildings in the network, which account for more than half
(€3.9 M) of the rise in other operating expenses as
compared with 2007 (+€7.6 M).
In all, the General expenses (€165.4 M) rose by 1.0% over
last year (€163.7 M).
> Gross operating profit
Gross operating profit came to €89.8 M as compared with
€58.4 M in 2007.
> Cost of risk
The amount of the provisions set aside in 2008 showed a
strong increase, reaching €77.7 M; it can be broken down
as follows:
77
- €30.3 M in net depreciation on client receivables
- €42.2 M in stock depreciation expenses, including €20.9 M
for Lehman Brothers and €19.5 M for Landsbanski Island
- €2,9 M in provisions for risks
- €2.2 M die the “time” effect.
An allocation of €0.6 M was made to the Fonds Régional
de Solidarité (FRS – regional mutual-help fund) set up by
the Banques Populaires network, whereas the Fonds pour
Risques Bancaires Généraux (General banking risk fund)
was the object of a reversal of €2 M.
> Net income
The Net income stood at €18.8 M as compared with
€64.7 M in 2007. Taxes represent income of €7.6 M over
the period, as against an expense of €13.3 M in 2007. This
situation stems mainly from use, corresponding to €6,1 M,
of an option provided for under the terms of the modified
French finance law for 2008 and consisting of setting
losses for tax purposes as noted for 2008 against nondistributed profits for the previous three financial years, a
scheme to which income of €1.4 M has been added
concerning tax rebates for sponsorship expenses.
> LINE HEADINGS (thousands of euros)
78
At 31/12/2008
At 31/12/2007
+ Net interest income
166,243
+/- Income from variable income securities
24,120
+ Fee and commission income 51,219
+ Net income from trading and short-term investment portfolios
13,554
+ Other net operating income 28
= NET BANKING INCOME 255,163
152,332
23,000
40,881
5,955
-52
222,117
- General operating expenses and depreciation expenses
. Staff costs
. Other administrative expenses
. Depreciation expenses = GROSS OPERATING INCOME
165,398
94,710
70,157
531
89,765
163,747
103,534
59,622
592
58,370
+/- Cost of risk =
NET OPERATING INCOME
-77,737
12,028
-18,956
39,414
+/- Net income/loss on capital assets
=
PROFIT BEFORE TAX ON ORDINARY OPERATIONS
-1,006
11,022
44,885
84,299
+/- Net extraordinary income/loss
- Corporation tax
+/-Appropriation to/Reversal from General Banking Risk Reserve and Regulated Provisions
=
NET INCOME
0
7,621
116
-26
-13,264
-6,325
18,759
64,683
Annual Report 2008
5.4.5 COMPANY INCOME FOR THE LAST FIVE FINANCIAL YEARS
2004
2005
2006
2007
2008 (1)
CAPITAL
Share capital Number of shares issued
232,779,630 291,009,559 493,718,765 493,718,765 493,718,765
15,264,238
19,082,594 Number of CCIs issued 25,900,000 25,900,000 25,900,000
6,475,001 6,475,001 6,475,001
OPERATIONS AND PROFIT/LOSS FOR THE FINANCIAL YEAR
Gross revenue net of tax
Net income before tax, depreciation
and provisions
390,079,804 437,800,863 497,215,356 634,617,450 736,718,848
22,606,131 34,939,799 38,636,727 96,102,880 84,247,590
Corporation tax
7,201,872 8,029,503 5,948,703 13,264,390 - 7,621,256
Employee profit sharing for the financial year
1,289,480 1,468,639 1,349,810 4,691,848 183,264
21,350,741 25,068,902 26,820,247 64,683,330 18 758,920
10,187,519 12,988,702 13 499,849
2,962,313 3 554,776
Net income after tax and calculated costs
(amortisation and provisions)
Net income distributed on shares
5,206,324 6,826,238 Net income distributed on CCIs -
RESULTS PER SHARE
Net income after tax, but before depreciation
and provisions 1.01 1.41 1.01 2.56
Net income after tax, depreciation and provisions 1.40
1.31 0.83
Dividend per type A share 1.5 %
Dividend per type B and C share 3.0 %
3.0 %
2.00 0.58
3.0 %
3.6 %
3.0 %
3.6 %
1,412 1,439 1,459 1,500
1,560
Dividend allocated per CCI
3.0 %
2.84 - STAFF
Average numbers of staff employed
during the financial year
Wage costs
56,216,818 58,623,086 61,661,876 65,236,972 Amounts paid under company benefit schemes
(company social security and benefit schemes) 29,274,804 32,581,419
32,198,369 33,235,656
67,673,244
34,580,157
(1) Subject to the approval of the Ordinary General Meeting.
79
5.4.6 INFORMATION CONCERNING SUBSIDIARIES AND MINORITY SHAREHOLDINGS AT 31 DECEMBER 2008
Capital
Equity
Percentage
valueLoans and
Amount of
Gross
capital
of capital
of the
advances
deposits and Revenue
other than
held
investment granted by
guarantees
for the
share capital
held
the company
provided by
latest
and not
the company financial
redeemed
year
Net income Dividends
or loss
received by
for the
the comlatest
pany during
financial the financial
year
year
A) Detailed information concerning holdings whose value exceeds 1% of the capital of the company required to make the publication
I - Subsidiaries (not less than 50% of the share capital held by the company)
BTP BANQUE 19,215,000
BTP CAPITAL
INVESTISSEMENT 14,073,752
GIE-USCC 11,700,000
BATILEASE 9,065,280
62,849,000 99.95 % 19,056,085 100,066,778 16,596,005 68,418,260 10,896,702 2,350,859 79.42 %
-
79.61 %
-
9,209,458
-
-
1,254,942 1,156,847
5,008,020
9,314,370
- -
35,824,612 3,573,002 -
-
12,757,000 4,481,000 860,128
-
-
2,210,935
326,886
- 27,842,000 4,188,000
51,208,000 94.88 % 16,708,081 230 664 725
II - Minority investments (10% to 50% of the share capital held by the company)
ESFIN
38,277,228
EDEL
48,400,000
4,847,000 37.58 % 15,228,844
103,000
RHONE DAUPHINE DEV 10,495,800
33.94 %
2,398,616
-
870,841 19.13 %
2,004,949
- 997,624
-
-
289,690 104,960
IRD - 44,274,913 26 228,000
(EX SDR NORD-PAS DE CALAIS)
17.38 %
5,652,172
-
-
2,349,000
1 240 000
428,872
ESFIN PARTICIPATIONS 31,251,738
16.11 %
6,000,236
-
-
1,127,532
1,622,227
448,292
-
-
8,067,523
-
-
104,967
4,556,296
B) Overall information concerning the other subsidiaries or investments
I - Subsidiaries not mentioned in § A
a) French subsidiaries (taken together) 54,525,800
b) Subsidiaries in other countries (taken together) 4,687,872
II - Investments not mentioned in § A
a) French subsidiaries (taken together) 2,597,691 b) Companies in other countries (taken together)
80
Annual Report 2008
6. Distribution
and appropriation of earnings
Noting that the results for the financial year reflected net income of €18,758,919.63, for Crédit Coopératif, and that the
balance sheet shows a figure carried forward to retained earnings of €15,171,283.25, the General Meeting resolves that,
pursuant to Article 42 of the Articles of Association, the distributable profit of € 33,930,202.88 will be appropriated as follows:
• Legal reserve, 15% of the net income (€18,758,919.63) ......................................................................................................... €2,813,838,00
• Carried forward to retained earnings: ……………..........................................................................................................................€14,061,740,33
• Remuneration of C shares at the rate of 3.6%* pro rata temporis: .................................................................................... €4,570,692,00
• Remuneration of B shares at the rate of 3.6%* pro rata temporis: .................................................................................... €8,179,157,00
• Remuneration of cooperative preference shares
at a rate of 3.6% of their nominal value: ...................................................................................................................................... €3,554,775,55
• Payment of a cooperative rebate to members: ................................................................................................................................ €750,000,00
Pursuant to Article 243 of the CGI, it is stated that the amount of interest and rebates distributed over the last three financial
years is as follows:
Financial year
A shares
B shares
C shares
CCI
Rebate
2005
0
€4,056,873* €319,366* \
€450,000
2006
€752,587*
€5,713,631*
€2,971,301* \
€750,000
2007
0
€6,943,662*
€3,545,040* €2,962,313
€2,500,000
Cooperative rebate
Rebates are an element of cooperative identity, set out in
article 15 of the French law dated 10 September 1947
covering the regulations for cooperation. It consists of
distributing part of the annual income to the members who
have made the biggest contribution towards earning the
income. Crédit Coopératif is one of the few cooperative
banks in Europe that has maintained this specific cooperative
principle.
The rebates are divided up between the members of the
Crédit Coopératif in the light of the loan operations
they have carried out with their bank: it takes the form of a
discount on the interest paid to Crédit Coopératif for 2008.
* Interest eligible for a 40% rebate for the benefit of individuals
81
7. Prospects for 2009
A
fter a financial year in 2007 that was particularly
impressive, 2008 came to a close for the Crédit
Coopératif Group in a context of crisis that was
every bit as exceptional, and that left its marks, but
without damaging its core business.
As compared with the very high growth levels seen in 2007,
the slowdown that progressively reached all the assets
managed, can in fact be seen as no more than a return to
more normal growth rates; overall, concerning funds
collected and loans, the growth rates noted remained
excellent, at 8.2% and 13.8%; these figures also show a
break with the previous periods, as the rise in employments
this year was faster than that of deposits, with the Group
thus reaching its target of restoring the balance of its
growth, a target that it had been pursuing for a long time,
without seeing such levels of success up to now.
These good levels of commercial performance translated of
course into higher financial income; it was all the higher in
that the strong growth in net banking income was
accompanied by a very moderate rise in general expenses. It
is true that these changes were accentuated by the
normalisation in 2008 of the amounts distributed under the
employee investment and profit-sharing schemes, which
reached very high levels in 2007, due to the higher base
figures, increased, amongst other things, by the capital gains
on the sale of the BISE stock.
Be that as it may, the financial year 2008 could be seen up to
then as being a very good year, because even the sole
challenge among those set by CAP 2008 that had seemed
out of reach, was attained: bringing the operating ratio
below the 68% mark.
It was then that the financial crisis and its economic
consequences caught up with the Crédit Coopératif Group,
leading to almost tripling the provisions set aside to meet
the cost of risk, concerning financing and loans, thus
considerably reducing the net income, whose final amount
shows a reduction that is all the more striking in that
2007 saw exceptional capital gains from the sale of BISE.
Although it is true that the Crédit Coopératif Group was
hard hit by the shock waves of the financial crisis that
started in the summer of 2007 and ended up by dividing its
income by four, it is also true that if we combine the income
figures for the last two years, the average annual income
amounts to about fifty million euros, i.e. more or less the
figure that could be expected for years seeing only the usual
82
levels of random events inherent to banking activities.
This means that although the Crédit Coopératif Group was
unable to avoid the crisis altogether, it was not put into
difficulty. Its financial strength has not been reduced by
these events, and it still enables the Group to face the
coming period of uncertainty in all serenity.
Although the Group’s financial assets now seem sound, it is
clear that the current destabilisation of the banking world
could well be accompanied in the coming months by a
slowdown in economic activities which would bring the
Group possible fresh problems along with opportunities for
growth.
Faced with the turbulence of the current situation, the Crédit
Coopératif Group remains determined to provide efficient,
reasonable support for the players in the socially responsible
economy, for whom it has always been a loyal partner in the
past, whatever the problems posed by events.
In this respect, the untoward events that marked 2008 did
not prevent the Crédit Coopératif Group from mobilising
its strengths to continue its reflections and its work begun
late in 2007 with the objective of setting up its Coopéraction
2015 corporate plan, which will guide its actions until 2015.
During the first half of the year, the main outlines of
Coopéraction 2015 were drawn up within the framework of
a participative procedure calling on the vital forces of all its
staff, together with its clients and members, especially via
their representatives present in the various structures of the
Group’s cooperative life at local and national levels. The
second half of the year was given over to setting out the
concrete policies to be implemented as part of the second
Medium Term Plan, covering the period from 2009 to 2012,
which was officially presented in January 2009 during
a convention bringing together all the Group’s staff, its
directors, and the members’ representatives.
The ambition that the Group has set out to apply in its
various aspects is guided only by its determination to
anticipate efficiently the changes in its key clienteles’
expectations, to continue to provide them with quality
solutions that meet their requirements.
In concrete terms, this means that while continuing to pay
careful attention to making constant improvements in the
services provided to all its partners, associations, SMEs and
individuals, on an everyday basis, the Crédit Coopératif
Group intends to make all the changes in its commercial,
financial, organisational and technological skills necessary
Annual Report 2008
to enable it to provide its clients, today and in the future,
with an ability to listen to them and understand them, and
to advise them and take action to deal with the social and
environmental concerns of the coming years.
Thus 2009 will see a considerable proportion of the Group’s
resources devoted to renovation of its property tool, whose
upkeep from operational and security standpoints alike had
taken second place among its concerns for a long time,
because of the costs involved, thus limiting the scale of the
work carried out, at headquarters and in the network as well.
However, it is well aware of the importance of having at its
disposal functional equipment that is able to meet current
and future safety and environmental preservation standards
in 2008, as well as accelerating its work to modernise and
extend the network of branches, which was begun in recent
years, the Group has confirmed its decision to undertake a
large-scale renovation operation in the buildings in Nanterre;
this means that in May 2009, the departments at headquarters
will move to a temporary site for at least three years.
Furthermore, the considerable numbers of staff members
taken on in recent years, especially in the commercial sector,
will be joined by more new staff once we have determined in
detail the exact skills required to meet the specific aspects of
our ambitions and the increasing complexity of financing
techniques and regulatory provisions.
Crédit Coopératif is also closely following the planned links
between the Banque Populaire Group and the Caisses
d’Epargne Group. The planned merger in 2009 between
Banque Fédérale des Banques Populaires and the Caisse
Nationale des Caisses d’Epargne to create a single central
structure for both networks would result in creation of the
second largest banking group in France, on the basis of a
universal bank model to ensure its stability.
The Board of Directors has empowered its Chairman, to take
steps, alongside the other Chairmen of the banques
populaires, to adopt the federative structures necessary to
ensure a balance of power in the new entity.
Although Crédit Coopératif regrets that its senior
management’s comments were not taken into account more
carefully, as this could have avoided the painful experience
of Natixis, it is not fundamentally opposed to setting up links
between the two groups, provided that their cooperative
nature is fully taken into account and the coming set-up is
based on decentralised cooperative networks.
It has faith in the solidity of its financial base, which has
enabled it to go through the recent banking crisis without
suffering too much damage, and should enable it to find its
way through the difficult times that the real economy is
likely to face in the near future, the Crédit Coopératif Group
intends to apply a strong-willed policy stemming from the
legitimacy of its positioning and confirms its determination
to bring all its strengths to bear in order to reinforce its
ability to play a major, useful part in the socially responsible
economy.
83
84
Credit Cooperatif
Group Financial Statements
1. CREDIT COOPERATIF GROUP FINANCIAL STATEMENTS
p.86
2. CREDIT COOPERATIF COMPANY FINANCIAL STATEMENTS
p.154
3. STATUTORY AUDITORS’ REPORTS
p.186
85
1. Consolidated accounts of
the Credit Cooperatif Group
86
A nn u al R ep o rt 2 0 0 8
Consolidated Financial Statements
at 31/12/2008
CONSOLIDATED BALANCE SHEETNotes
2008
Cash, CCP postal-giro a/cs, central banks
Financial assets at a fair value by performance
V.1.1
Derivative hedging instruments
V.2
Financial assets available for sale
V.3
Loans and receivables from credit institutions
V.4
Loans and receivables from clients
V.4
Revaluation reserve for portfolios hedged by interest rates
Financial assets held until maturity
V.5
Current tax assets
Deferred tax assets
V.7
Adjustment accounts, other assets
V.8
Non-current assets intended for transfer
Shareholdings in companies consolidated according
to the equity method
VI.8
Investment properties
V.9
Tangible assets
V.10
Intangible assets
V.10
Goodwill on acquisition
V.12
225,806
26,684
41,744
1,841,584
1,200,183
7,286,349
0
626,569
18,827
15,761
285,092
0
321,045
35,206
25,885
2,300,299
1,001,139
6,370,220
0
677,822
0
8,701
435,886
0
29,812
25,559
59,341
11,267
4,506
28,935
34,491
51,885
11,713
3,546
TOTAL ASSETS
11,699,084
11,306,773
ASSETS
LIABILITIES
2007
Notes
2008
2007
Central banks, CCP postal-giro a/cs
Financial liabilities at a fair value by income
V.1
Derivative hedging instruments
V.2
Payables to credit institutions
V.13
Payables to clients
V.13
Liabilities in the form of securities issued
V.14
Revaluation reserve for portfolios hedged by interest rates
Current tax liabilities
Deferred-tax liabilities
V.7
Adjustment accounts, other liabilities
V.8
Liabilities against assets intended for transfer
Technical provisions for insurance contracts
Provisions V.15
Subordinated debt
V.16
Equity capital group shar
- Capital and associated reserves
- Consolidated reserves
- Unrealised or deferred gains or losses
- Net income for the year
Minority interests
0
22,933
30,007
1,190,936
5,370,543
3,352,138
0
743
7,285
425,900
0
0
27,102
239,846
911,375
710,904
145,786
32,492
22,193
120,276
0
11,563
99,135
875,407
5,347,735
3,158,070
0
3,070
7,215
454,509
0
0
26,017
235,573
975,345
674,822
106,359
106,324
87,840
113,134
TOTAL LIABILITIES
11,699,084
11,306,773
87
CONSOLIDATED INCOME STATEMENTIn thousands of euros
Notes
2008
2007
VI.1
VI.1
VI.2
VI.2
VI.3
605,051
(381 332)
154,748
(51,245)
2,815
530,787
(314 749)
151,831
(53,140)
3,528
VI.4
VI.5
VI.5
25,316
24,435
(4,549)
20,529
14,107
(7,212)
Net banking income
375,239
345,681
General operating expenses
Amortisation and depreciation expenses on intangible
and tangible assets
VI.6
(237,033)
(231,569)
(17,256)
(15,271)
120,950
98,841
Cost of risk
VI.7
(87 984)
(30 537)
Net operating profit
32,966
68,304
VI.8
VI.9
VI.10
1,535
243
0
3,154
47,661
0
Income before tax
34,744
119,119
Corporation tax
VI.11
(8,009)
(26,684)
Net income
26,735
92,435
Minority interests
(4,542)
(4,595)
Net income – Group share
22,193
87,840
0.80
3.11
Interest and similar income
Interest paid and similar expenses
Commission income
Commission expenses
Net gains or losses on financial instruments with a fair value by performance
Net gains or losses on financial assets available for sale Income from other activities
Expenses on other activities
Share of results from companies consolidated according
to the equity method
Gains or losses on other assets
Variation in the value of goodwill
Net profit for the year attributable to Group – per share (in ?)
Table of equity capital – switchover from 31/12/2006 IFRS standardSto 31/12/2008 IFRS standards
Capital andConsolidated Unrealised or deferred Net income Equity Minority Equity
associated reserves reserves
gains or losses attributable capital interests capital
Sharel
Reserves
Variations Variations to Group
Group
total
Capita associated
in values in values
Share
with capital
of assets of hedging
available derivatives
for sale
Equity capital
at 31/12/2006 before appropriation
– IFRS standards
428,056 231,309
82,631 115,002 (2,278) 47,108 901,828 106,772 1,008,600
– Appropriation
of earnings 2006
12,171
34,937 (47,108)
0
0
- Distribution 2007
concerning 2006
(9,479)
(9,479) (1,007) (10,486)
Equity capital
at 31/12/2006
after appropriation
– IFRS standards
428,056 243,480 108,089 115,002
(2,278) 0 892,349 105,765 998,114
3,286
3,286
5,217
8,503
– Capital increase
– Elimination of
(789)
(789)
(789)
of cross-holdings
Subtotal of movements
linked to relations
3,286
0
(789)
0
0
0
2,497
5,217
7,714
with shareholders
– Effects of variations
in values of financial
(4,316)
(2,084)
(6,400)
(671)
(7,071)
instruments
57
57
0
57
– Accounting method changes
77
77
77
– Changes in perimeter
87,840
87,840
4,595
92,435
– Income for the period
(1,075)
(1,075)
(1,772)
(2,847)
– Other changes
Equity capital
at 31/12/2007
before appropriation
IFRS standards
431,342 243,480 106,359 110,686 (4,362) 87,840 975,345 113,134 1 088 479
– Appropriation
of earnings 2007
42,011 45,829 (87,840)
0
– Distribution 2008
concerning 2007
(14,119) (14,119)
(1,487) (15 606)
Equity capital
at 31/12/2007
after appropriation
IFRS standards
431,342 285,491 138,069 110,686
(4,362)
0 961,226 111,647 1 072 873
– Capital
increase
7,208 7,208
– Variation
in subsidiary
cross-holdings on
the parent company (5,929)
(1,046)
(6,975)
(6,975)
Subtotal
of movements
linked to relations
with shareholders
(5,929)
0
(1,046)
0
0
0
(6,975)
7,208
233
– Effects of variations
in values of
5,888 (73,249)
(2,946) (76,195)
financial instruments (79,137)
– A ccounting method changes
– Changes in perimeter
– F oreign-exchange variations
586 (592)
(6)
(6)
– Income for the period
22,193
22,193
4,541
26,734
8,176
10 8,186
(174)
8,012
– Other changes Equity capital
at 31/12/2008
IFRS standards
425,413 285,491 145,785
30,967
1,526
22,193 911,375 120,276 1,031,651
89
TABLE OF NET CASH FLOWS
2007
2008
IFRS
IFRS
Income before tax
119,119
15,235
+/- Net amortisation and depreciation expenses
on intangible and tangible assets
730
+/- Depreciation on positive goodwill and other fixed assets
+/- Net expenses to other provisions 18,485
(including technical insurance provisions)
+/- Share of results from companies consolidated according to the equity method - 3,154
- 57,975
+/- Net loss/(net gain) on investment activities
0
+/- Net loss/(net gain) on financing activities
23,668
+/- Other movements
Total of the non-monetary elements included in the net income before tax
and other adjustments
- 3,011
- 457,329
+/- Flows linked to operations with credit institutions
131,280
+/- Flows linked to operations with clientele
+/- Flows linked to other operations 688,004
affecting financial assets or liabilities
+/- Flows linked to other operations affecting - 136 719
non-financial assets or liabilities
- Tax paid -21,161
Net reduction/(increase in assets 204,075
and liabilities from operational activities
34,744
17,253
- 1,535
- 14,433
0
- 30,998
43,761
32,263
46,311
174,271
- 909 405
181 410
68,076
- 36,397
- 522,045
Total net cash flows generated
by the operational activity (A)
+/- Flows linked to financial assets and holdings
+/- Flows linked to investment properties +/- Flows linked to tangible and intangible fixed assets 320,183
- 196,242
-4,829 -12,630 - 440,990
498,159
8,443
-24,010
- 213,700
482,592
-8,492 -98,735 -14,353
-37,070
- 107,227
- 51,423
0
4
- 745
- 9,817
Net cash flows from operational activities Net cash flows from investment activities (B) Net cash flows from financing activities (C) Effects of variations in exchange rates on cash position and equivalent positions (D)
320,182 -213,700 -107,228 0
-440,990
482,592
-51,423
4
Cash position and equivalent positions at beginning of year (1)
Cash, CCP postal-giro a/cs, central banks (assets & liabilities) Accounts and demand loans from credit institutions 600,413
139,885 460,528 599,668
321,037
278,631
Cash position and equivalent positions at end of year (1) Cash, CCP postal-giro a/cs, central banks (assets & liabilities) Accounts and demand loans from credit institutions 599,668
321,037 278,631 589,851
225,804
364,047
-745 -9,817
Total net cash flows linked
to investment operations (B)
+/- Flows from or to shareholders +/-Other net cash flows from financing activities Total net cash flows linked
to financing operations (C)
Effects of variations in exchange rates on cash
position and equivalent positions (D)
Net increase/(decrease) in cash position
and equivalent positions (A + B+ C + D)
Variation in net cash position (1) The composition of the cash position and equivalent positions is obtained using the accounting balances of the demand and ordinary accounts withcredit
institutions.
CONSOLIDATED NOTES
AND APPENDICES
Note I – Bases for
drawing up the group
financial statements
T
he Crédit Coopératif Group’s annual accounts at 31
December 2008 were drawn up in conformity with
the IFRS standards in force at that date, as adopted by
the European regulations. They do not take into accountthe standards or interpretations published not
adopted in the EU or whose application is not yet obligatory. They were closed by the Board of Directors on 12
March 2009 and put before the General Meeting held on 28
May 2009, during which they can be modified. They are
made up of the balance sheet, the income statement, a table showing variations in equity capital, a table showing
cash flow, and the appendices.
The specific features of the Groupe Crédit Coopératif are set out below:
I.1 Particular features of the GroupThe consolidated financial statements of the Groupe Crédit
Coopératif consolidate the financial statements of Crédit Coopératif,
société anonyme coopérative de banque populaire à capital variable
(people’s bank in the form of a cooperative public limited company),
and those of all the (subsidiary or non-subsidiary) credit institutions
that have signed an association contract with the Crédit Coopératif,
under which the latter guarantees their liquidity and solvency, and
provides administrative and technical assistance.
I.2 Methods for drawing up
financial statements
I.3 Recourse to estimatesIn some fields, preparation of the Crédit Coopératif Group’s
financial statements requires formulation of hypotheses and
drawing up estimations on the basis of the information
available at 31 December 2008.
These estimations underlying preparation of the financial
statements have been drawn up in a context marked by
uncertainties concerning the economic prospects and highly
volatile markets. The main estimations and hypotheses put
forward by the management concern evaluation of the asset
depreciations and provisions, and fair value assessment of
financial instruments.
I.4 Absence of seasonal aspectsAs the Crédit Coopératif Group’s activities do not show any
seasonal or cyclical aspects, the income for the year is not
influenced by these factors.
I.5 Summary formatIn the absence of a model imposed by the IFRS repository,
the format used for the summary statements complies with
that proposed for summary statements by the French
national accounting council in its recommendation
n°2004-R.03 of 27 October 2004.
The subsidiaries BTP Banque, Inter-Coop, Intercop Location,
Batilease, BTP Capital Investissement, and Ecofi Investissements,
are fully consolidated owing to the fact that Crédit Coopératif
holds 50% or more of their capital.
Non-subsidiary credit institutions that have signed an
association agreement are also fully consolidated.
The companies in which Crédit Coopératif exercises a
significant influence, have been consolidated according to the
equity method. They are:
- ESFIN, a financial undertaking,
- COOPEST, a financial undertaking,
- CGI du Bâtiment, an insurance undertaking.
- COOPEST, entreprise à caractère financier.
91
CONSOLIDATED NOTES
AND APPENDICES
Note II – Group consolidation
perimeter at 31 december
2008
II.1 Changes in the consolidation perimeter:The consolidation perimeter of the Crédit Coopératif Group
at 31 December 2008 has undergone the following changes
as compared with the perimeter at 31 December 2007:
• a cquisition of the Polish Company Tise consolidated
under full integration on 11 July 2008,
• c reation of the BTP Capital conseil Company
consolidated under full integration,
• c reation of the Coopest Company
consolidated using the equity method.
II.2 The consolidation perimeter breaks down as follows:At 31 December 2008
I. CREDIT INSTITUTIONS
1) Consolidating Entity
Crédit Coopératif (SCA)
CONSOLIDATING ENTITY
Head office: 33, rue des Trois-Fontanot 92000 NANTERRE
2) Subsidiary partner credit institutions
BTP Banque (SA)
Inter-Coop ( SAS)
GROUPE BATILEASE (BATI LEASE INVEST)
Controlling% held
% stake
Integration
% of integration
method
100%
100%
100%
100%
100%
100%
IG
IG
94,88%
94,88%
100%
IG
3) Non-subsidiary partner credit institutions
Groupe EDEL (MONINFO)
33,94%
33,94%
100%
Head office: Parc de la Plaine, 5 avenue Marcel Dassault
IG
Head office: 2, avenue Kaarst Euralliance
porte A BP 52004 - 59777 EURALILLE
BP 5806 - 34505 TOULOUSE CEDEX
MONINFO
BP 5806 - 34505 TOULOUSE CEDEX
33,75%
33,75%
33,75%
Head office: Parc de la Plaine, 5 avenue Marcel Dassault
IG
At 31 December 2008
Controlling% held
% stake
% of integration
C
CAISSE SOLIDAIRE
61,22%
100%
3, Contour Saint Martin - 59100 ROUBAIX
O
SOFINEF
4,34%
100%
N
114, Boulevard du 11 Novembre
69625 VILLEURBANNE Cedex
T
SOCOREC
R
77, rue de Lourmel - 75015 PARIS
0%
IG
IG
100%
IG
4,59%
1,69%
3,83%
100%
100%
100%
100%
17,23%
1,47%
0,25%
100%
100%
100%
IG
3,44%
100%
IG
0,90%
100%
IG
I
GEDEX DISTRIBUTION
O 24, rue Chaptal - 92300 LEVALLOIS PERRET
0%
100%
IG
N 100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
IG
IG
IG
IG
100%
100%
100% IG
Groupe ESFIN (ESFIN PARTICIPATIONS, IDES, SPOT) 37,58%
37,58%
37,58%
ME
100% 100% 100% IG
100% 99,46% 100% IG
35,53% 35,53% 35,53% ME
SAS Sociétariat Crédit Coopératif Banque Populaire 100% III. NON-FINANCIAL UNDERTAKINGS BTP Capital Investissement
79,42%
100% 79,42%
100% 100%
IG
Intercop Location (ex SICOMI COOP)
78,63%
78,63%
100%
IG
33,40%
33,40%
33,40%
A
SOFIGARD
T
SOFINDI
11, rue de Belat -16000 ANGOULEME
S
SOFISCOP
7, rue Herpin Lacroix BP 6647- 35006 RENNES
D’
SOFISCOP SUD EST
70, rue Maurice Flandrin BP 3164
A 69211 LYON Cedex 03
13 bis, boulevard Talabot- 30000 NIMES
S SOFIRIF
Z.I. BETHUNES BP 9032 - 95071 CERGY PONTOISE
S
SOMUPACA
9, place de la Liberté - 83000 TOULON
O SOMUDIMEC
C 2, chemin du Vieux Chêne BP 79 - 38242 MEYLAN
I
C.M.G.M.
39-41, rue Louis Blanc - 92038 PARIS LA DEFENSE Cedex
A T
NORD FINANCEMENT
40, rue Eugène Jacquet - 59078 MARCQ EN BAROEUL
II. FINANCIAL UNDERTAKINGS Union des Sociétés du Crédit Coopératif (GIE)
Transimmo (SARL)
Société Civile Immobilière du Crédit Coopératif
Société Civile Immobilière du Crédit Coopératif de Saint-Denis
Siège Social : 251, boulevard Péreire 75852 PARIS Cedex 17
Head office: immeuble La Fayette La Défense 5
2, place des Vosges 92400 Courbevoie
TISE
Towarzystwo Inwestycji spoleczno
Ekonomicznych S.A. ROK : 2008
00-158 WARSZAWA ul. NALEWKI 8/27
BTP Capital conseil
Head office: 33, rue des Trois Fontanot – 92000 NANTERRE
Coopest
Avenue Jules César N°2 boîte 7
0,27%
Intégration
method
IG
IG
IG
IG
IG
IG
Woluwe-Saint-Pierre 1150 BRUXELLES
Head office: 33, rue des Trois Fontanot
92000 NANTERRE
Head office: 33, rue des Trois-Fontanot
92000 NANTERRE
IV.INSURANCE UNDERTAKINGS
Head office: 6, rue La Pérouse - 75016 PARIS
SCA: Société Coopérative Anonyme (cooperative public limited company) SAS: Société Anonyme Simplifiée (simplified public limited company)
IG
ME
FC: Fully Consolidated
EM: Equity method
93
CONSOLIDATED NOTES
AND APPENDICES
Note III – General principles
and methods of evaluation
T
he evaluation methods adopted comply with IFRS
standards relating to the consolidation of financial
statements as well as those relating to operations
recorded.
Among these operations, the procedures for handling the
following items are specifically highlighted:
III.1 FINANCIAL ASSETS AND LIABILITIES
AT A FAIR VALUE BY INCOMEAssets and liabilities at a fair value are broken down into
those classed as transactions and those which relate to
options within this category in accordance with standard
IAS 39.
Only assets and liabilities in one of the following categories
may be valued at a fair value as an option:
- Hybrid instruments comprising one or more incorporated
derivatives,
- A group of assets or liabilities valued and managed at a fair
value,
- An elimination or significant reduction in an inconsistency
in accounting treatment.
These assets and liabilities are valued at a fair value at the
applicable rate when the financial statements are drawn up
with a variation in value within the income statement item
entitled “net gains or losses on financial instruments at a fair
value by performance”. The proportion relating to interest is
posted to “interest income or expenses”.
No depreciation is entered for these assets, the counterparty
risk being included in the market value.
On initiation, the fair value is normally the price paid or
received. This fair value should be determined during the
course of subsequent valuations. It should be either the price
quoted when the instrument is listed on an active market, or,
in the absence of an active market, a value resulting from a
valuation technique which uses observable data from recent
transactions, cash flow discounting or option valuation
models.
III.2 DERIVATIVE HEDGING INSTRUMENTS
- ASSETS AND LIABILITIESIn accordance with standard IAS 39 a derivative meets the 3
following criteria:
- Its value varies in line with variations in the value of a reference
item (underlying), which may be a fixed interest rate, the price of
a financial instrument, the price of a raw material, an exchange
rate, price or rate indices, a credit rating or another variable,
And
- It does not require or requires a low level of net initial
investment,
And
- It is paid at a future date.
Standard IAS 39 specifies three types of hedging:
- Cash flow hedging,
- Fair value hedging,
- Hedging of a net investment denominated in foreign
currency.
Hedging a net investment denominated in foreign currency is
not a method used within the Group.
III.2.1 Cash flow hedging
Cash flow hedging is used to cover the interest-rate risk for
assets and liabilities at a revisable rate as well as future
transactions at a fixed rate.
Derivatives are valued in the balance sheet at their fair value,
the effective proportion of variations in value are posted to
equity, in the line entitled «unrealised or deferred gains or
losses». Recycling in the income statement takes place as net
banking income at the same rate as posting hedged cash flow
to the income statement. The hedged item continues to be
posted in accordance with its own valuation method.
The principle adopted in order to test the effectiveness of
hedging involves creating “hypothetical” derivatives, whose
characteristics are matched to those of the hedged item. A
prospective and retrospective effectiveness test is carried out
each time the financial statements are drawn up by comparing
variations in the value of the hypothetical derivative with the
hedging derivative.
Each time the financial statements are drawn up, variations in
the base fair value of coupons for derivative hedging
instruments are compared with those for hypothetical
derivative instruments. The ratio of their respective variations
must be between 80% and 125%.
When the hedged instrument is sold or if a future transaction
is no longer highly probable, the cumulative unrealised gains
or losses entered in equity are immediately transferred to the
income statement.
When the hedging relationship is broken and if the hedged
item still exists thereafter, deferred gains or losses are
amortised as equity in the income statement, at the same time
as being recorded in the income statement as hedged cash
flow. After the break, variations in the fair value of the former
hedging derivative are entered in the income statement.
III.2.2 Fair value hedging
Fair value hedging is specifically used to cover assets and
liabilities at a fixed rate. Variations in the fair value of the
derivative are entered in “net gains or losses on financial
instruments at a fair value by performance”. Re-discounting
of the derivative is entered in «interest income or expenses».
The hedged item, by way of symmetry, is revalued in terms of
its component of the hedged price. Financial assets or liabilities
valued at their amortised cost and benefiting from hedging
continue to form the subject of an entry using the accrued
interest method to which is added the value of the hedged risk
entered in the income statement item entitled “gains or losses
on financial instruments at a fair value by performance”.
When the hedging relationship is created, the Group
establishes a document presenting specifically the items in
question (hedged item and hedged derivative), the hedging
strategy (hedged risk, accounting rating of the hedging) and
the methods for testing effectiveness (prospective valuation,
retrospective valuation, measure of ineffectiveness, frequency,
test results, etc.). Prospective / retrospective valuation consists
of comparing variations in the current value of the asset or
liability hedged at a fixed rate with those of the hedging
instrument. Calculation of the current value of the hedged risk
is neutralised by non-hedged risk components (credit spread
and liquidity).
A prospective valuation is established qualitatively by verifying
that the characteristic terms of the hedged asset or liability
correspond strictly with those of the hedging instrument.
Each time the financial statements are drawn up, variations in
the base fair value of coupons for derivative hedging
instruments are compared with those for hypothetical assets/
liabilities (synthetic instruments representing the asset/
liability items to be hedged at a risk-free rate). The ratio of
their respective variations must be between 80% and 125%.
In the event of break in hedging (sale of the derivative or a
failure to meet hedging criteria), prospective hedging
accounting ceases: the hedged asset or liability ceases to be
adjusted in terms of the hedged risk component and
cumulative adjustments since the last date for evaluating
effectiveness are amortised in the income statement in
accordance with the effective interest rate method. In the
event of the early redemption of the hedged item, reversal is
immediate.
III.3 Financial assets available for saleFinancial assets available for sale (AFS) represents a residual
category containing assets that do not fulfil the conditions
governing other categories outlined by standard IAS 39. For the
Group, this category essentially comprises securities, whether
these are fixed-income securities or variable-income securities
(including portfolio-activity securities and non-consolidated
shareholdings in accordance with IFRS standards).
On acquisition, securities classified as AFS are valued at their fair
value. Within the Group, no initial discount is recorded, the
acquisition cost being equivalent to the market price.
The price for entry into the balance sheet corresponds to the
acquisition cost of the security, plus transaction costs attributable
to the acquisition of securities (brokerage fees, commission paid
to stock broking companies, stock exchange tax) increased by
accrued interest.
When subsequent financial statements are drawn up, these
securities are valued at a fair value in equity notwithstanding the
entry of interest, amortisation of discounts / premiums and
depreciation for fixed-income securities in the income statement.
Where these are variable-income securities, the entire variation in
the fair value is entered as equity, with the exception of
depreciation, which is entered in the income statement.
For listed securities, the rate when the financial statements are
drawn up applies. For unlisted securities, the valuation method
used is the mathematical value possibly adjusted by information
on the economic prospects of the entity, taking account of the
liquidity of the securities.
A depreciation test is carried out each time the financial
statements are drawn up where the following indicators coincide:
A fall in the valuation rate below the acquisition value for six
consecutive months
And a loss in value of at least 30%.
Where there is a target depreciation index, including long-term
depreciation for variable-income securities, the cumulative loss
entered in the item entitled “unrealised or deferred gains or
losses” is excluded from equity and recycled in the income
statement.
Losses in the value of variable-income securities classified as AFS
are entered in net banking income in the line entitled “net gains
or losses on financial assets available for sale”. When an equity
instrument has been depreciated, any additional loss of value is
entered in the income statement. Revaluations are entered as
equity.
Unrealised capital losses on fixed-income securities are capitalised
as a provision for depreciation of securities (cost of risk line in the
income statement) since this provision can be taken back into the
income statement in the event of a subsequent increase in the
value of the security equivalent to the depreciation recorded
previously.
Interest-rate hedged AFS securities covered by derivatives are
valued at their fair value by income for the hedged risk.
Actuarial deferment of the premium or discount, as well as the
entry of interest for fixed-income securities, is not called into
question by hedging.
95
III.4 Loans and receivables from credit institutionsand clientsIII.4.1. General provisions
«Loans and receivables» are financial assets with fixed or
determinable payments, which are not listed on an active
market and which the Group does not intend to re-sell.
All loans to clients of the Crédit Coopératif Group are entered
in the category entitled “loans and receivables” including
portfolios of loans acquired. All interbank credits in assets are
entered in the category entitled «loans and receivables».
Loans and receivables are valued subsequently at their
amortised cost, which requires the items to be included in the
TIE to be determined. No internal costs have been entered.
External costs mainly consist of commission paid externally
within the framework of setting up loans. They mainly consist
of commission paid to providers for the contribution of
business.
Income from transactions is income linked directly to the
initiation of new loans. It comprises placement fees invoiced
to clients, re-invoicing of costs and financing commitment
commission.
The fair value of loans and receivables from credit institutions
and clients is determined by discounting future anticipated
cash flow.
The fair value of items with an initial term of less than one
year and variable-rate assets is deemed to be equal to the
book value.
III.4.2 Depreciation on loans and receivables
Standard IAS 39 defines the methods for calculating and
entering recorded losses in value on loans in the accounts.
A receivable is “depreciated” if the two following conditions are met:
- The existence of target depreciation indices on an individual
or collective basis: this is a case of “triggering events” or “loss
events” which identify a counterparty risk and which occur
after the initial entry into accounts of the loans in question,
- These events generate ascertained losses (“incurred losses”)
in the value of future estimated cash flow for loans and
measurement of this impact must be reliable.
Depreciation is determined as the difference between the amortised
cost and the recoverable amount, i.e. the discounted value of future
estimated recoverable cash flow, taking into account the effect
of securities at the original effective rate of interest.
Depreciation movements are entered in cost of risk.
The IAS benchmark document distinguishes between two
types of depreciation:
- Individual depreciation,
- Collective depreciation.
> Individual depreciation
Individual depreciation is calculated on the basis of a schedule,
receivable by receivable, by assigning future cash flow, determined
in accordance with historic recovery records by category of
receivable. Securities are used to limit the extent of depreciation
and where a security covers the entire risk of default, no
depreciation is recorded.
> Collective depreciation
Collective provisions cover a risk that has not yet been
identified in terms of an individual receivable. In accordance
with standard IAS 39, outstanding loans are grouped into
uniform risk portfolios.
The calculation method used within the Group is mainly based
on the benchmark document for measuring risk put in place
as part of the Basel II reform. It applies to a convergence of
three portfolios (individual / professional / corporate) and
three types of risk (pre-doubtful / non-doubtful default /
sectoral). The breakdown by portfolio obeys the segmentation
recommended in the benchmark document for Basel II and
healthy loans are regrouped into uniform risk portfolios.
Calculation is undertaken using the IT system provided by the
Banque Fédérale des Banques Populaires. Use is made of an
expert judgement, the calculation being adjusted by the
appropriate default rate for the particular loan duration.
III.5 Financial assets helduntil maturity-
These are financial assets (excluding derivative instruments)
with fixed or determinable payments, with a fixed or
determinable maturity date and which the Crédit Coopératif
Group intends and has the means to hold until maturity.
They are initially entered in the accounts at their fair value,
including transaction costs. They are then valued at their
amortised cost in accordance with the effective interest rate
method, which includes amortisation of premiums and
discounts corresponding to the difference between the
acquisition value and the redemption value as well as the
acquisition costs of securities.
They form the subject, each time the financial statements are
drawn up, of a depreciation test leading, where necessary, to
the recording of depreciation in the income statement, in
terms of the cost of risk. Income received on these securities is
presented in the item entitled “interest and similar income” in
the income statement.
The fair value of securities held until maturity is obtained on
the basis of the rating, where it exists, and meets the criteria
of standard IAS 39. If there is no rating, the fair value is
obtained by discounting future anticipated cash flow.
III.6 Investment propertiesIn accordance with standard IAS 40, a property is entered in
the accounts as an investment property where it is held in
order to secure rent or in order to increase the value of capital,
or both.
The conditions for entry into the accounts are identical to those
detailed in the paragraph relating to fixed assets, i.e. where:
- It is likely that the future economic benefits associated with
this asset will accrue to the company,
- The cost of this asset can be valued in a reliable manner.
The accounting treatment of property investments is identical
to that for fixed assets (valuation at cost minus cumulative
amortisation and losses in value).
The gains or losses from selling the investment property are
entered in the income statement in the line entitled “Net
income or expenses for other activities”.
III.7 Capital assets Capital assets include tangible operating assets, property
acquired with a view to outright rental and property
temporarily not leased within the framework of a direct
financing lease as well as intangible assets.
In accordance with standards IAS 16 and IAS 38, a tangible or
intangible asset is entered in the accounts as an asset if:
- It is likely that the future economic benefits associated with
this asset will accrue to the company,
- The cost of this asset can be valued in a reliable manner.
In accordance with IFRS 1, the Group decided not to opt for
valuation at a fair value for the opening balance sheet of 2006.
III.7.1 Tangible assets
Gross amounts outstanding are broken down into items based
on the existence of different periods of utilisation for each of
the separate items constituting the same asset.
Borrowing costs are not included when calculating the gross
value of assets.
The useful life values applied within the Group are as follows:
ItemsUseful Life
Land
Non destructible external walls
External walls/roof/watertightness
Foundations/framework
External refurbishment
Technical installations
Interior fittings
Not applicable
Not applicable
20-40 years
30-60 years
10-20 years
10-20 years
8-15 years
For other categories of tangible assets, the useful life is generally
within a bracket of 5 to 10 years.
The items are amortised on the basis of the gross value minus the
residual value and their useful life. The residual value is defined as
the current value of the asset at the end of its probable useful life.
III.7.2 Intangible assets
Intangible assets are valued at their acquisition cost.
As regards software developed internally, development costs
are capitalised if they meet the conditions outlined by standard
IAS 38.
Leasing rights are amortised on a linear basis over the residual
life of the lease and, where necessary, are subject to
depreciation on the basis of the market value.
III.8 Shareholdings in companiesconsolidated accordingto the equity method
Esfin and CGI Bâtiment, companies in which Crédit Coopératif
exercises a significant influence, have been consolidated
according to the equity method. This method makes it possible
to substitute, for the book value of securities, the proportion
they represent in the equity of consolidated companies.
At 31 December 2008, the value of securities included in the
balance sheet totalled €29.812 million, of which ESFIN for
€17,200 million, Coopest for €1.068 million and CGI du
Bâtiment for 11.544 million.
The consolidated income statement includes the proportion of
the net income of companies consolidated according to the
equity method, i.e. €343,000 for Esfin, €18,000 for Coopest
and €1,174,000 for CGI du Bâtiment.
III.9 Goodwill on acquisitionPositive goodwill is entered in the balance sheet at its historic
cost in its original currency and is then converted using the
exchange rate on the period-end date. Any adjustments to the
acquisition cost are made within a period of 12 months from
the acquisition date.
Negative goodwill is entered directly into the income
statement as income in the item entitled “variation in the
value of goodwill”.
Positive goodwill is not amortised but forms the subject of a
depreciation test as soon as indications of losses in value
emerge or at least once a year, using the net current value
method for future cash flow. On 31/12/2008, positive goodwill
recorded for Ecofi Investissements did not form the subject of
depreciation.
III.10 Payables to creditinstitutions and clientsPayables to credit institutions and clients are valued in
accordance with standard IAS 39 in other financial liabilities
using the method known as amortised cost method.
On initiation, these payables are entered at their fair value,
which corresponds to market conditions for the Group, which
consequently does not result in any discount or initial
premium being entered.
Entries are made including transaction costs and relate to
liabilities with an initial maturity of more than one year.
During the course of subsequent valuations on the dates for
drawing up the financial statements, the amortised cost
method consists of reducing the debt by repayments. Interest
accrued or outstanding is entered in the income statement in
the item entitled “interest and similar expenses”.
For structured term deposit accounts classified as payables to
credit institutions and clients, the incorporated derivative and
the host contract are entered separately in the accounts when
the three following conditions are met:
- The hybrid contract is not entered with a fair value by
income,
- The incorporated instrument complies with the definition of
a derivative,
- The economic characteristics of the derivative are not
“closely linked” to those of the host contract.
97
The incorporated derivative is entered in the accounts at its
fair value and variations in the fair value are entered in the
income statement in accordance with the treatment reserved
for derivative instruments, and the remaining host contract is
entered at its amortised cost.
The fair value of payables to credit institutions and clients is
determined by discounting future payable cash flow. Where
there is a rating fulfilling the criteria of standard IAS 39, the
rating is used.
III.11 Liabilities in the formof securities issued Liabilities in the form of securities (short-term loan notes,
interbank market securities, etc.) are broken down depending
on the nature of their base, with the exclusion of subordinated
securities classified in the item entitled “subordinated debt”.
These payables are valued at the fair value on initiation, i.e.
their issue price minus possible transaction costs, then valued
at their amortised cost using the effective interest rate method
(TIE).
No internal income or expenses are included in the TIE
calculation. External costs, which correspond to transaction
costs, are included. Issues are made under market conditions
without entering a market discount.
Premiums/discounts relating to the difference between the
issue value and the redemption value form an integral part of
determining the TIE. Actuarial deferment of the discount
represents interest (net banking income). Accrued interest on
these payables is posted to a counterparty related-payables
account for the related income-statement items.
For structured issues classified as liabilities in the form of
securities, the incorporated derivative and the host contract
are entered separately in the accounts when the three
following conditions are met:
- The hybrid contract is not entered with a fair value by
income,
- The incorporated instrument complies with the definition of
a derivative,
- The economic characteristics of the derivative are not
“closely linked” to those of the host contract.
The incorporated derivative is entered in the accounts at its
fair value and variations in the fair value are entered in the
income statement in accordance with the treatment reserved
for derivative instruments, and the remaining host contract is
entered at its amortised cost.
Issues of structured securities form the subject, in accordance
with standard IAS 39, of a branching off of the incorporated
derivative, which is entered in the accounts at its market
value.
The flow of loans and liabilities on securities is updated
depending on the value of market rates, including a credit risk
on the date for drawing up the financial statements for a
liability with the same residual maturity.
III.12 Provisions III.12.1 Provisions for liabilities
Provisions for liabilities represent liabilities whose maturity or
amount is in doubt. They are entered in the accounts subject
to the existence of a current obligation resulting from a past
event, which will probably or certainly provoke an outflow of
resources, the amount of which may be estimated in a reliable
manner.
The amount entered in the accounts as a provision corresponds
to the best estimate of the expenditure needed to settle the
current obligation on the period-end date.
Provisions are reviewed on each period-end date and adjusted
to reflect the best estimate on that date. No possible liabilities
are entered.
In accordance with standard IAS 37, a provision for
contingencies is entered in the accounts for a financing
commitment if a risk of loss appears as a counterparty to this
commitment (risk of failure during the course of the period of
the undertaking). In this case, the institution covers the risk of
a future failure, the financing commitment being irrevocable.
Provisions and reversals of provisions are entered in the
income statement on the appropriate lines for the nature of
the future expenditure covered.
III.12.2 Building-saving provisions
The aim of building-saving provisions is to cover the two risks
presented by the system:
- The risk of granting future credit at a regulated rate that is
below market conditions,
- The risk of remunerating the savings amassed at
disadvantageous conditions in comparison to future market
conditions.
These two risks are evaluated in a prospective manner, until
the redemption of outstanding savings entered in the balance
sheet, resulting in the need to shape the development of
current outstanding amounts (collection of funds and
conversion of credit) on the basis of assumed future rates and
client behaviour.
In order to determine the building-savings provision, the
Crédit Coopératif Group uses the model developed by the
Banque Fédérale des Banques Populaires. The method
comprises three stages:
Stage 1: Modelling a 30 year outflow rule, on the basis of
outflows recorded for all live generations for the past five
years, including sensitivity to client behaviour, both for
investment outflows and conversion into credit, depending on
the difference between the regulated rates and market rates.
Stage 2: Generation of 10,000 outflow scenarios on the basis
of a random sample of 10,000 rate paths determined using a
method known as the Monte Carlo method (the OrnsteinUhlenbeck process), by applying a spread process with a
regression to the mean. This method includes a correlation
matrix between the different indices based on a 10-year
historic record; the target level of regression to the mean for
each of the indices being determined on the basis of longterm forecasts from the Group’s economists, which are also
applied to management of the balance sheet.
Stage 3: Calculation of the final provision is a result of the
average differences recorded for each of the scenarios
between cash flow established on the basis of regulated rates
(savings excluding government premiums or credit) and that
calculated on the basis of future market rates determined by
the model for each outflow year for equivalent income; these
differences are updated using the mean curve for month-end
rate swaps for the past twelve months. For the savings phase,
the equivalent income is indexed to the Fidélis progressive
term deposit accounts, available within the Banque Populaire
network; for the credit phase, the rates are determined with
reference to the average margin recorded over the past three
years between the 5-year no-risk rate (average term for credit
put in place) and the rate for the production of home credits
granted under market conditions.
Provisions are only created for net losses by rate generation,
net gains not being entered. Finally, each of the 10,000
provisions is calculated with a deduction for cash flow relating
to outstanding amounts seen as unaffected by changes in
rates. In order to be prudent, this no-risk profile is capped at a
level recorded when each generation reaches its tenth year,
and is then discharged in a linear manner over the following
twenty years.
The risks for Building-Savings Accounts (CEL) are obtained
using a similar method, with the aid of distinct conversion
assumptions. Nevertheless, only the risk of conversion into
credit is provisioned, remuneration of the savings phase being
revisable and indexed to market rates. The future value of CEL
credit rates is determined by the model based on the regulatory
formula.
Finally, the total provision includes the difference recorded for
stocks of live PEL and CEL loans on the calculation date,
between discounted future cash flows and the market rate for
the year in which these credits were put in place, on the one
hand, and the regulated rate granted to the client, on the
other hand. This difference is then drawn-down actuarially
over the maturity period of the loans in question..
III.12.3 Provisions for corporate liabilities
The provision entered in the balance sheet represents the
actuarial value of retirement commitments and assimilated
allowances concerning serving staff. It is reduced by the
market value of assets applied to cover commitments and
reduced or increased by the resulting actuarial differences:
- Experiential differences due to demographic variables
- Changes in actuarial assumptions (discount rate, outgoing
rate, salary increase rate)
- Differences recorded between the actual return and the
anticipated return from hedged asset plans.
At 31 December 2008, the bank’s main actuarial hypotheses
were as follows:
- Adjustment rate = 4.25%,
- Expected rate of return = 0%, 2% or 4% depending on the
funds. The corridor method has been applied for retirement and
similar commitments (retirement lump sums).
A reminder is given here that evaluation of the retirement
lump sums was affected in 2005 by the French ministerial
application order of 18 July 2005 authorising employers to
arrange for staff to retire without having to pay contributions.
This impact was analysed as a change of scheme to be
depreciated over the remaining period for acquisition of right
as from July 2005.
At 31 December 2007, the evaluation of the retirement lump
sums took into account the French social security finance law
for 2008:
- The lump sums paid to staff on retirement were subject to
payment of employer contributions at a 25% rate from 11
October 2007 to 31 December 2008, and then 50% as from
1 January 2009,
- As from 2010, it will no longer be possible to arrange for
staff to retire before their 65th birthday.
As from 1 January 2008, the impact stemming from these
legal modifications was spread over the average period before
retirement as noted in 2005.
sums took into account the French social security finance law
for 2009:
- The possibility of arranging for staff to retire at the age of 65
was conserved for 2009 only,
- As from 2010, the possibility of arranging for staff to retire
is no longer envisaged.
legal modifications will be spread over the average period
before retirement as noted in 2005.
III.13 Subordinated debtSubordinated debt distinguishes between receivables or bonds
issued for repayment, which will only take place after all the
preferential or unsecured creditors have been paid, but before the
repayment of loans, near-equity loans and super subordinated
loans. It is valued using the amortised cost method.
III.14 Repo and reverse repooperations In the assignor’s accounts: The securities are not removed
from the accounts. The Group enters a liability representing a
commitment to refund cash received (“Securities delivered on
repo”). This debt is a financial liability entered at its amortised
cost and not at its fair value.
In the assignee’s accounts: There is no entry of assets received
but of a receivable as regards the assignor representing the
cash loaned. The figure drawn down to assets is entered in an
account entitled “Repo securities received”. This receivable is
entered in the category entitled “loans and receivables”.
When subsequent financial statements are drawn up, the
securities continue to be valued in the assignor’s accounts in
accordance with the rules for their original category. In the
assignee’s accounts, the receivable is left at its nominal value
in loans and receivables.
99
CONSOLIDATED NOTES
AND APPENDICES
Note IV – Further information
The consequences of the subprime crisis for the financial activities_
of Crédit Coopératif_
T
he subprime crisis, which emerged during the summer
of 2007, has had major consequences for the financial
management of a large number of banks, and
investment banks in particular. It should be
remembered that this crisis, caused by an extremely severe
rise in the level of defaults on the most high-risk American
mortgage loans (representing outstanding debt of more
than 1,000 billion dollars, with the dollar itself experiencing
a major rise in comparison to 2005 and 2006), has spread
throughout the entire planet because of securitisation: loans
have been transferred by institutions, which have extended
them to entities created for this purpose (special purpose
vehicles), which issue different ranking bonds (from AAA to
the subordinated bracket) in order to refinance themselves.
Crédit Coopératif’s financial investments are made partly in
the form of variable-rate or fixed-rate bonds hedged by
swaps. The maturity of bonds (3 years maximum, without
exception) and the policy adopted by Financial Management
have enabled our institution to escape from the investments
used for subprime securitisation. All of the securitisation held
by the Crédit Coopératif, apart from securitisation mutual
funds for small and medium sized French companies, linked to
our commercial activities, is less than 20 million euros and
essentially comprises securitisation for small and medium
sized German companies purchased after the markets fell. The
amount of securitisation purchased before the crisis is less
than 6 million euros and comprises AAA brackets, diversified
in terms of both sector and geographically.
CONSOLIDATED NOTES
AND APPENDICES
Note V – Notes
relating to the balance sheet
V.1 FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE BY INCOME
V.1.1
FINANCIAL ASSETS AT FAIR VALUE BY INCOME
Notes
2008
2007
Securities relating to trading operations
Securities
- Fixed-income securities
- Variable-income securities (1)
Financing against repo stock or securities received
Derivative instruments excluding hedging
VI.1.6
- Trading operations
- Other items
Securities at fair value as an option
Securities
- Variable-income securities (1)
Financing against repo stock or securities received
Loans and receivables at fair value by income
Loans and receivables at fair value as an option
Loans and receivables at fair value – held for the purpose of trading
185
185
0
185
0
16,877
16,877
0
9,622
9,622
5,247
4,375
0
0
0
0
4,341
4,341
4,141
200
0
6,008
6,008
0
24,857
24,857
24,857
0
0
0
0
0
TOTAL
26,684
35,206
(1) The breakdown of variable-income securities valued on a stock market (listed securities) or in accordance with another
estimation method is as follows:
> VARIABLE-INCOME SECURITIES AT FAIR VALUE BY INCOME
2008
2007
Valuation onOther valuation Total Valuation onOther valuation
a stock market
methods a stock market
methods
Securities
relating to trading operations
Total
185
0
185
200
0
200
Securities at fair value
by income as an option
4,375
0
4,375
0
0
0
Total
4,560
0
4,560
200
0
200
101
V.1.2
Conditions for classification of financial assets at fair value as an option
2008
In
thousands
of euros
Book value Accounting bias
at
31 december 2008
Management at fair value
Existence of an
incorporated derivative
Loans or receivables
from credit institutions
0
0
0
0
Loans or receivables
from clients
0
0
0
0
Fixed-income securities
5,247
312
0
4,935
Variable-income securities
4,375
4,375
0
0
Total
9,622
4,687
0
4,935
Use of the fair value option is seen as providing more relevant information in the first two cases presented and where there are
significant and separable incorporated derivatives.
V.1.3
FINANCIAL LIABILITIES AT FAIR VALUE BY INCOME
In thousands of euros at 31 december 2008
Notes
2008
Securities at fair value relating to trading operations
Securities
- Variable-income securities
Securities or stock delivered on repo Securities at fair value by income as an option
Securities
- Variable-income securities
Securities or stock delivered on repo
Derivative instruments excluding hedging
V.1.6
Other liabilities at fair value by income 0
0
0
0
0
1,522
1,522
1,522
0
0
17,998
3,413
Total
22,933
2007
0
0
0
0
0
1,343
1,343
1,343
0
0
4,744
5,476
11,563
V.1.4
Financial assets at fair value as an option and credit risk
The book value of financial liabilities at fair value by income
corresponds to the fair value of instruments entered in
the balance sheet.
The amount contractually due on maturity represents,
for borrowing, the amount of capital remaining due plus
deferred interest. For liabilities represented by a security,
the redemption value is applied.
Book
value
2008
Amount Difference
contractually
due on maturit
(1)
(2)
Variation in the fair value financial liabilities
at fair value as an option
(1) - (2)
Period
Cumulative
Payables to clients
Subordinated debt
Other liabilities (including repo)
0
3,413
1,522
0
0
0
3,500
1,500
0
0
0
(87)
22
0
0
0
437
171
0
0
0
(87)
14
0
0
Total
4,935
5,000
(65)
608
(73)
2007
Book value
(1)
Amount Difference
contractually
due on maturit
(2)
(1) - (2)
Payables to clients
Subordinated debt
Other liabilities
0
5,476
1,343
0
0
0
6,000
1,500
0
0
0
(524)
(157)
0
0
Total
6,819
7,500
(681)
V.1.5
Conditions for classification of financial liabilities at fair value as an option
Book
value
Accounting bias
2008
Management
at fair value
Existence of an
incorporated derivative
Payables to clients
Subordinated debt
Other liabilities
0
3 413
1 522
0
0
0
0
0
0
0
0
0
0
0
0
0
3 413
1 522
0
0
Total
4 935
0
0
4 935
Use of the fair value option is seen as providing more relevant information in the first two cases presented and where there are
significant and separable incorporated derivatives.
103
V.1.6
Derivative hedging instruments – assets and liabilities
In
thousands of euros
2008
at
31 december
NotionalAssets
Liabilities
Notional
Firm transactions
- Interest-rate derivatives
- Foreign-exchange
derivatives
- Share derivatives
- Other contracts
Optional transactions
- Foreign-exchange
derivatives
- Share derivatives
- Other contracts
Credit derivatives
Total
2007
Assets
Liabilities
1,043,934
841,233
16,206
10,536
17,609
11,576
1,108,898
595,225
5,095
2,307
4,605
1,967
197,878
5,670
6,032
496,272
2,788
2,637
0
4,823
0
0
0
1
0
17,401
0
0
0
1
108,513
108,513
671
671
389
389
77,312
77,312
913
913
139
139
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,152,447
16,877
17,998
1,186,210
6,008
4,744
V.2 Derivative hedging instruments – assets and liabilitiesV.2.1
Cash flow hedging
In
thousands of euros
2008
at
31 december
NotionalAssets
Liabilities
Notional
Firm transactions
- Foreign-exchange
derivatives
- Share derivatives
- Other contracts
- Foreign-exchange
derivatives
- Share derivatives
- Other contracts
Credit derivatives
Total
2007
Assets
Liabilities
153,986
153,986
5,362
5,362
2,993
2,993
250,851
250,851
0
0
6,631
6,631
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
153,986
5,362
2,993
250,851
0
6,631
V.2.2
FAIR VALUE HEDGING
2008
In
thousands of euros
NotionalAssets Liabilities
Notional
at
31 december
2007
Firm transactions
- Foreign-exchange
derivatives
25,885 92,504
25,885 92,504
36,382
36,382
27,014
27,014
1,425,417
1,425,417
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,099,111
36,382
27,014
1,425,417
- Share derivatives
- Other contracts
- Share derivatives
- Other contracts
Dérivés de crédit
Total
Liabilities
1,099,111
1,099,111
- Foreign-exchange
derivatives
Assets
25,885 92,504
V.3 Financial assets available for saleIn thousands of euros at 31 december
Loans outstanding
- Loans and receivables
- Related receivables
- Other
2008
0
0
0
0
Securities
- With a fixed income
- With a variable income
- Related receivables
1,890,290
1 367,629
500,950
21,711
Total before depreciation
1,890,290
Depreciation
- Loans and receivables
- Variable-income securities Total
(48,706)
0
(43,307)
(5,399)
1,841,584
2007
2
0
0
2
2,302,718
1,976,437
303,113
23,168
2,302,720
(2,421)
0
0
(2,421)
2,300,299
105
V.4 Loans and receivables from credit institutions and clientsV.4.1
In thousands of euros 31 december
Notes
2008
Healthy loans
Healthy loans
V.4 1.1
Collective depreciation Net
1 200 183
0
1 200 183
Doubtful loans
Doubtful loans
Individual depreciation Net
1 005
(1 005)
0
1 200 183
Total
(1)
2007
1 001 139
0
1 001 139
173
(173)
0
1 001 139
(1) At 31 December 2007, the fair value of loans and receivables from credit institutions, determined in accordance with the
procedures presented in note V.6.7, stood at 1,212,256,000 euros.
V.4.1.1
Healthy loans for credit institutions
Notes
Financing leases 2008
2007
0
0
Accounts and loans 882,791 740,246
Overdrafts on current accounts 292,524 205,926
4,500 4,500
Financing against repo stock or securities received 0
38,150
Other items 0
0
20,368 12,3177
1,200,183
1,001,139
Fixed-income unlisted securities Related receivables Total
V.4.2
PRÊTS ET CRÉANCES SUR LA CLIENTÈLE
Notes
2008
2007
Healthy loans
Healthy loans
V.4 2.1
Collective depreciation Depreciation of securities Net
7,160,726
(30,706)
(1,170)
7,128,850
6,231,529
(30,272)
(59)
6,201,198
Doubtful loans
Doubtful loans
Individual depreciation Net(1)
360,736
(203,237)
157,499
345,285
(176,263)
169,022
7,286,349
6,370,220
Total
(2)
(1) The hedging rate for doubtful loans stood at 56% at 31 December 2008 compared to 51% at 31 December 2007.
(2) At 31 December 2007, the fair value of loans and receivables from clients, determined in accordance with the procedures presented
in note V.6.7, stood at 7,238,790,000 euros.
V.4.2.1
Healthy loans for clients
Notes
2008
2007
Financing leases V.4.2.2 908,437 878,544
Other loans and receivables V.4.2.3 5,756,887 4,802,163
Overdrafts on current accounts 423,842 483,579
Fixed-income unlisted securities 61 7 278
Financing against stock for repo securities received 31,157 29,850
Factoring 0
0
Other items 924 519
Related receivables 39,418 29,596
Total
7,160,726
6,231,529
V.4.2.2
Financing lease operations with clients
V.4.2.2.1
Financing lease loans
2008
2007
31 december
Property
Equipment
TOTAL
Property
Loans to clients
696,401
212,036
908,437
685,826
12,465
18,698
(6,233)
2,874
4,214
(1,340)
15,339
22,912
(7,573)
21,600
23,589
(1,989)
708,866
214,910
923,776
707,426
Net doubtful loans
Doubtful loans
Depreciation on doubtful loans
Total
Equipment
TOTAL
192,718 878,544
2,043
3,360
(1,317)
23,643
26,949
(3,306)
194,761 902,187
V.4.2.2.2 Residual maturity of financing lease contracts at 31/12/2007
2008
Residual maturity
Less than between 1
Over
Cannot be
1 year
and 5 years 5 years broken down
Financing leases
Gross investment
125,779
313,027
Updated value of minimum payments to be received
107,488
262,471
Financial income not acquired
-
-
Optional rent entered in the accounts
-
-
sStock of provisions for a failure
to collect minimum payments
-
-
Outright rental
Minimum payments to be received under the terms of dnon-terminable contracts
Optional rent entered in the accounts
201,673
0
157,781
0
- 107,157
-
TOTAL
640,479
527,740
107,157
-
2,090
2,090
0
2,647
584
854
1,209
-
-
-
107
V.4.2.3
Other loans and receivables from clients
Notes
2008
Commercial debts Export credits Liquidity and consumer credit facilities Equipment loans Home loans Other client loans Total
2007
315,125 337,779
5,208 6,046
541,114 446,005
4,219,965 3,504,368
609,161 450,012
66,314 57,953
5,756,887
4 802,163
V.5 Financial assets held until maturityIn thousands of euros 31 december
2008
2007
Government stock
Gross value
provisions
Related receivables
Net government stock
413,459
0
9,389
422,848
462,447
0
10,062
472,509
Bonds
Gross value
Depreciation
Net bonds
0
0
0
0
0
0
Autres
Gross value
Depreciation
Related receivables
200,279
0
3,442
201,880
0
3,433
Other net items
203,721
205,313
Total
626,569
677,822
The fair value of securities held until maturity, determined in accordance with the procedures presented in note V.6.7,
was 643,633,000 euros at 31 December 2008.
V.6 Other information relating to financial assetsV.6.1
Financial assets delivered on repo
This table itemises the book value of financial assets delivered as security for liabilities. These are securities delivered on repo and
stockdelivered (stock or securities) not on repo, which are maintained in assets in the balance sheet.
2008
2007
Equity instruments
Debt instruments
Loans and advancess
Other items
0
199,364
255,065
75,093
0
583,136
100,152
0
Total
529,522
683,288
V.6.2
Financial assets received as security and which can be transferred or re-delivered as security
Standard IFRS 7 classifies by nature assets received as
security and entered in assets in the balance sheet, within
the framework of financial guarantee contracts with a right
of reuse that can be exercised in the absence of the failure of
the holder of the security. The French regulatory
V.6.3
framework for these contracts is determined by order 2005171 of 24 February 2005. Repo operations are excluded
from this framework. To date, no assets received as security
within the aforementioned framework have been identified
within the Crédit Coopératif Group.
Financial assets transferred and not removed from the accounts
IFRS 7 requires information on assets transferred and not removed from the accounts, i.e. transfers that do not comply with
the conditions for removal from the accounts set out in §15 to 37 of standard IAS 39. To date, no financial assets transferred
and not removed from the accounts have been identified within the Crédit Coopératif Group.
V.6.4
Restructured financial assets
This table itemises restructured loans classified as healthy loans. Restructuring differs from commercial renegotiation because
of an initial counterparty risk.
2008
2007
Financial assets available for sale Financial assets held until maturity
0
317
0
0
0
9,355
0
0
Total
317
9,355
109
V.6.5
Outstanding financial assets not depreciated
Outstanding assets are those recording payment arrears but which have not been depreciated. The declared amount is the total
of the loan plus unpaid amounts. Positioning on maturities is carried out from the date of the first recorded non-payment for
the loan in question.
2008
Payment arrears
<= 90 days (1) > 90 days <= 180 days > 180 days <= 1 year > 1 year
TOTAL
Debt instruments
Loans and advances Other financial assets
Total
0
98,778
0
98,798
0
1,921
0
1,921
0
534
0
0
1,301
0
0
102,534
0
534
1,301
102,534
(1) the amount of outstanding assets for a period of less than 31 days stands at €76 million, i.e. 74% of the total.
V.6.6 Fair value of guarantee instruments covering outstanding or depreciated financial assets
The policy of accepting securities for contracts is implemented
upstream of their declaration as outstanding or doubtful
assets.
In effect, the choice of security is made when the loan decision
is taken.
This choice is closely linked to the quality of the client, the type
of loan granted and the estimate of changes in the risk relating
to the loan.
The Crédit Coopératif Group does not limit its choice in terms
of securities and offers itself all options, whilst complying
with legal constraints.
Securities received by Crédit Coopératif on contracts issued
can be grouped into large families:
- Financial (deposit, security deposit, delegation, collateral
security, etc.)
- Tangible (preferential right, mortgage, pledge, collateral
security, warrant, retention of title, etc.)
- Intangible (collateral security)
- Receivables (transfer, delegation)
- Guarantee (certificate, joint, not joint)
- by signature (downstream, first demand, guarantee fund,
bank acceptance, letter of intent, counter-guarantee)
Any security received and supporting a contract, is retained at
the registered office, and is entered in a central computer
system for securities.
For this purpose, procedures for entering and monitoring
securities have been revised. This central system enables an
automatic valuation to be carried out or an expert assessment
to be obtained of all the valid securities held, at regular
intervals. The creation of this central system has required
retrieval of all valid securities for all contracts. This retrieval is
not complete.
In addition, for the securities entered, valuation is not yet
exhaustive and checks are yet to be carried out to validate
processes. Within the framework of Basel II operations, these
two areas will be a priority within the Banque Populaire group
and should be completed by the end of 2008. With this in
mind, given the incompleteness of data for valuing securities
faced with sensitive or doubtful receivables, the Crédit
Coopératif group prefers to refrain from passing on this data.
V.6.7
Fair value of financial assets
2008
BookFair valueFair valueFair valueFair value in accordance with
value
determined
determined
internal valuation techniques
on the basis
on the basisFair valueVariation in the fair
of ratings
of a valuation value entered in the
31 december
technique income statement
Financial assets held for the purpose of trading
17,062
17,062
185
16,877
0
(912)
Financial assets designated at fair value by means of
income 9,622
9,622
4,683
4,939
4,940
(1,880)
41,744
41,744
0
41,744
14,331
(3,783)
1,841,584 1,841,641
706,750
1,134,891
377,234
-
1,200,183 1,212,890
0
1,212,890
1,212,890
-
7,286,349 7,328,790
0
7,328,790
7,328,790
-
Derivative hedging instruments (assets)
Revaluation reserve
for portfolios hedged
by interest rates
Assets held until maturity
Total
0
0
0
0
0
0
626,569
656,463
656,463
0
0
-
11,023,11311,108,212
1,368,081
9,740,131 8,938,185
(6,575)
Columns 3 and 4 of the table are a breakdown of column 2.
Column 4 comprises two types of valuation, those based on
observable market data and those based on internal models.
The fair value determined on the basis of ratings is the fair value
obtained on the valuation date, by direct reference to prices
published on an active market to which the entity has access.
Where the fair value is determined on the basis of a valuation
technique, there is a need to determine whether the valuation is
based on observable or non-observable data.
A certain number of products, in particular derivative products,
are valued on the basis of valuation models. Valuations obtained
may be equated with market prices where they are based on
observable parameters and recognised models and market
standards (i.e. for which the valuation techniques are widely
used) for the financial instrument in question. Where one of
these two conditions is not met, the valuation
obtained will be seen as Marked-to-Model and not as Markedto-Market.
In accordance with the standard, a parameter is defined as
observable if it is non proprietary: the data should come from an
easily accessible source outside the institution: it should be easy
to access the data, for example via the services of data or
contribution suppliers, it should be available regularly, be based
on a consensus and on market transactions (realised or by
means of ratings representing
a commitment by the counterparty to be processed).
Analysis of this observable character is based on each of these
sources individually or a combination of the latter.
The specific case of receivables and payables as regards clients
The fair value of loan portfolios and receivables and payables as
regards clients has been systematically entered in the column
entitled ‘Fair value determined in accordance with valuation
techniques not based on observable market data’ in the absence
of general external ratings for these portfolios. The fair value of
loans is determined on the basis of internal valuation models
consisting of updating future recoverable flows of capital and
interest over the remaining term at the production rate for the
month for loans in the same category and with the same
maturities.
The book value is deemed to represent the market value in the
following cases:
- variable-rate assets, where changes in interest have no
significant impact on the fair value, insofar as rates adjust
themselves frequently to market rates,
- short-term financial assets and liabilities (whose initial term
is less than or equal to one year), insofar as the sensitivity
to interest rate and credit risks is not significant over the
period,
- liabilities due on demand.
111
V.7 Deferred-tax assets and liabilitiesDeferred tax results from existing time differences in the
company accounts, or caused by consolidation adjustments,
between the book and tax values of balance sheet assets and
liabilities. It is calculated using the carry-forward method,
and therefore on the basis of future applicable tax rates.
2008
2007
Principal sources of deferred tax (1)
Unrealised finance-leasing reserve (14,727) Fair value of financial instruments whose variation is posted to reserves 29,774 Fair value of financial instruments – Other items 2,327 Provisions for corporate liabilities 784 Employee profit sharing 2,132 Organic 1,978 Regulated provisions for savings 904 Other non-deducted provisions 21,767 Provision for investment (5,788) Ordinary deficits and ARD 5,086 Amortised cost (12,485) Unrealised gains on UCITS 2,417 Other time differences 11,674 (14,132)
(111,231)
(5,828)
576
5,623
1,699
1,190
6,665
(4,617)
5,003
5,712
13,582
(5,756)
In thousands of euros at 31 december
The net balance for deferred tax, appearing in assets and
liabilities on the assets / liabilities line for deferred tax,
results from the following
principal differences:
Total for gross sources of deferred tax
Deferred tax assets not entered Total for net sources of deferred tax
Deferred tax entered in the accounts
Deferred tax at the ongoing rate
Deferred tax - Contributions and CSB
Deferred tax at a reduced rate
Total deferred tax entered in the accounts
of which - deferred tax debits
- deferred tax liabilities
45,843
(101,514)
(4,897)
(4,591)
40,946
(106,105)
9,266
271
(1,061)
2,952
97
(1,563)
(8,476)
1,486
15,761
(7,285)
8,701
(7,215)
(1) the sources of deferred tax generating deferred tax debits are marked with a plus sign, and those generating deferred tax
liabilities are marked with a minus sign.
(2) Including «collective depreciation» and «effect of updating individualised depreciation».
112
Annual Report 2008
V.8 Accruals, sundry assets and liabilitiesASSETS
2008
2007
V.8.1.1
V.8.2.1
50,231
234,860
63,909
371,977
Total
285,092
435,886
Notes
Other assets and miscellaneous employment of funds Accruals LIABILITIES
In thousands of euros at 31 decemberNotes
2008
2007
Other liabilities
Accruals V.8.1.2
V.8.2.2
194,111
231,789
180,822
273,687
Total
425,900
454,509
2008
2007
Settlements of transactions in securities Property development Other stocks and miscellaneous employments of funds Sundry debtors Related receivables 3,293 0
22 44,553 2,363 10,198
0
25
52,975
711
50,231
63,909
2008
2007
0
145,700 8,293 42,145 (2,027) 0
0
135,095
1,614
42,145
1,968
0
194,111
180,822
2008
2007
69,949 0
3,884 38,557 0
122,470 90,656
0
10,156
45,927
1
225,237
234,860
371,977
V.8.1
Other assets and sundry liabilities
V.8.1.1
Other assets and miscellaneous employment of funds
Total
V.8.1.2
Other liabilities
Liabilities on securities Sundry creditors Settlements of transactions in securities
Investment grant Other items Related accounts payable Total
V.8.2
Accruals
V.8.2.1
Asset accruals
Collection accounts Adjustment account Prepayments Deferred income Other deferred charges Other accruals Total
113
V.8.2.2
Liability accruals
2008
2007
95,111 129 29,066 57,178 50,305 81,988
0
28,213
49,418
114,068
231,789
273,687
Collection accounts Adjustment account Unearned income Accrued charges Other items Total
V.9 Investment properties2008
In thousands of euros 31 december Investment properties
- At a fair value - At a historic cost
Total
Gross
Amortisation Net Gross
value and depreciation
value value
2007
AmortisationNet
and depreciation
value
0
64,152
-
(38,593)
0
0
25,55974,120
–
(39,629)
0
34,491
64,152
(38,593)
25,55974,120
(39,629)
34,491
V.10 Capital assetsV.10.1 Tangible and intangible assets
2008
In thousands of euros 31 december Gross
Amortisation Net Gross
value and depreciation
value value
Tangible assets
136,126
Assets subject
to a financing lease 0
- Constructions 0
- Other items 0
Owned assets
136,126
- Shares in property
investment companies
0
- Land and constructions 92,539
- Other items
43,587
Intangible assets
60,114
Leasehold rights 10,555
Software
46,299
Other items
3,260 Assets intended for transfer
Tangible assets Other items
Total
114
2007
AmortisationNet
and depreciation
value
(76,785)
59,341119,921
(68,036)
51,885
0
0
0
(76,785)
0
0
0
0
0
0
59,341119,921
0
0
0
(68,036)
0
0
0
51,885
0
(50,127)
(26,658)
(48,847)
(8,293)
(40 549)
(5)
0
0
42,412 82,465
16,929 37,456
11,26754,295
2,262
10,165
5,750
43,013
3,255 1,117
0
(42,507)
(25,529)
(42,582)
(7,810)
(34,767)
(5)
0
39,958
11,927
11,713
2,355
8,246
1,112
0
0
0
0
0
0
(110,618)
63,598
0
0
0
0
0
0
196,240
(125,632)
0
0
0
0
0
0
70,608174,216
Annual Report 2008
V.10.2
Changes in assets during the financial year
Gross
Increase
Decreases Accounting ConversionOther(1)
value
and other
perimeter 31/12
transfers
changes
2007
Gross
value
31/12
2008
Tangible assets
119,921 19,477
(1,184)
316
(67) (2,337)
Assets subject to
0
0
0
0
0
0
a financing lease
Immobilisations 119,921
19,477
(1,184)
316
(67) (2,337)
Owned assets
investment companies 0
0
0
0
0
0
2,684
(318)
309
(66)
7,465
- Other items
37,456
16,793
(866)
7
(1) (9,802) Intangible assets
54,295
6,388
(463)
0
0
(106)
Leasehold rights
10,165
390
0
0
0
0
Software
43,013
2,882
(463)
0
0
867
Other items 1,117
3,116
0
0
0
(973)
136,126
0
Total
196,240
174,216
25,865
(1,647)
316
(67) (2,443)
Gross
Increase
Decreases Accounting ConversionOther(1)
value
and other
perimeter 31/12
transfers
changes
2006
136,126
0
92,539
43,587
60,114
10,555
46,299
3,260
Gross
value
31/12
2007
Tangible assets
111,243 10,294
(1,499)
0
0
(117)
Assets subject to
0
0
0
0
0
0
a financing lease
Immobilisations 111,243
10,294
(1,499)
0
0
(117)
Owned assets
investment companies 0
0
0
0
0
0
2,770
(3)
0
0
1,718
- Other items
33,263
7,524
(1,496)
0
0
(1,835)
Intangible assets
52,149
4,128
(10)
0
0 (1,972)
Leasehold rights
9,184
981
0
0
0
0
Software
39,483
2,275
(6)
0
0
1 261
Other items 3,482
872
(4)
0
0 (3,233)
119,921
0
Total
174,216
163,392
14,422
(1,509)
0
0 (2,089)
119,921
0
82,465
37,456
54,295
10,165
43,013
1,117
(1) the total appearing in the «other items» column corresponds specifically to the reclassification of certificates from depositors’
guarantee fund associations reclassified as other securities held long-term.
115
V.11 Assets obtained by taking possession of a guaranteeThe table itemises the assets obtained by accepting securities:
the nature and the book value of assets obtained and entered
in the accounts following the mobilisation of guarantees.
These assets are generally transferred. In order to establish
this information, the Crédit Coopératif Group has made
use of estimates, not having at its disposal an information
system enabling the assets obtained by taking possession of
a guarantee to be directly identified.
Non-marketable assets held with a view to selling Tangible assets Investment properties Equity and liability instruments Cash Other items Total
2008
2007
0
0
0
2,624 17,595 0
0
0
0
2,728
19,469
0
20,219
22,197
V.12 Goodwill on acquisition
at 31 december 20072008
Value at the
start of the
period
Acquisi-Transfers
tions over
over the
the period
period
Net values per unit
- Ecofi Investissements
3,546
0
0
- Intercop Location
0
217
0
- Tise
0
943
0
Total
at 31 december 3,546
1,160
(0)
20062007
Value at the
start of the
period
Acquisi-Transfers
tions over
over the
the period
period
Net values per unit
- Ecofi Investissements
3,546
0
0
- Bise
1,716
0
(1,716)
Total
116
5,262
0
(1,716)
Conversion
and other
operations
Value at the
the end of
period
0
0
(200)
3,546
217
743
(200)
4,506
Conversion
and other
operations
Value at the
the end of
period
0
0
3,546
0
0
3,546
Annual Report 2008
V.13 Payables to credit institutions and clientsVI.13.1
2008
2007
Current account balances Accounts and borrowings - sight
- term Securities sold on repo - sight
- term Securities delivered on repo - sight
- term Other liabilities Related accounts payable 22,330
1,131,364
0
1,131,364
0
0
0
27,710
0
27,710
700
8,832
80,624
655,961
0
655,961
100,000
0
100,000
27,710
0
27,710
1,258
9,854
Total
1,190,936
875,407
The fair value of payables to credit institutions, determined in accordance with the procedures presented in note V.17,
was 1,188,282,000 euros at 31 December 2008.
V.13.2
Payables to clients
2008
2007
Current account balances - sight
- term Accounts and borrowings - sight
- term Securities sold on repo - sight
- term Securities delivered on repo - sight
- term Specially-regulated savings accounts Factoring accounts Related accounts payable Other liabilities 3 987,770
3 229,596
758,174
20,000
0
20,000
0
0
0
200,321
0
200,321
1,058,489
0
13,254
90,709
3 789,113
3 059,253
729,860
634
0
634
0
0
0
544,326
0
544,326
910,964
0
13,519
89,179
Total
5,370,543
5,347,735
The fair value of payables to clients, determined in accordance with the procedures presented in note V.17, was 5,376,304,000
eurosat 31 December 2008.
117
V.14 Liabilities in the form of securities issued2008
2007
Interbank market securities Negotiable debt securities - BMTN
- CDN
Bond issues Other liabilities in the form of securities issued Related accounts payable 650
2,834,691
1,062,738
1,771,953
392,931
83,912
39,954
350
2,629,522
1,245,322
1,384,200
414,447
68,368
45,383
Total
3,352,138
3,158,070
The fair value of liabilities in the form of securities issued, determined in accordance with the procedures presented in note V.17,
was 3,379,045,000 euros at 31 December 2008.
V.15 Depreciation and provisions for liabilitiesV.15.1
Summary of depreciation and provisions for liabilities IncreaseUseUnused
Conver- Changes inOther
items
2007
reversals sion perimeter (1)
at 31 december Depreciation written against assets 210,436 118,468 (15,343) (32,084)
Healthy loans
30,272
6,930
0
(6,496)
Loans in default
176,436
110,950 (14,836)
(25,322)
Other depreciation
3,728
588
(507)
(266)
Provisions for liabilities
26,017 11,529 (5,630)
0
Counterparty risks
16,202
8,897
(4,000)
0
Depreciation risks
5,557
0
0
0
Social commitments
1,406
343
(149)
0
Operating risks
1,662
2,258
(1,164)
0
Regulated savings
1,190
31
(317)
0
Provisions for current tax 29
375
(6)
0
Total236,482 130,372 (20,979)
Effect on the income statement1)
0
(37)
(77,309)
(1) Effects of depreciation and provisions on the income statement.
118
(32,084)
(35)
0
(31)
(4)
(2)
(2)
0
0
0
0
2008
163 1,270 282,875
0
0 30,706
146
747 248,090
17
523
4,079
10 (4,822) 27,102
10
(348) 20,759
0 (4,650)
907
0
0
1,600
0
176
2,932
0
0
904
0
(6)
392
173 (3,558) 310,369
Annual Report 2008
Appropriations
ReversalsNet effect
Net banking income
(3,716)
1,930
(2,273)
1,182
Amortisation and depreciation on intangible and tangible assets (3)
0
Cost of risk
Gains or losses on other assets Income before tax
Corporate income tax
Net income
V.15.2
(5,992)
(124,005)
0
(129,997)
(375)
(130,372)
3,112
49,945
0
53,057
6
53,063
(1,786)
(1,091)
(3)
(2,880)
(74,060)
0
76,940
(369)
(77,309)
Increase
Use
Conversion Changes inOther
2007
perimeter items
In thousands of euros at 31 december Counterparty risks 16,202
8,897
(4,000)
- Capital and guarantee commitments
5,230
2,210
(1,427)
- Client disputes 10,972
6,687
(2,573)
- Other provisions
0
0
0
(2)
10
0
(2)
0
0
10
0
2008
(348) 20,759
2
(350)
0
6,015
14,744
0
907
0
0
907
Depreciation risks
- Financial assets
- Property development
- Other provisions
5,557
0
0
5,557
0
0
0
0
0
0
0
0
0
0
0
0
0 (4,650)
0
0
0
0
0 (4,650)
Social commitments
Operating risks
- Restructuring - Other provisions
1,406
1,662
0
1,662
343
2,258
0
2,258
(149)
(1,164)
0
(1,164)
0
0
0
0
0
0
0
0
0
176
0
176
1,600
2,932
0
2,932
Building-savings
- Building-savings plan - Building-savings account
0
1,190
1,190
0
31
31
0
(317)
(317)
0
0
0
0
0
0
0
0
0
0
904
904
Total 26,017
11,529
(5,630)
(2)
10 (4,822) 27,102
119
V.15.3
Building-saving provisions
2008
In thousands of eurosLess than Between 4Over at 31 december 4 years and 10 years 10 years Building-savings plans
(by generation)
- Funds collected 12,675
- Loans outstanding
26 - Total provision
6
- Appropriation / Reversal for
the financial year
(25)
2007
TotalLess than Between 4Over
4 years and 10 years 10 years
Total
30,464
637
667
83,928
842
902
(732)
(863)
Building-savings accounts
(by generation)
- Funds collected 12,361
- Loans outstanding
1,687
- Total provision
380
- Appropriation / Reversal for
the financial year
92
11,340
1,236
288
41,541
726
54
23,688
569
464
77,904
1 321
524
(150)
(203)
(378)
10,480 42,984
8
197
31
204
27
(158)
56
V.16 Subordinated debtV.16.1
Outstanding sums
Notes
2008
2007
Fixed term subordinated debts V.16.2 Non-fixed term subordinated debts V.16.2 Preference shares Mutual guarantees extended Related accounts payable 154 627 32 868 0
49 131 3 220 161 077
22 868
0
47 985
3 643
Total
239 846
235 573
The fair value of subordinated debts, determined in accordance with the procedures presented in note V.17, was 224,241,000
euros at 31 December 2008.
120
Annual Report 2008
V.16.2
Changes in other subordinated debt during the financial year
at 31 decembre
2007
Other fixed term
subordinated debts - Subordinated securities - Subordinated loans
Issue Redemption Conversion
Changes inOther
perimeter items (1)
2008
161,077
38
(15,021)
0
0
8,533
154,627
161,077
0
38
0
(15,021)
0
0
0
0
0
8,533
0
154,627
0
Other non-fixed term
22,868
subordinated debts - Subordinated securities 22,854
- Subordinated loans
14
10,000
0
0
0
0
32,868
0
10,000
0
0
0
0
0
0
14
(14)
22,868
10,000
Total
10,038
(15,021)
0
0
8,533
187,495
183,945
(1) O
ther movements on other subordinated debts correspond principally to variations in the elimination of reciprocal
operations, where the subordinated resources issued by the Group are subscribed by other consolidated entities and the
revaluation of subordinated debts covered by fair value hedging.
V.17 Fair value of financial liabilities2008
Book value
Fair value
Fair value
determined
on the basis
of ratings
at 31 decembre 2008
(1)
(2)
(3)
Financial liabilities held for the purpose of trading
Fair value Fair value in accordance with
determined internal valuation technique
on the basis Fair value Variation in the fair
of a valuationvalue entered in the
technique income statement
(4)
(5)
(6)
17,998
17,998
0
17,998
0
(139)
4,935
4,935
0
4,935
4,935
(1,834)
30,007
30,007
0
30,007
21,863
(56,684)
Financial liabilities at their amorti sed cost –
Payables to credit institutions 1,190,936
1,188,282
0
1,188,282
1,188,282
-
Financial liabilities
at their amortised
cost – Payables to clients 5,370,543
5,376,304
0
5,376,304
5,376,304
-
3 352,138
3,379,045
0
3,379,045
3,379,045
-
239,846
224,241
0
224,241
224,241
-
0
0
0
0
0
0
10,206,403
10,220,812
0
10,220,812 10,194,670
(58,807)
Financial liabilities designated at fair value
by means of income
Derivative hedging
instruments (liabilities)
Subordinated debt Revaluation reserve for portfolios hedged by
interest rates (liabilities)
Total
121
Columns 3 and 4 of the table are a breakdown of column 2.
Column 4 comprises two types of valuation, those based on
observable market data and those based on internal models.
The fair value determined on the basis of ratings is the fair
value obtained on the valuation date, by direct reference to
prices published on an active market to which the entity has
access.
Where the fair value is determined on the basis of a valuation
technique, there is a need to determine whether the valuation
is based on observable or non-observable data.
A certain number of products, in particular derivative products,
are valued on the basis of valuation models. Valuations
obtained may be equated with market prices where they are
based on observable parameters and recognised models and
market standards (i.e. for which the valuation techniques are
widely used) for the financial instrument in question. Where
one of these two conditions is not met, the valuation obtained
will be seen as Marked-to-Model and not as Marked-toMarket.
In accordance with the standard, a parameter is defined as
observable if it is non proprietary: the data should come from
an easily accessible source outside the institution: it should be
easy to access the data, for example via the services of data or
contribution suppliers, it should be available regularly, be based
on a consensus and on market transactions (realised or by
122
means of ratings representing a commitment by the
counterparty to be processed).
Analysis of this observable character is based on each of these
sources individually or a combination of the latter.
> The specific case of receivables and payables as
regards clients
The fair value of loan portfolios and receivables and payables
as regards clients has been systematically entered in the
column entitled ‘Fair value determined in accordance with
valuation techniques not based on observable market data’
in the absence of general external ratings for these portfolios.
The fair value of loans is determined on the basis of internal
valuation models consisting of updating future recoverable
flows of capital and interest over the remaining term at the
production rate for the month for loans in the same category
and with the same maturities.
The book value is deemed to represent the market value in
the following cases:
- variable-rate assets, where changes in interest have no
significant impact on the fair value, insofar as rates adjust
themselves frequently to market rates,
- short-term financial assets and liabilities (whose initial
term is less than or equal to one year), insofar as the
sensitivity to interest rate and credit risks is not significant
over the period,
- liabilities due on demand.
Annual Report 2008
V.18 Maturity of employments and resources by remaining termThe following table presents the maturities for all the Group’s employments and resources by contractual maturity
date.
2008
<= 1 month > 1 month > 3 months > 1 year > 2 years > 5 years
at 31 decembre 2008
<= 3 months <= 1 year <= 2 years <= 5 years Indefinite term
Total
EMPLOYMENTS
Cash and central banks
225,806
0
0
0
0
0
0
225,806
9,765
661
1,539
4,070
4,037
2,041
4,571
26,684
9
10
1,156
8,262
18,918
13,389
0
41,744
Financial assets
available for sale
136,591
216,069
640,293
217,455
56,630
35,350
539,195
1,841,584
Loans and receivables
from credit institutions
606,861
112,295
148,595
41,142
137,515
153,739
37
1,200,183
from clients
945,341
475,293
682,401
664,477 1,865,743
2,653,095
0
7,286,349
12,832
0
29,767
311,457
0
626,569
Financial assets at
fair value by income
Derivative hedging
instruments
Assets held
until maturity
Total employments
0
272,513
1,937,205 804,328 1,503,751 935,406 2,355,356 3,169,071
543,802 11,248,919
Resources
Central banks
Financial liabilities
at fair value by income
Derivative hedging
instruments
Payables to credit
institutions
Payables to clients Liabilities in the
form of securities issued
Subordinated debt
Total Resources
0
0
0
0
0
0
0
0
10,459
644
786
3,788
4,051
2,355
850
22,933
38
12
3,578
2,059
8,316
15,682
322
30,007
236,496
180,876
109,812
129,895
247,211
286,646
0
1,190,936
4,647,755
308,729
211,572
42,206
128,864
30,909
509
5,370,543
877,175
535,022
694,357
302,601
472,508
470,475
0
3,352,138
7,930
22,622
2,656
33,456
54,930
84,666
33,587
239,846
5,779,852 1,047,904 1,022,761 514,004
915,880 890,733
35,268 10,206,403
123
V.19 Breakdown of the balance sheet by currencyThe breakdown of the total asset/liability balance sheet by currency is as follows:
at 31 decembre 2008
2008
TotalEURUSD
GBP
JPY
CHFOthers
currencies
Assets
Liabilities
11,691,720
11,691,720
11,603,482
11,653,163
77,768
28,690
1,924
6,527
215
29
727
76
7,604
3 234
at 31 decembre 20072007
TotalEURUSD
GBP
JPY
CHFOther
currencies
Assets
Liabilities
124
11,306,773
11,306,773
11,225,712
11 259,042
54,641
29,867
4,931
9,665
850
585
530
67
20,109
7 547
Annual Report 2008
CONSOLIDATED NOTES
AND APPENDICES
Note VI – Notes relating
to the income statement
VI.1 Interest margininstitutions and clients.
They also record interest for derivative hedging instruments.
Financial assets and liabilities valued at their amortised cost
result in the entry in the accounts of interest calculated on
the basis of the effective interest rate (TIE).
The «interest and similar income and interest and similar
expenses» items record interest for fixed-income securities
entered in the accounts in the category of assets available
for sale and assets held until maturity, interest for loans/
borrowings and receivables/payables relating to credit
2008
2007
In
thousands of euros
at
31 decembre
Income ExpensesNet
Income ExpensesNet
Central bank, CCP 4,932
0
4,932
4,045
Interest on securities
148,970 (222,975)
(74,005)
139,192
(171,930) (32,738)
Loans and receivables - Relating to credit institutions
- Relating to clients
- Financing leases
444,648 (140,754)
58,025
(47,347)
347,920
(93,294) 38,703
(113)
303,893
10,678
254,625
38,590 378,233
36,511
296,604
45,118
(120,372) (45,837)
(74,501)
(34)
Subordinated debt Other items
Hedging instruments - Break in the hedging
relationship (CFH) - Interest accrued or
outstanding relating
(9,998)
4,045
257,861
(9,326)
222,103
45,084
(12,038) (12,038)
0
0
0
0
0
0
7,484
0
(7,605)
0
(121)
0
9,419
0
(10,409)
0
(990)
0
7,484
(7,605)
(121)
9,419
(10,409)
(990)
(983)
(102)
(102)
Interest relating to depreciated
receivables,including
restructured debts (983)
Total
(9,998) 0
605,051 (381,332)
223,719
530,787
(314,749) 216,038
125
VI.2 Net commissionThe method for entering commission received in relation to
services or financial instruments in the accounts depends
on the finality of the services rendered and the method
for entering financial instruments to which the service
relates in the accounts: commission remunerating an
immediate service is entered in income once the service
has been completed; that received within the framework
of a continuous service, such as bank card, guarantee or
management commission is spread pro rata temporis over
the duration of the service.
Commission forming an integral part of the actual return for
an instrument, such as financing commitment commission
or commission for granting loans, is entered in the accounts
and amortised in a similar way to an adjustment to the
actual return on the loan over the estimated life of the latter.
This commission therefore appears among interest income
and not in the item entitled “commission”.
The trust recovers asset-management commission on
behalf of third parties received by the subsidiary Ecofi
Investissements.
2008
2007
In
thousands of euros
at
31 decembre
Income ExpensesNet
Income ExpensesNet
104
(177)
(73)
129
(207)
(78)
Operations with clients 46,694
(662)
46,032
43,208
(999)
42,209
Securities transactions 1,627
(12)
1,615
1,895(1)
1,894
Transactions on payment
instruments 59,864
(44,190)
15,674
60,425
(42,672)
17,753
(3,143)4,808
2,570
(4,986)
(2,416)
Operations with credit institutions
Financial services provided
37,339
(2,824)
34,515
42,478
(4,086)
38,392
Commission on financing
commitments, guarantees,
securities and derivative instruments
861
(229)
632
810
(182)
628
Other items
309
(8)
301
316
(7)
309
Total154,748
(51,245)
103,503
151,831
(53,140)
98,691
Trust operations
126
7,951
Annual Report 2008
VI.3 Net gains or losses on financial instrumentswith a fair value by income-
This item records gains and losses on assets / liabilities
at a fair value by income, whether these are classified as
transactions or at a fair value by income, including interest
generated by these instruments.
Net gains on financial assets and liabilities excluding hedging derivatives
Net gains on financial assets and liabilities
held for the purpose of trading
- of which derivatives excluding hedging
Net gains on other financial assets
and liabilities at a fair value as an option
Other items
The hedging derivatives line comprises variations in the
fair value of derivatives, including interest, classified as fair
value hedging (FVH), as well as a symmetrical revaluation of
hedged items. It also records the «ineffective» proportion of
cash flow hedging (CFH).
2008
2007
908
3,754
5,415
2,900
6,270
(4,571)
3,006 785
64
69
Hedging derivatives and variation in the hedged item
Ineffectiveness of cash flow hedging (CFH)
Ineffectiveness of fair value hedging (FVH)
- Variation in fair value hedging
- Variation in the hedged item
1,907
21
1,886
3,272
(1 386)
(226) (70)
(156)
(13,839)
13,683
Total
2,815
3,528
VI.4 Net gains or losses on financial assets available for saleNet gains or losses on financial assets available for sale
essentially comprises the income generated by disposing of
securities and losses in value on variable-income securities
(long-term depreciation).
Variable-income securities classed as «assets available
for sale» form the subject of long-term and significant
depreciation where their book value is higher than their
recoverable value.
Losses in value for fixed-income securities are entered in the
accounts in cost of risk.
This item also records the dividends on variable-income
securities where the Group’s entitlement is established.
2008
2007
Dividends 11,229
Income generated by disposal Capital gain
Capital loss 14,382
11,204
17,435
15,572
(3,053)(4,368)
Losses in value of variable-income securities
Total
9,357
(295)
25,316
(32)
20,529
127
VI.5 Income and expenses from other activitiesIncome and expenses from other activities covers specifically ancillary income and expenses relating to financing leases and
income and expenses relating to investment properties.
Notes
at 31 decembre
2008
Income ExpensesNet
10,711
(616)
10,095
1
5,018
(2,826)
2,192
4,781
(2,773)
2,008
Investment properties
0
0
0
0
0
0
Non-operating fixed assets
0
(9)
(10)
0
(10)
(10)
(3,451) (12,278)
4,782
(5,761)
(979)
7,608
9,325
(1,451)
7,874
(4,549) 19,886
14,107
(7,212)
6,895
Financing lease operations
VI.5.1
Outright rental operations
Sub-total property operations
15,729
Other ancillary income and expenses VI.5.2
8,706
Total24,435
VI.5.1
Income generated by disposal
Other ancillary income and expenses
2008
Income ExpensesNet
2007
Income ExpensesNet
166
(470)
(304)
0
(591)
(591)
0
0
0
0
0
0
10,545
(146)
10,399
1
(2,387) (2,386)
(616) 10,095
1
(2,978) (2,977)
Depreciation
Total10,711
VI.5.2
(1,098)
(2,978) (2,977)
Financing lease operations
Other ancillary income and expenses
2008
2007
Property operations 1
(90)
IT services
0
0
Credit management services
0
0
7,607
7,964
(1)
Various other activities
Total
7,608
(1) the property operations item does not include income from fixed assets relating to operation.
128
2007
Income ExpensesNets
7,874
Annual Report 2008
VI.6 General operating expensesGeneral operating expenses essentially comprise staff costs, including salaries and net re-invoicing operations, welfare
contributions as well as staff benefits. This item also comprises all administrative expenses and external services.
2008
Staff costs
Salaries and emoluments
Pensions and other benefits
Welfare contributions
Incentives and shareholdings
Payroll taxes and levies
Other items
Total staff costs
Other operating expenses
Taxes and dues
External services (1)
Expenses relating to mergers
Other items (87,245)
(10,578)
(36,211)
(4,300)
(12,896)
(897)
(84,551)
(10,499)
(34,198)
(14,136)
(12,136)
(83)
(152 127)
(155 603)
(8,502)
(67,706)
0
(8,698)
(7,592)
(60,780)
0
(7,594)
(84,906)
(75,966)
Total other operating expenses
Total
2007
(237,033)
(231,569)
(1) Including Auditors’ fees (mandatory mention as from the 2008 financial year under the terms of application order
n°1487 of 30 December 2008)
2008
Legal control of the accounts
Consulting and associated services
699
64
Total
763
2007
705
57
762
VI.7 Cost of risk2008
Appro- NetLosses onRecoveries
priations reversals debts not of amortised
covered
debts
In
thousands of euros at 31 december 2008
Provisions for contingencies and losses
Capital commitment
Other items
Net
(8,899)
(2,219)
(6,680)
3,990
1,399 2,591
(4,909)
(820)
(4,089)
(114,325)
(114,325)
(107,395)
(6,930)
33,061 (2,729) 1,702
33,061
(2,729)
1,702
26,565
(2,729)
1,702
6,496
(82,291)
(82,291)
(81,857)
(434)
(179)
0
(179)
Other items(605)
0
(605)
(124,008) 37,051 (2,729) 1,702
(87,984)
Financial assets valued at their amortised cost
Individual depreciation of debts
Collective depreciation of healthy loans
Cost of risk
of which
• Reversal of depreciation that has ceased to be applicable
• Reversal of depreciation used
sub-total reversals:
• Losses covered by depreciation
Net total reversals:
37,051
12,883
49,934
(12,883)
37,051
129
2007
Appro- NetLosses onRecoveries
priations reversals debts not of amortised
covered
debts
Provisions for contingencies and losses
Capital commitment
Other items
Net
(2,529)
(1,217)
(1,312)
4,194
1,372 2,822
1,665
155
1,510
(59,304)
(59,304)
(41,465)
(17,839)
25,100 (1,904) 2,012
25 100
(1,904)
2,012
13,876
(1,904)
2,012
11,224
(34 096)
(34,096)
(27,481)
(6,615)
0
2 183
2,183
Other items(290)
1
(289)
(62,123) 31,478 (1,904) 2,012
(30,537)
Financial assets valued at their amortised cost
Individual depreciation of debts
Collective depreciation of healthy loans
Cost of risk
of which
• Reversal of depreciation that has ceased to be applicable
•Reversal of depreciation that has ceased to be applicables
sub-total reversals:
• Losses covered by depreciation
Net total reversals:
31,478
8,867
40,345
(8,867)
31,478
VI.8 Share of results from companies consolidated
according to the equity method2008
2007
Value
Result
Financial loan companies 18,268
361
17,635
2,801
Non-financial companies
11,544
1,174
11,300
2,353
Total
29,812
1,535
28,935
3,154
In thousands of euros at 31 december Value
Result
VI.9 Gains or losses on other assetsThis item comprises capital gains and losses on the sale of tangible and intangible operating assets as well as capital gains or
losses on the sale of consolidated securities included in the scope of consolidation.
2008
2007
On On tangible andTOTALOn On tangible andTOTAL
c onsolidated intangible assets
consolidated intangible assets
securities
securities
at 31 decembre
Net capital gains on disposals(1)
0
1,392
1,392
47,523
225
47,748
Net capital losses on disposals
0
(1,149)
(1,149)
0
(87)
(87)
Total
0
243
243
47,523
138 47,661
(1) The net capital gains on disposals of securities consolidated at 31 December 2007 correspond to the capital gain generated as
a result of selling Crédit Coopératif’s shareholding in the Polish bank Banque d’Initiatives Socio-Economiques (Bise SA).
130
Annual Report 2008
VI.10 Variation in the value of goodwillThis item records depreciation on positive goodwill. Depreciation is recorded where there are indications of a loss in value.
2008
Positive goodwill (net depreciation)
Posting negative goodwill
0
0
Total
0
2007
0
0
0
VI.11 Corporate income taxVI.11.1
Calculating the tax burden
The tax burden for the financial year comprises:
- The tax due from various French companies at a rate of
34.43%, and at the locally applicable rate for foreign
companies and branches,
- The deferred tax resulting from existing time differences in
the company accounts, or caused by specific consolidation
adjustments, between the book and tax values of balance
sheet assets and liabilities, calculated using the variable
VI.11.2
carry-forward method.
Netting of deferred tax assets and liabilities is carried out
within the same fiscal entity. A fiscal entity corresponds
either to an entity itself, or to a fiscal integration group,
where one exists. The Group does not record any deferred
net tax assets which could not effectively be used in
the future to reduce the overall tax burden.
Reconciliation between the total tax burden entered in the accounts and the theoreticalburden
+ Net income - Attributable to the Group
+ Net income - Attributable to minority shareholders + Tax for the financial year +/- Other permanent differences + Posting tax deficits - Tax exempt sector (Sicomi, a venture capital company) - Result for companies consolidated according
to the equity method 2008
2007
22 193
4 542 8 009 (33) (3 942) (3 051) 87 840
4 595
26 684
(33 523)
(180)
(4 660)
(1 535) (3 154) = Consolidated tax result
26 183
77 602
* Theoretical tax rate
33,33 %
33,33 %
= Theoretical tax
8 727
25 865
+ Tax credits + Effects of fiscal integration + Contribution and CSB + Tax at a reduced rate + Tax adjustments + Variation in deferred tax assets, limited in order to be prudent + Final tax on long-term capital gain reserves
+ Other items (509) 0
315 6
(1245) 786 (462)
0
729
441
0
891
(71) (780)
= Tax burden for the financial year
8 009
26 684
5 678
2 331
28 106
(1 422)
of which • tax due
• deferred tax
VI.12 Income per shareIncome per share is 0.80 euros in 2008, compared with 3.11 euros in 2007. It is a proportion expressed using the net income attributable
to the group as the numerator and the number of members’ shares and investment certificates at the period end as the denominator.
131
CONSOLIDATED NOTES
AND APPENDICES
Note VII – Notes relating
to capital
VII.1 POSITION AT 31 DECEMBER 2008Crédit Coopératif is a company with variable capital. Its
capital is divided into members’ shares and cooperative
preference shares, with a nominal value of 15.25 euros each.
The status of the capital is recognised as members’ shares in
cooperatives insofar as the entity has a discretionary right to
refuse the redemption of shares, the sale of members’ shares
being subject to the approval of the Board of Directors of
Crédit Coopératif. As a result, this last characteristic confirms
their status as share capital as regards IFRS standards.
At 31 December 2008, the share capital of Crédit Coopératif
amounted to 493,718,765.25 euros. It is divided into:
- 2,743,596 A shares, with a value of 41,839,839 euros, i.e.
8.47% of the capital
- 14,932,704 B shares, with a value of 227,723,736 euros, i.e.
- 8,223,700 C shares, with a value of 125,411,425 euros, i.e.
- 6,475,001 cooperative preference shares, with a value of
98,743,765.25 euros, i.e. 20.00% of the capital
The number of members holding A and B shares was 29,814 at
31 December 2008. The number of holders of C shares, nonvoting preferred interest shares, was 11,925 at 31 December
2008. The cooperative preference shares, non-voting
securities, are held exclusively by Natixis. They represent, in a
constant manner, 20% of Crédit Coopératif’s share capital.
In order to maintain a constant figure of 20%, the SAS
Sociétariat Crédit Coopératif Banque Populaire, a subsidiary of
Inter-Coop, itself a subsidiary of Crédit Coopératif, was created
with a view to regulating Crédit Coopératif’s share capital
through the subscription and redemption of members’ shares.
Therefore, at 31 December 2008, the SAS Sociétariat Crédit
Coopératif Banque Populaire held 1 A share and 4,478,724 B
shares at a value of 68,300,541 euros, i.e. 13.83% of Crédit
Coopératif’s capital.
There are no members other than the SAS Sociétariat Crédit
Coopératif Banque Populaire holding more than 5% of the
capital.
The 29,814 members of Crédit Coopératif each have a vote at
the General Meeting, in accordance with the cooperative
132
principle of one person one vote (with the exclusion of the
SAS Sociétariat Crédit Coopératif Banque Populaire, whose
voting rights are neutralised, pursuant to article L 233-31 of
the [French] Commercial Code). At 31 December 2008, the
number of votes was therefore 29,813, representing
201,263,034 euros, i.e. 40.76% of the capital.
VII.1.1 Changes in capital (excluding SAS
Sociétariat Crédit Coopératif Banque
Populaire)
Amount (in € M)
500
400
300
200
100
0
87
53
83
99
99
99
108
124
125
171
165
159
68
154
114
54
51
50
50
44
42
2003
2004
2005
2006
2007
2008
Parts A
Parts B
Parts C
CCI
VII.1.2 DISTRIBUTION OF CAPITAL AND VOTING RIGHTS
> Conditions for changes in the capital
The maximum amount of share capital within which the actual
amount of Crédit Coopératif’s capital may freely be increased, and
the terms and procedures for increasing it, are laid down, in the
Board of Directors report and following authorisation from the
Banque Fédérale des Banques Populaires, by the Extraordinary
General Meeting of shareholders.
The actual capital is increased by the entry of new members
approved by the Board of Directors of Crédit Coopératif or by the
subscription of new members’ shares of the same or of differing
categories, by members with the approval of the Board of Directors.
The capital may also be increased by the issue of cooperative nonvoting preference shares and non-voting preferred interest-bearing
Annual Report 2008
shares. On aggregate, these certificates and shares may not
represent more than half the capital.
> The respective rights of cooperative member shares
Crédit Coopératif’s capital is divided into three categories of
members’ shares:
- «A shares» can only be subscribed by legal entities, sole
traders or directors. They confer the status of member.
- «B shares can only be subscribed by holders of A shares.
They give their holders a special benefit, consisting of an
interest payment as resolved by the General Meeting even
when no interest is paid on A shares.
- «C shares» are non-voting preferred interest-bearing
shares. These shares can only be subscribed by individuals.
Holders of C shares benefit from a preferred entitlement to
an interest payment of 0.50%. Where this remuneration is
not paid in full for three consecutive financial years, the
holders of C shares acquire a right to vote, within the limits
set out in article 11 b of the law of 10th September 1947.
Where the distributable profit after posting the minimum
remuneration set for C shares allows this, the General Meeting may
decide to pay interest on B shares and additional interest on C
shares, without the remuneration for a B share being higher than
the total remuneration for a C share, and without the interest rate
exceeding the maximum stipulated in the legislation relating to
cooperation.
The Crédit Coopératif Board of Directors meeting on 17 June 2005,
set a subscription ceiling for members’ shares subscribed outside
the framework of financial support: This ceiling was fixed at:
20,000 B shares for legal entities, i.e. €305,000
5,000 C shares for individuals, i.e. €76,250.
> The respective rights of cooperative preference shares
The cooperative preference shares are non-voting securities.
They have a remuneration entitlement set by the Annual
General Meeting in accordance with the results for the
financial year. This remuneration is at least equal to that
paid for members’ shares. The holders of cooperative
preference shares attend a special meeting to approve or
reject any decision modifying their rights.
maximum period of 26 months, i.e. by 14 January 2009, to a
capital increase of up to €1,974,870, reserved for salaried staff
of Crédit Coopératif within the framework of a Company
savings plan and carried out in accordance with the provisions
set out in article L. 443-5 of the French Labour Code.
In the light of the specific characteristics of the Crédit
Coopératif shares, the Crédit Coopératif Board of Directors
took note on 11 December 2008, of the impossibility of
carrying out this operation.
VII.3. REGULATORY RATIOS As regards liquidity, the Group is structurally in surplus. The
liquidity ratio exceeds the requirement imposed on each of
the institutions (100%). At the end of 2008, the liquidity ratio
of Crédit Coopératif was 154%, and 210% for BTP Banque.
For the purpose of controlling major risks, the regulations set
the following limits:
- 25% of equity capital for the risks borne in respect of a given
beneficiary,
- 8 times the amount of equity capital for the total
commitments which, per beneficiary, exceed 10% of equity
capital.
The Crédit Coopératif Group has developed a wide spread of
risk, ensuring that no weighted unit commitment for the same
beneficiary exceeds 10% of its equity capital.
VII.1.3 EMPLOYEES SHARES OF THE CAPITAL
At 31 December 2008:
- 233 Group employees directly held 105,568 members’
shares, i.e. 1,609,912 euros,
- Employees also indirectly held 2 «A» and 2,563 «B» members’
shares within the framework of a Fonds Commun de
Placement (French mutual investment fund), i.e. 39,101 euros,
Employees therefore held, directly and indirectly, a total of
108,132 members’ shares, with a global value of 1,649,013
euros, i.e. 0.33% of Crédit Coopératif’s capital.
VII.2 DELEGATIONS OF POWERAS REGARDS CAPITAL INCREASESIn application of the provisions set out in article L. 225-129-6
of the French Code of commerce, the persons at the Crédit
Coopératif Extraordinary General Meeting on 15 November
2006 authorised the Board of Directors to proceed within a
133
CONSOLIDATED NOTES
AND APPENDICES
Note VIII – Risk exposure
and risk management
C
rédit Coopératif Group’s risk management is based on
an organisation that complies with legislation and
regulations, including specifically modified Regulation
97-02 of the Comité de la Réglementation Bancaire
[French banking regulation committee]. It has resulted in an
internal control system which forms part of the practices and
procedures for risk evaluation within the Banque Populaire
Group, embodied in a charter approved by the Audit Committee.
This system ensures, in compliance with the guidelines laid down
by the Board of Directors, the coverage of risks, their exhaustive
evaluation and their management.
It is organised in such a way as to guarantee the strict
independence of risk control functions as regards operational
lines and by distinguishing three levels of monitoring:
- Permanent control carried out at level one in the business
activities, within the normal framework of their responsibility, and
at level two by dedicated local and central teams organised
according to type of risk – credit, financial, operational of
conformity.
- Periodical control is carried out at level three by an Audit team
that executes missions throughout the business activities in
accordance with a long-term programme.
All these processes are detailed in the report from the
Chairman of the Board of Directors on Crédit Coopératif’s
internal-control procedures.
The degree of controlling and evaluating risks is reported at
regular intervals to different dedicated committees. The main
committees involved are: Audit, Risk, Coordination of Control
Functions, Financial and ALM, Operational Risk and Security of
people, property and IT systems).
In the course of the year, Crédit Coopératif continued to make
major investments concerning its risk control systems, and in
particular concerning credit risk, to ensure good management of
the Basel 2 regulatory environment that came into effect in 2008.
Furthermore, an accounting control function was set up; it is
separate from the Accounts Department.
VIII.1 CREDIT RISKSVIII.1.1 A quality portfolio
The group’s commitments, excluding disputes, are classified
according to a synthetic indicator of the quality of the financing
134
risk, taking into account the client’s financial situation, his
environment and securities accepted.
A satisfactory structuring of risk is confirmed, with very high risk
cases only representing 2% of outstanding loans and good risks
equating to 75% of outstanding loans.
Qualitative breakdown of the loan portfolio
at 31 december 2008 (internal ratings)
19 %
0%
Very good
quality
Pre-disputed
2%
High risk
23 %
Ordinary
risk
56 %
Good quality
Specific follow-up guarantees very precise monitoring of the
concentration of risk by client sector.
VIII.1.2 A widely diversified portfolio
Loan portfolio breakdown per sector
at 31 december 2008
1%
15 %
Misc.
Associations
Distribution
3%
21 %
Local
authorities,
unions, mutual
societies
Companies
6%
16 %
Inter-bank
Health and
social
associations
2%
Teaching and
training
associations
20 %
Building and civil
engineering
5%
Social housing
2%
Shipping, food
and agriculture
7%
Private
individuals
2%
Leisure and
entertainment
associations
Credit breakdown
per type of clientele
VIII.1.4 Risk management system
at 31 december 2008 (including financial commitments)
22 %
Retail (professionals
and associations)
72 %
Corporate
concerns and
associations
6%
Retail
(private
individuals)
VIII.1.3 Quality of the credit risk of financial
assets (excluding outstanding assets
and depreciated assets)
All the credit balances outstanding benefit from a Basel II
rating, using scales differentiated according to the following
types of clientele:
- The «Corporate» clientele is subdivided into «major clients»
and «Very large Businesses» (Turnover of more than 1
billion euros,)
- The «Retail» clients («Professionals» and private individuals).To
homogenise the «all clienteles» summaries, these ratings have
been spread over the following homogeneous risk categories.
Category I comprises the best ratings and category V the
most high-risk ratings.
Basel II rating system
Risk
Corporate
Corporate
categories
Very large
Major clients
Businesses
I
II
III
IV
V
AAA à AA-
1, 2, 3
A+ à A-
4, 5, 6
BBB+ à BB-
7, 8, 9, 10
B+ à B-
11, 12, 13, 14
Inférieur
15,16
ou égal à CCC+
Professionals
and private individuals
(Retail)
1, 2
3, 4
5, 6
7, 8
9,10
Asset breakdown per class of risk
at 31 december 2008 (Basel II ratings)
V-2%
IV - 15 %
I - 29 %
III - 27 %
II - 27 %
A system guarantees close monitoring of credit risk: the
branches have information tools at their disposal, which
allow them to perform a daily check of compliance with
authorisations. This scheme is supplemented by secondlevel controls performed on each loan dossier individually
by Group Credit Risk Management by means of its own
specific alarm criteria. At least once a month, all positions
that have overrun their limits are reviewed by means of
exchanges of information with each of the branches. These
controls are in turn supplemented by missions performed
by the Group’s Internal Audit department acting on behalf
of General Management. Critical dossiers are monitored
by a difficult-business committee meeting each week,
which decides on the guidelines to be followed in
agreement with the Commitments Department, Group
Credit Risk Management and technical units. A specialised
Credit Risk Reporting committee assesses the risk
management quality.
VIII.1.5 Risk management policy
and objectives
Improvement work on the tools dedicated to Basel II
processing, carried out jointly with the Banque Fédérale des
Banques Populaires, continued in 2008. These developments,
together with permanent clientele data monitoring, have
enabled Crédit Coopératif to considerably enhance the levels
of reliability for Basel II information, which is now integrated
in all its procedures covering delegations, risk management
and pricing of MLT accommodation. Most of the clients have
already received a rating from the tools, which incorporate
this approach to risks. This environment strengthens the
management of credit risks and provides Crédit Coopératif
with more extensive information databases allowing it to
analyse its activity in more precise detail.
VIII.1.6 Risk approval procedures
Every loan decision is taken on the basis of the same
principles, regardless of the Crédit Coopératif group
institution involved.
• Every commitment requires prior authorisation,
• Authorisations are granted by the head office or by the
branches with the appropriate delegations of power, which
depend on the type and amount of support applied for,
• Credit applications are processed on the basis of a
structured application framework tailored to each type of
client,
• The Commitments Department analyses the facility
applications within its remit. It acts completely
independently of the sales/marketing business lines,
• Authorisations lapse after not more than twelve months,
and the situations are reviewed accordingly at least once a
year,
• Joint analysis and the right of veto for Group Credit Risk
Management are exercised for facility applications within
the remit of the Commitments Committee for Crédit
Coopératif and specific criteria tailored to each subsidiary
or associated institution.
135
VIII.1.7 Continuous control of credit risks
Continuous control is based:
- On the one hand, on the Basel II rating system for clients,
based on objective, financial and economic information.
The ratings of major «Corporate» clients are reviewed by their
manager at least once a year. For the other «Retail» clients,
the rating is reviewed each month.
- And on other hand, on a synthetic indicator of the quality
of the credit risk for a client, taking into account his
financial situation, the type of facilities, guarantees and his
environment, allowing changes in the quality of the client’s
business to be monitored. This indicator is a major
instrument in guiding credit policy.
The General Management is kept informed by means of a
detailed report of:
- The overall trend in the quality of loans outstanding,
- The quality of the largest loans outstanding,
- The detailed situation of clients with the highest amount of
loans outstanding.
VIII.1.8 Monitoring credit risks: changes in
comparison to the previous period
Changes in comparison to the financial year 2007 are principally
linked to the Basel II agreement:
- The Basel II rating system is integrated into the pricing
procedure for MLT loans
- For «Corporate» clients shared with other banks in the Banque
Populaire Group, an information sharing system concerning
Basel II ratings and defaults has been set up via the joint rating
tool used by the Banque Fédérale des Banques Populaires. For
these shared clients, the bank bearing the highest amounts
outstanding is designated as the main bank: It is that bank
that assigns the final rating to the client.
- At the end of 2008, a risk committee dedicated to credit risks
was set up, in accordance with the modalities set out in the
Banque Populaire charter.
VIII.1.9 Changes in the cost of risk
87
154
99
99
99
108
124
125
171
165
159
50
50
44
42
2005
2006
2007
2008
Parts C
CCI
DoubtfulProvisions
loans
Pre-disputed loans
178,838
Live loans with provisions 97,620
Total
Cover
levels
119,203 66.7 %
36,323 37.2 %
276,458 155,526 56.3 %
VIII.2 MARKET RISKSMarket risks are risks that arise as a result of developments
on financial markets (level of rates, currency exchange rates,
prices on stock markets, etc.) which are unfavourable for the
resulting establishment of:
- A future reduction in income or an increase in expenses
(the amount of interest in particular),
- A reduction in the value of assets or an increase in that of
liabilities, in particular for financial income entered in the
balance sheet at its fair value.
The Crédit Coopératif Group’s market risks relate principally
to Crédit Coopératif S.A. For the above company, the market risks relate essentially to:
- Financial instruments within the trading portfolio, where
changes in valuations affect the income statement (these
are principally derivatives),
- Securities and UCITS shares in which surplus cash is placed
(the majority of these securities being classified as available
for sale, changes in their valuation modify the amount of
equity capital),
- Finally, cash flow hedging derivatives and imperfections in
fair value hedging, concluded in order to guarantee:
• Marginal foreign-exchange risk hedging,
• Global interest-rate risk hedging (macro coverage),
• Micro-coverage of this same interest-rate risk.
2008 was marked by changes in the cost of risk that were mainly
linked to provisions calculated on amounts outstanding
concerning businesses that are still active. The 2008 cost of risk
thus expresses changes in the general economic situation and the
prudential credit risk management policy that is essential in times
of instability.
NB: pursuant to standard IFRS 7, market risks include the
interest-rate risk seen in a very general manner, including the
global interest-rate risk, which is nevertheless examined
outside this section and which relates to market risks with a
stricter and yet more classic acceptance.
Short term + Medium and long term
VIII.2.1 CREDIT COOPERATIF
TRADING PORTFOLIO
(in € thousands)
35,000
1.5%
32,846
30,000
1%
25,000
0.62%
15,000
10,000
0.5%
0.39%
20,000
0.29%
17,937
0%
11,806
-0.5%
5,000
0
136
2008 cover levels for doubtful receivables via
provisions:
31/12/2006
31/12/2007
30/12/2008
-1%
According to IFRS standards the trading portfolio comprises
securities classified in the market to market portfolio in line
with French standards and derivative instruments which are
not classified as hedging instruments; because of this, it is
larger than the trading portfolio was before switching to
IFRS standards.
Crédit Coopératif’s trading portfolio is nevertheless
deliberately limited and its position, calculated each day,
remains significantly below the thresholds stipulated by
regulation 95-02 relating to prudential monitoring of market
risks, which are 20 million euros for the maximum position
and 15 million euros for the average position; the Crédit
Coopératif Group is therefore not subject to this regulation.
Therefore, at 31 December 2008, this position, calculated in
a prudent manner, is less than 2 million euros despite the
fact that a certain number of derivative instruments are
classified in the trading portfolio in accordance with IFRS
standards, while they do not correspond to open positions.
Crédit Coopératif’s position vis-à-vis the
threshold for application of regulation 95-02
concerning prudential monitoring of market
risks
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
Jan Feb Mar April May Jun Juil Aug Sept Oct Nov Dec Jan Feb Mar April May Jun Juil Aug Sept Oct Nov Dec
07 07 07 07 07 07 07 07 07 07 07 07 08 08 08 08 08 08 08 08 08 08 08 08
All variations in the value of financial instruments within the
portfolio have an effect on the income statement. Its
sensitivity to the various risk factors can be assessed on the
basis of the following elements:
- The sensitivity of the trading portfolio valuation with a
uniform change in interest rates of 100 basis points is
approximately €0.3 million,
- The risk value of a few shares held directly (a €70,000
position) is, at 10 days and with a confidence interval of
99%, €20,000,
- Risk hedging for UCITS shares is equivalent, at 31/12/2008,
to a negative share exposure of minus €5 million of equity
risk; the valuation of stock index contracts concluded may
therefore change fairly significantly; nevertheless, it should
be noted that as the majority of hedged UCITS were
covered when they were acquired or at the time of the
switch to IFRS standards the UCITS have hence been
classified at a fair value for options, even though they are
not part of the trading portfolio, so that changes in their
valuation offset, albeit partially in some cases, the effect of
hedged derivatives on the income statement.
VIII.2.2 LIQUIDITY AND OWN-ACCOUNT
MANAGEMENT
The market risks taken by Crédit Coopératif lie mainly within
the framework of its own-account management (investment
of surplus cash assets considered as stables) and in its shortterm cash flow management.
> Counterparty risk
The counterparty risk, which is basically a counterparty
default risk (the credit risk for financial products) also
constitutes a price risk through variations in the credit
spread; it mainly concerns three fields of activity.
Each of the counterparties in question has formed the
subject of a request for authorisation examined and passed
by the financial committee within the framework of
application of the rules in force and the amounts thus
authorised form the subject of periodic reviews that can lead
to their reduction or withdrawal depending on the economic
or financial environment and, in some cases, changes in the
ratings assigned to the counterparties concerned.
1) The own-account short-term securities portfolio
This is a portfolio of own-account private counterparty
bonds, the vast majority of which are interbank bonds,
classified in the investment portfolio in French accounting,
and whose holding period at the time of purchase, early in
2008, stood at less than three years, and even less than two
years for 80% of the portfolio, The purpose of this portfolio
is to invest surplus cash amounts considered as stable.
As the financial crisis has considerably increased the
counterparty default risk, concerning inter-bank
counterparties, in 2008 Crédit Coopératif took a certain
number of steps aimed at capping the risk to which it is
exposed concerning the portfolio; the effects of these steps
will be felt progressively:
- Reduction of the overall portfolio total through temporary
suspension of renewals, to bring the total amount below
the €500 M level, the new limit set; thus at the end of
2008, the total amount in the portfolio had been reduced
to 830 M as against €1,150 M at the end of 2007,
- Limiting the amounts of commitments involving a given
counterparty to €10 M at most, whereas at the moment 30
counterparties still concerning amounts of over €10 M,
with a maximum of €45 M,
- Halving the maximum (residual) maturity of new securities
purchased: 1 year for 80% of the portfolio and the rest at
not more than 18 months; the average portfolio maturity,
which currently stands at 300 days, should thus fall to
something like 180 days,
- Drawing up stricter rules for selecting counterparties.
137
2) Securitisation
This portfolio is made up of €35 million of diversified mutual
credit fund shares, which do not correspond to particularly
high risk credits:
44% of the best-protected senior tranches and 56% of
mezzanine tranches with less than €1 M in American home
loans.
3) Cash management
Interbank loans are made or short-term securities acquired
within the framework of short-term liquidity management,
although the overall amount is still relatively high (1.3 billion
euros at the end of 2008, excluding the deposits at Banque
de France):
- More than half of these amounts concern establishments
in the Crédit Coopératif or Banque Populaire groups.
- The short maturity of these securities (just 3 months on
average at the end of 2008) considerably limits the
resulting credit risk borne by Crédit Coopératif.
4) Balance sheet management
€590 million of French and Belgian government securities,
or securities providing similar counterparty guarantees
(CADES and BEI bonds) with long maturity have been
acquired within the framework of managing the global
interest-rate risk. They are classified as being «held until
maturity» under the IFRS standards and the counterparty
risk entailed can be considered as very low.
Breakdown per country
at 31 december 2007
Other European
Countries
Other
European
1.21%
Union countries
Breakdown per type of counterparty
1.79%
5%
Other Countries
0.21%
France
68.38%
Spain
4.56%
Italy
5.05%
Germany
4.64%
Benelux
9.16%
Breakdown by country
at 31 december 2008
Other European
Union countries
3.01%
Spain
4.90%
Italy
5) Tables and graphs showing the breakdowns of the
amounts outstanding using various criteria
North America
Other European
countries
1.34%
North America
1.04%
Other countries
0.55%
France
77.45%
4.20%
Germany
2.45%
Benelux
5.05%
At 31 December 2008, 50% of the counterparty risk was
concentrated in sovereign securities or counterparties within
the Banque Populaire group.
100
0,85%
1,12%
10.82%
6.03%
80
40.29%
51.68%
60
8
26.91%
40
17.50%
20
0
19.19%
25.65%
2007
2008
Securitization
Companies
138
Banking
Intra-group
Sovereign
At 31 December 2008, 97% of the counterparty risk was
concentrated in issuers that are members of the European
Union; furthermore, the defaults that occurred in 2008
concern counterparties outside the European Union, which
provides incentive to refrain from further investment
diversification of this type outside the Union.
Breakdown per rating assignment
VIII.2.3 interest-rate risk
not including establishments in the Banque Populaire
Group
The overall rate risk for the balance sheet as a whole is
monitored by the ALM unit. The rate risk concerning ownaccount management more specifically, and which forms
part of the overall rate risk, resides mainly in the following:
- The proportion of the interest-rate risk contained in the
portfolio of UCITS shares, which would not form the
subject of interest-rate hedging,
- In the residual interest-rate risk, represented by securities
in the bond portfolio not hedged by interest rates (a fairly
low proportion equivalent to €45 million for a fixed-rate
security with a maturity of one year, this portfolio being in
effect 93.4% hedged against the interest-rate risk),
- In the interest-rate risk taken or accepted within the
framework of liquidity management.
It is covered by specific limits (mainly concerning sensitivity)
at several levels: one corresponds to all own-account
management, another to the short-term activity for which
the treasurer is responsible, and a third to spot purchases or
sales of futures contracts on the Bund.
Rating
2007
2008
AAA
AA+
AA
AA-
A+
A
A-
BBB+
BBB
BBB-
BB+
BB-
Non noté
Défaut
TOTAL
20.69%
6.96%
5.09%
9.45%
16.94%
10.22%
11.89%
5.70%
1.49%
2.13%
0.00%
0.71%
8.74%
0.00%
Cumulative Cumulative
2007
2008
32.16% 20.69% 32.16%
5.12% 27.65% 37.28%
3.53% 32.74% 40.81%
12.01% 42.19% 52.82%
24.32% 59.13% 77.14%
3.61% 69.35% 80.75%
4.98% 81.24% 85.73%
5.74% 86.93% 91.47%
2.80% 88.42% 94.27%
0.40% 90.55% 94.67%
0.05% 90.55% 94.72%
0.42% 91.26% 95.14%
2.60% 100.00% 97.74%
2.26% 100.00% 100.00%
100.00% 100.00%
At 31 December 2008, 94.67% of the counterparty risk was
concentrated in Investment Grade securities (rating of BBBor higher) as against 90.55% at the end of 2007.
The changes between 2007 and 2008 are due to the
following:
- Renewal of mature lines in the form of positions on issuers
whose ratings were at least and good as those for the
mature positions. Thus 24% of the commitments involving
companies were renewed at average ratings of BBB+. 60%
of the commitments involving financial establishments
were renewed at an average rating of A+, higher than the
average rating for the mature lines, which stood at A-.
- In the course of 2008, 15% of the position commitments
saw a fall in ratings: Not including defaults, 88% fell by
one level and 12% dropped by two levels.
2008 breakdown by rating class
excluding commitments to the Banque Populaire Group
BB
[BB+/BB/BB-]
0.47%
BBB
[BBB+/BBB/BBB-]
8.94%
A
[A+/A/A-]
32.91%
Default
2.26%
Unrated
2.60%
AAA
32.16%
VIII.2.4 Share risk
Concerning the situation at the end of December, this risk
results mainly from the share component of UCITS shares,
which amounted to €5 M at the end of December 2008.
This amount is fully hedged by sales of futures contracts on
index markets, but the hedging is not fully efficient because
the individual behaviour of the making up the UCITS portfolio
is not 100% correlated with that of the hedging index (there
is a residual risk known as a ‘specific’ risk).
Crédit Coopératif also holds a few shares directly, with a
value of €0.70 million, and Bonds Redeemable in Shares for
approximately €0.25 million, which also contain a small
proportion of share risk.
There is a limit to the overall share risk authorised within the
framework of own-account management, completed by
sub-limits allocated to certain particular responsibilities or
management supports, together with maximum loss limits
for certain types of operations. These limits are set by the
financial committee and reviewed systematically once a
year; they can also be modified in the course of the year The
main limits were thus halved during 2008, taking into
account the situation of the financial markets. Moreover, the
financial department can directly set itself lower limits, on a
temporary basis, provided that it informs the financial
committee of the fact; limits of this type were in force at the
end of 2008, and this further reduces exposure to risks.
AA
[AA+/AA/AA-]
20.66%
139
VIII.2.5 Foreign-exchange risk
This risk stems mainly from the following three sources:
- A position in other currencies that results from ownaccount management and is governed by a limit as to the
overall amount of the euro exchange value; throughout
2008, the overall amount remained well below that limit (it
fell almost to zero for the last few months),
- The activity in other currencies resulting from clientele
operations, which represents a foreign exchange position
whose overall amount ranges between 0.5 and 1.5 M in
terms of euro exchange value.
- A holding in TISE, in zlotys, whose total amount corresponds
to a euro exchange value of 1.5 M; and VISA securities in
USD corresponding to 0.8 M euros
The other operations, including operations carried out with
the clientele and refinancing in other currencies, in some
cases, are almost
always hedged.
VIII.2.6 Other sources of risk
> Structured products
Crédit Coopératif does not hold any structured products on
its own account.
Structured products issued or sold to the clientele are
systematically hedged on the markets.
> Mutual fund investments
At the end of 2008, out of a total of €176 M invested in UCITS,
€161 M concern a monetary UCITS managed by the Group’s
management) company.
Among the other UCITS shares held, some concern what are
known as alternative or quantitative UCITS whose evaluation
theoretically changes in a way that is not correlated to that of
the markets. The corresponding amounts are covered by a
specific limit, and at the end of 2008 they stood at only €1.8 M
as against €10 M at the end of 2007.
> Capital or performance guarantees
Crédit Coopératif provided capital or performance
guarantees for some ECOFI Investissement UCITS, concerning
a total amount of €650 M at the end of 2008; of course, the
management company does not rely on that guarantee
alone, and it applies a prudent management policy to provide
the clients with the guaranteed performance levels, wherever
possible, without calling on Crédit Coopératif’s guarantee.
The performance levels of some of the UCITS is exposed to
the risk of falls in share market values or rises in interest
rates. Furthermore, the drop in overnight rates makes it
more difficult to provide, without risk, at least the
performance levels guaranteed to clients, when the fund
composition is changed to reduce exposure to market risks.
There is thus a clear risk that these guarantees could be
called on and in 2008, in a particularly difficult market
context, the capital guarantee covering one of the funds
guaranteed and maturing, was indeed brought into play,
constituting an expense item of four thousand euros.
On the basis of stress scenarios and prudent management
rules, the risk to which Crédit Coopératif could be exposed in
140
coming years for the €650 M in live guaranteed UCITS is
estimated weekly; these estimations lead us to consider that
the resulting expense is unlikely to exceed €200,000.
NB: The choice of counterparties for the directly held
products making up the funds guaranteed has to be validated
by the financial committee in the same way as own-account
investments; however, the use of funds of funds means that
some funds may involve a risk concerning non-validated
counterparties; a detailed, transparent study of the UCITS
contents carried out at the end of 2008 showed that only
5% of the fund amounts guaranteed do in fact correspond
to such non-validated counterparties.
VIII.2.7 SUMMARY OF THE SENSITIVITY OF RESULTS
AND EQUITY CAPITAL TO DIFFERENT
MARKET RISK FACTORS
This summary is limited to Crédit Coopératif S.A and,
excludes possible changes in the valuations of shareholdings
Interest rate risk
Effect on evaluation of the instruments concerned by
an evaluation under IFRS standards, but without the
rate risk contained in UCITS investments.
Methodology
Effect of a uniform 1% rate rise, i.e. 100 base points (in
thousands of euros).
2007
2008
Income
Equity
Income
capitals
Equity
capital
- 8,464
- 9,361
2,689
2,152
The reduced favourable impact on the income statement of
a rise in interest rates stems from the 15% reduction in the
liabilities outstanding covered by fair value hedging (they
are mainly the amounts of coupons calculated on the basis
of a predetermined Euribor, which remain exposed to rate
change risks).
The reduced unfavourable impact of a rise in interest rates at
the level of equity capital is due to the hedging strategy for
liquidity management employments: The hedged amounts
fell by 40% and the unhedged amounts remaining at a fixed
rate was increased by 200% to make the most of a period of
high interest rates in 2008, which came to an end just before
the end of the year.
Price variation risk:
Currency exchange risk
counterparty risk for a portfolio of securities classified
as being available for sale (mainly a bond portfolio)
Methodology
Impact of an increase in credit spreads identical to that noted
between year N-1 and year N, in thousands of euros.)
2007
2008
Income
Equity
Income
capitals
Equity
capitals
-3,510
- 14,014
0
0
The major changes between 2007 and 2008 stem from the
accelerating rise in spreads in the course of 2008: Thus in
2007, a bank with an A rating saw its spread increase by 21
base points for a one-year receivable, and the spread
increased by a further 110 base points in 2008, which is quite
exceptional; this means that the scenario presented is clearly
a crisis scenario..
Price variation risk
(excluding the counterparty risk for a bond portfolio)
Methodology
99% risk value over a 10-business-day horizon
(in thousands of euros).
2007
Income
478
490
290
2007
Income
2008
Equity
Income
capitals
17
0
Equity
capitals
286
The risk value perimeter consists of UCITS shares and other
directly owned shares within the framework of own-asset
management. The fall in the risk value between 2007 and
2008 is due to changes in the portfolio breakdown:
- The impact on income fell due to the 75% reduction in
UCITS funds hedged by futures contracts (the hedging is
not fully efficient because the hedging only covers the
general risk, and not the specific risk),
- The fall in the impact on equity capital is due to the 6%
reduction in other UCITS funds, and the lower proportion
of those funds corresponding to quantitative or alternative
UCITS, which were reduced from 8% at the end of 2007 to
just 1% at the end of 2008.
Equity
capitals
180
0
The currency exchange position in terms of euro exchange
value rose from €1.6 M at the end of 2007 to €2.4 M at the
end of 2008 with exposure concerning the USD in particular,
whose volatility increased considerably in 2008, thus leading
to a sharp rise in the risk value (whose amount, may we
point out as a reminder, is expressed positively, as are all risk
value amounts, but translates into a risk of reduced income
or reduced equity capital in the event of unfavourable
changes in the risk factors).
Risk aggregation
To provide a consolidated view of the various market risks, a
Risk Value is shown, which concerns the overall exposure to
the various market risks for the situation at 31/12/2008.
99% ten-day Income
risk value in € thousands
2008
Equity
Income
capitals
Methodology
99% risk value over a 10-business-day horizon
(in thousands of euros).
Equity
capitals
Total
Foreign-exchange risk
180
0
180
Price variation risk: Shares
290
286
298
Interest-rate risk
629
3 103
2 592
Counterparty risk
0
3 919
3 919
Compensation due to correlations
GLOBAL risk
- 420
678
- 2 441 - 2 411
4 867
4 578
Risk Value method consists of calculating the maximum
potential loss at 10 business days with a 99% confidence
level). Although this method is best suited to the perimeter
of a trading portfolio with daily monitoring of exposure to
risks arising from speculative positions that can usually be
cut off quickly, it is nonetheless a method that has the merit
of constituting a standard.
The calculation parameters (volatility and correlations) are
estimated on the basis of a 252-day stock market history.
The main hypotheses used for the method applied are that
the statistical behaviour of market values taken as risk
factors follows a Normal Law and that there is a linear
relation between the risk factors and the value of the
portfolio.
141
NB: The normality hypothesis that is used to enable global
calculation is criticisable above all for the counterparty
risk, as it leads us to reduce that value by about €1.3 M
as a partial risk, as compared with the results obtained by
application of a historical risk value method that does not
presuppose compliance with that statistical hypothesis
(€3.9 M as against €5.2 M).
Black Monday 1987
25% fall in stock market values €690,000
Interest rate rise in October 1999
Interest rate rise ranging from 0.55% on 3 months to 0.11% on 10 years.
€567,000
Changes in currency exchange rates Fall in exchange rates of up to 11% in the first half of December 2008
(for the USD rate) as against the euro.
€245,000
for the ownaccount
management
perimeter
Increase in credit spreads of the size seen from 26/09/2008 to 10/10/2008
Exceptional level of distrust in the banking system;
as an example, for 1-year maturity:
AAA : +6 base points
AA +18 points
A + 129 points
BBB or unrated: + 158 points
VIII.3 GLOBAL BALANCESHEET MANAGEMENT RISKS-
VIII.3.1 SHEET MANAGEMENT RISKS
Crédit Coopératif is facing an interest-rate and liquidity risk
in connection with its activity of collecting resources and
granting loans to clients.
The global interest-rate risk is measured quarterly within the
framework of the Banques Populaires group repository and
since the cut-off at the end of September, using the new
group software (whose current conditions of use do not yet
enable us to obtain the balance sheet analyses as quickly
after the cut-off date as beforehand.)
> Measuring the effect of changes in rates on the
forecast interest margin
The interest margin over the next four years is calculated for a
certain number of rate change scenarios.
For two of these (a uniform decrease or increase in all rates of
100 basis points) group limits are fixed in order to limit the
impact on the interest rate margin for the next two years; in
2008, the limits were set at 7% for the first year and 10.5% for
the following year (the difference being calculated in relation to
the results obtained in accordance with the scenario considered
the most probable, according to ‘economists’), and the limits will
be set at 6% and 9% respectively.
At the end of September 2008, Crédit Coopératif did not seem
to be too sensitive to a uniform change in rates: an effect of less
than 2.5% on the interest-rate margin for each of the next two
years; the most damaging scenario for it would be that of a rise
142
Crisis scenarios For each of the risks identified (Exchange rate, Share, Interest
rate and Credit), Crédit Coopératif has drawn up crisis
scenarios enabling it to complete the Risk Value approach,
doing its utmost to base its forecasts on scenarios that have
actually occurred. Thus in the light of studies of the past
financial crises, four historical type scenarios were adopted
at the end of 2008; they are set out in the table below, with
indications of the corresponding risk value.
€9.8 M
for the perimeter
dof securities classified as
(AFS (no securities rated
in the trading portfolio).
in short rates taking place at the same time as a rise in long
rates: for an opposite change in rates of 50 basis points, the
margin would fall by just 1.7% over the first year only and then
by 4.7% over the following year (it should be noted that this
relative fall of 4.7% would appear in reality only as a less
pronounced change than that anticipated according to
budgetary theories with the rates scenario applied being the
most probable one).
> Calculating fixed-rate shortfalls [impasses]
These impasses are calculated as from the third year on the basis of
the difference between the forecast outstanding levels of the stock
of fixed-rate resources and those of the stock of fixed-rate uses.
Variable-rate products are considered as being fixed until the next
rate setting date.
All the employments and sources in the balance sheet and offbalance-sheet statement are scheduled either according to their
contractual provisions, as is the case for loans, or according to a
conventional schedule for sight deposits, each level of stock
evolution is depreciated using the straight-line method, over a
period that can vary between 5 and 20 years according to the
category of clientele.
With shortfalls of less than 3% of the initial assets On the last
monitoring date based on the year-end of 31 December 2008,
Crédit Coopératif easily complies with the Group limits set for these
shortfalls at 10% for the first seven years (5.9% for the maximum
impasse actually noted), and then at 7% for subsequent years (less
than 2% for the year with the biggest actual impasse).
VIII.3.2 Liquidity risk
Crédit Coopératif is structurally a lender on the interbank
market, but it also collects long-term resources as part of its
activity and according to its requirements.
Liquidity risk is measured within the framework of the
Banque Populaire Group’s risk benchmark document in the
following manner:
- On the one hand, using a classic calculation of shortfalls
(stock resources minus stock employments); for Crédit
Coopératif, as regards the situation at the end of September
2008, which shows a lack of resources over the next 5
years that varies between 5% and 9% of the initial assets,
i.e. well below the limit set at 25%, whereas the following
years only displayed surpluses of resources),
- But also in accordance with two crisis scenarios:
•A
short-term signature crisis scenario over a month
during which the funds collected fall very sharply:
* By 5% for sight deposits and passbooks,
* By 2% for building-savings plans
* With collection of new CDNs reduced by 50%
whereas the receivables outstanding increase by
2%.
Crédit Coopératif complies easily with the Group limit set
at 0% for the impasses noted at the end of the first month
of a crisis, thanks to its possibility of calling more than a
billion euros of receivables if necessary; this would enable it
to retain excess resources amounting to 10% of its assets.
NB: This scenario has been toned down as compared with
the previous version (on the basis of what actually occurred
for a banking establishment), but on the other hand, the
limit for impasses has been reduced to 0% instead of 13% of
the total assets as was previously authorised.
• A second systemic crisis scenario concerning a longer
period of 3 months, giving the establishment time to
reduce its loans somewhat; this further scenario is
currently being tested without any limit being imposed by
the risk repository as yet, but Crédit Coopératif is easily
able to meet the objective, which is once again to avoid a
shortfall in resources.
NB: In 2008, Crédit Coopératif tried out the new technical
possibilities for mobilising receivables proposed to banking
establishments, as a precaution, because it does not need to
use them to maintain sufficient cash reserves.
VIII.3.3 Global foreign-exchange risk
At the end of December 2008, the global foreign exchange
position for Crédit Coopératif, converted into euros, is €2.4
million. Crédit Coopératif applies an almost systematic
hedging policy for foreign exchange risk stemming from its
commercial activities with its clientele and such refinancing
as may be expressed in other currencies; nonetheless, of
course, it maintains a limited buffer supply of other
currencies held by its correspondents in other countries to
enable it to accompany its clients’ activities.
VIII.4 OPERATING RISKSAccording to the official texts, operating risks include the risks
of loss arising from an unsuitability or a failure attributable to
internal procedures, persons or systems, or to external events.
When calculating its equity capital requirements, the Banque
Populaire Group currently applies the Basel 2 standard method.
Within the framework of Basel 2 prudential regulations, since
2005 Crédit Coopératif has progressively set up an operating
risk management system.
Operating risks are inherent in all the establishment’s activities.
Their measurement and control come under the direct
responsibility of each business activity, which deals with
declarations of any losses and incidents, identification and
evaluation of risks and their hedging. This management is
monitored by each business hierarchy, is of course integrated in
the permanent control programmes. It is carried out by a
dedicated team, within the Continuous Control Department. It
relies on the Operating departments and their Permanent
Control correspondents, as close as possible to the business
units and the process knowledge.
The system is then supervised by the General Management, via
the Operating Risks, Conformity, and Security Committee. The
Inspection Department of the Banque Fédérale des Banques
Populaires carried out a review of the system in 2008.
The measurement and supervision system is based on a
repository common to the Banque Populaire Group. In 2008,
the Banque Fédérale des Banques Populaires modified it prior to
deployment of ORIX, a management tool for operational risk
mapping.
In 2008, Crédit Coopératif thus integrated the new methodology
that can be used to map each potential generic risk and link
losses to those risks. It also took part, as the pilot bank, in
preparatory workshops to integrate the tool under the
leadership of the Banque Fédérale des Banques Populaires.
Delivery of ORIX to Crédit Coopératif, programmed in 2008, will
be carried out early in 2009 in a partial version, including the
mapping and incident functionalities. After an acceptance
phase, the tool will be deployed among risk managers in the
light of its functional coverage. The work to review the mapping
and monitor execution of the action plans will be carried out at
the same rhythm.
In parallel to the work linked to the tool, the loss databases,
extended to cover all the establishments in the Crédit Coopératif
Group, are still being set up; the Operating Risk Committee met
under the following modalities: The business activities presented
their risk control systems and the operating risk team went over
the consolidations carried out concerning collection of losses
and the steps taken such as feedback concerning the main
operating problems.
Moreover, the mapping work continued among the
establishments associated with Crédit Coopératif, in accordance
with the initial procedure applied to Crédit Coopératif in 2006.
Besides implementation of ORIX, the Banque Populaire
Group management tool, and application of the resulting
methodological changes, 2009 will be given over to
continued deployment of the operating risk steering system,
in particular with enrichment of the list of occurrences
143
completed by a list of the problems noted, monitoring of the
permanent controls via the work carried out by the
permanent control correspondents, and by setting up
indicators to enable supervision of the most sensitive
processes. As regards the Continuity of Activity Plan, it was
possible in 2008 to continue the work that was initiated in
2004, within the «phoenix» methodological framework
supplied by the Federal Bank.
In particular, this year saw implementation of the Banque
Populaire Group charter concerning the de PCA exercises
policy, whose contents officialised principles already
implemented by Crédit Coopératif for several years to ensure
the coherence and efficacy of its PCA. In conformity with the
charter, various exercises that meet the two fixed basic
scenarios, i.e. “long-term unavailability of the premises at
the head office” and “long-term unavailability of the
information system”, were carried out successfully this year.
In particular, a large-scale exercise covering 70% of our
essential critical activities and involving more than 60 of our
staff members on the backup site or two days, enabled
validation of the elements in the plan implemented. The
exercise also provided and opportunity to test for the first
time the continuity plan for the mail service drawn up with
various outside service providers.
Nonetheless, the largest project in 2008 remained that of
migrating the main IT production site under the control of
the Head of the Continuity of Activities Plan. The main
purpose of the migration, which comes within the framework
of managing of major risks, was to separate the scenarios of
joint unavailability of the premises and the information
system in the event of an occurrence involving the
headquarters in Nanterre. Its success showed once again the
efficacy of the IT backup plan: IT production was carried out
under very good conditions on the backup site for two
weeks, thus enabling the equipment transfer operations to
be carried out in full safety.
2009, for its part, will be given over to industrialisation of
the process to keep the CAP in Operating Condition. A
dedicated BP group software tool will be implemented to
facilitate updating of the plans and a new series of exercises
will be carried out to assess their efficiency.
VIII.5 NON-COMPLIANCE RISKSA team has been set up to monitor the non-compliance risks. It
is a component of the Continuous Control Department. In this
respect, it carries out both prevention and control activities, in
full independence from the commercial, financial and
production lines of business activities. It combines two
regulatory functions:
- The Head of Compliance, who is responsible for compliance
with obligations towards the Banking Commission;
- The Head of Compliance for Investment Services, who is
responsible for compliance with obligations towards the AMF.
These actions concern control of the non-compliance risk,
defined as «the risk of legal, administrative or disciplinary
penalties, considerable
144
financial loss or damage to the reputation, resulting from failure
to comply with measures pertaining to banking and financial
activities, whether legislative or regulatory in nature, or
pertaining to professional or ethical standards, or instructions
from the management body taken, in particular, according to
the directions set by the decision-making body.» It helps to
ensure that the internal standards (rules of procedure, code of
ethics) are kept operational.
The perimeter of intervention of the Compliance team covers all
the legislative and regulatory provisions governing banking and
financial activities, the Information technology and personal
rights, and the actions to prevent money laundering, financing
terrorism and fraud, together with the policies determined by
the General Management.
Its preventive actions translate mainly into regulatory watch,
implementation of a procedure to validate new products,
drawing up and monitoring a policy to handle conflicts of
interest, and deployment of a staff training and awareness
enhancement plan. Furthermore, a professional ethics warning
procedure enabling centralisation of shortcomings found in
application of the laws, regulations, professional standards and
ethical codes, was kept in operating condition. No warnings
were forwarded in 2007. No warnings were forwarded in 2008.
The supervision actions translate into permanent controls.
These controls can be delegated to controllers intervening at the
levels closest to the business activities lines. In this case, the
Conformity team monitors implementation and execution of
the controls. The team also carries out direct controls.
For 2008, the Conformity team continued to take part in the
project to apply the «Financial Instruments Markets» Directive,
to refine and adjust the systems used to comply with
professional obligations. Furthermore, the systems implemented
in 2007 were kept in operational condition (regulatory watch,
«new products»).
As part of the efforts to prevent money laundering, a unit within
the Compliance team continued to adapt the supervision
system to comply with the regulatory context and clientele risk
typologies.
To anticipate transposition of the third directive concerning
efforts to prevent money laundering and financing of terrorism,
the technical project begun in 2007, to equip Crédit Coopératif
with a new tool to detect and deal with atypical operations, was
continued.
CONSOLIDATED NOTES
AND APPENDICES
Note IX – Commitments
IX.1 Guarantee commitmentsThe non-financial guarantee commitments given (or received) correspond to contracts integrating an obligation to give
(or a right to receive) non-financial assets in the event of debtor default. A financial guarantee is a contract that requires the
issuer to indemnify the business guaranteed for any losses actually suffered due to failure on the part of a debtor to pay
contractual amounts due. Exercising these rights is subject to the occurrence of an uncertain future event.
The IFRS benchmark document distinguishes between three types of financial guarantee contracts:
- Guarantees granted (received) on the outflow (inflow) of financial assets / liabilities,
- Financial guarantees complying with the definition of an insurance contract and forming the subject of adequate technical
provisions,
- Financial guarantees similar to derivatives.
The nominal value of these guarantee commitments is as follows:
2008
2007
Guarantee commitments given
To credit establishments
- confirmation of opening documentary credits
- Other guarantees To the clientele
- Property guarantees
- Administrative and tax guarantees
- Other deposits and guarantees given
- Other guarantees
Totalguarantee commitments given
guarantee commitments received
from credit establishments
14,097
22
14,075
2,800,850
97,086
429,779
510,760
1,763,225
9,411
364
9,047
2,736,740
100,033
406,768
479,729
1,750,210
2,814,947
2,746,151
615,441
536,323
IX.2 Capital commitmentsPursuant to standard IAS 39, capital commitments excluded from the scope of IAS 39 are entered in the accounts in accordance
with standard IAS 37 “provisions, possible assets and liabilities”.
A capital commitment given is a possible liability, defined in IAS 37 as a potential obligation resulting from past events and
whose existence will only be confirmed by the occurrence (or not) of one or more uncertain future events which are not entirely
under the control of the company or a current obligation resulting from past events but which is not entered in the accounts
because:
- It is not likely that an outflow of resources representing economic benefits will be needed to meet the obligation, or
- The extent of the obligation cannot be valued with a sufficient degree of reliability.
145
The nominal value of these capital commitments as governed by standard IAS 37 amounts to:
2008
2007
Financing commitments given
To credit establishments
to the clientele
- Opening documentary credits
- Other confirmed credit openings
- Other commitments
Totalfinancing commitments given
financing commitments received
from credit establishments
146
4,574
761,435
19,988
720,035
21,412
3,994
675,646
17,689
631,907
26,050
766,009
679,640
1,310,722
138,735
CONSOLIDATED NOTES
AND APPENDICES
Note X – Workforce and benefits
granted to personnel
X.1 WorkforceAverage numbers of serving staff employed during the period under review came to 1,968.
X.2 Summary of provisions for social commitmentsIn thousands of euros
at 31 december 2008
Provisions entered in the accounts at 31/12/2007 Retirement benefits
Long service
awards
Total
511 895
1,406
Actuarial differences not recorded (754) 0
(754)
Change of pension scheme to be carried forward 2,184 0 2184
Total commitment at 01/01/2007
1,941
895
2,836
Pension rights realised during the period (732) (179) (911)
Pension rights acquired during the period 514 176 690
Financial expenses 454 107 561
(143) 0
(143)
Variation in management expenses 0
0
0
Payments made into the fund over the year 0
0
0
Costs on payments 0
0
0
71 0
71
(17) 23 6
46 (141) -95
Recorded variation in staff costs
193
(14)
179
Actuarial differences relating to commitments (219) 0
(219)
135 0
135
0
0
0
(84)
0
(84)
Expected gross return on assets Pension scheme change recorded in the accounts for the period Actuarial differences recorded for the period Other items Actuarial difference relating to the return on assets Other actuarial differences Variation in actuarial differences not recorded
(1,296)
0
(1,296)
Other items
Pension scheme change occurring during the period
(35)
0
(35)
Provisions entered in the accounts
719
881
1,600
Actuarial differences not recorded
(821)
0
(821)
Change of pension scheme to be carried forward
1,120
0
1,120
1,018
881
1,899
147
at 31 december 2007
Provisions entered in the accounts at 31/12/2006 Retirement benefits
Total
478 684 1,162
40 0
40
Change of pension scheme to be carried forward 1,095 0
1,095
1,613
684
2,297
Pension rights realised during the period (676) (137) (813)
Pension rights acquired during the period 498 132 630
Financial expenses 378 77 455
(384) 0
(384)
Variation in management expenses 0
0
0
Payments made into the fund over the year 0
0
0
Costs on payments 0
0
0
84 0
84
0
(84) (84)
134 439 573
33
427
460
Actuarial differences not recorded Expected gross return on assets
Pension scheme change recorded in the accounts for the period Actuarial differences recorded for the period Other items Recorded variation in staff costs
Actuarial differences relating to commitments (796) 0
(796)
Actuarial difference relating to the return on assets 2
0
2
Other actuarial differences 0
0
0
Variation in actuarial differences not recorded
(794)
0
(794)
1,173
0
1,173
(216)
(216)
Provisions entered in the accounts
511
895
1 ,406
Actuarial differences not recorded
(754)
0
(754)
Change of pension scheme to be carried forward
2,184
0
2,184
1,941
895
2,836
Other items
148
Long-service
awards
CONSOLIDATED NOTES
AND APPENDICES
Note XI – Sectoral
information
Standard IAS 14 requires the presentation of sectoral information based on a breakdown of the company by sector of activity
and by geographic sector, each of these being subject to risks and levels of profitability that differ from those in other sectors.
The Crédit Coopératif Group being principally based on the national network, sectoral information is not presented by geographic
sector.
On a sectoral level, the Crédit Coopératif Group is structured in three sectors:
- The local banks
- Asset management on behalf of third parties, this sector is represented by the subsidiary Ecofi-Investissements.
- Capital investment, which covers the activities of the subsidiary BTP Capital Investissement, the Esfin company consolidated
according to the equity method, and Tise.
Sectoral information relates to financial aggregates taken from the balance sheet and the income statement and reconciled with
financial statements.
XI.1 Sectoral analysis of the balance sheetLocal bank Asset management on Capital Total
behalf of third parties
investment
ASSETS - In thousands of euros
31/12/08 31/12/07 31/12/08 31/12/07 31/12/08 31/12/07
31/12/08 31/12/07
Financial assets at a fair value 26,684
35,206
0
0
0
0
26,684
by Income
35,206
Financial assets available 1,798,616 2,234,395
13,711
21,049
29,257
44,855
1,841,584
for sale 2,300,299
Loans and receivables from credit
institutions
1,199,704
1,001,091
35
48
444
0
1,200,183
1,001,139
7,286,342
6 370,220
0
0
7
0
7,286,349
6,370,220
Financial assets held until maturity 626,569
677,822
0
0
0
0
626,569
677,822
217
0
3,546
3,546
743
0
4,506
3,546
695,063
894,783
10,460
6,074
322
17,684
705,845
918,541
11,633,195 11,213,517
27,752
30,717
30,773
Goodwill on acquisition
Other assets TOTAL ASSETS 62,539 11,691,720 11,306,773
149
Local bank
Asset management on Capital Group
investment
Total
LIABILITIES - In thousands of euros
31/12/08
31/12/07 31/12/08 31/12/07 31/12/08 31/12/07
31/12/08 31/12/07
Financial liabilities at a fair value
by income
22,933
11,563
0
0
0
0
22,933
11,563
1,190,936
875,234
0
0
0
173
1,190,936
875,407
Payables to clients
5,370,543
5,347,735
0
0
0
0
5,370,543
5,347,735
Liabilities in the form
of securities issued
Subordinated debt
3,352,138
239,846
3,158,070
235 ,573
0
0
0
0
0
0
0
0
3,352,138
239,846
3,158,070
235,573
Other liabilities 1,456,799
1,523,770
27,752
30,717
30,773
62,366
1,515,324
1,678,425
11,633,195 11,213,517
27,752
30,717
30,773
62,539 11,691,720 11,306,773
TOTAL LIABILITIES XI.2 Sectoral analysis of the income statementLocal bank
31/12/08 31/12/07
Asset management on Capital Group
investment
Total
31/12/08 31/12/07 31/12/08 31/12/07 31/12/08 31/12/07
Net banking income
General and similar expenses
24,984
(19,122)
5,862
29,051
(18,531)
10,520
3,043
(685)
2,358
6,985 375,239 345,681
(952) (254,289) (246,840)
6,033 120,950
98,841
5,857
10,468
2,263
6,831
347,212 309,645
(234,482) (227,357)
112,730
82,288
Net operating income before tax 26,624
150
101,820
34,744 119,119
CONSOLIDATED NOTES
AND APPENDICES
Note XII – Affiliated parties
XII.1 Remuneration of the company’s executive officersRemuneration, directors’ fees and pension commitments awarded at 31.12.2008 to members of Senior Management
and Executive bodies are as follows:
Remuneration and
Directors’ at 31 december 2008
commitments
fees
Senior Management body
616
117
Executive body
887
0
Advances and loans granted
Body
Representative
3,154
0
144
0
XII.2 Transactions with other affiliated partiesTransactions with fully consolidated companies are eliminated in consolidation, transactions with other non-consolidated
affiliated companies are detailed below in the column entitled «Others». In this case, these are operations carried out with
the Banque Fédérale des Banques Populaires and Natixis.
Transactions with companies consolidated according to the equity method are not neutralised. They appear in the column
entitled «consolidated according to the equity method».
In the balance sheet
Transactions affecting asset items with:
companies consolidated according to the equity method
other affiliated companies
31/12/07
31/12/08
31/12/07
31/12/08
Assets at a fair value by income 0
0
989 2,576
Hedging instruments 0
0
534 7,092
20,199 24,238 224,882 311,616
6,997 0
319,431 445,117
Loans and receivables from clients 0
0
0
0
Financial assets held until maturity 0
0
0
0
Goodwill on acquisition 0
0
0
0
57 111 3,635 3,732
27,253
24,349
549,471
770,133
Financial assets available for sale Loans and receivables from credit institutions Other assets Total assets 151
Transactions affecting liability items with:
companies consolidated according to the equity method
31/12/07
other affiliated companies
31/12/08
31/12/07
31/12/08
Financial liabilities at a fair value by income 0
0
773 6,297
Hedging instruments 0
0
7,890 2,374
7,686 0
183,355 164,498
Payables to clients 0
0
0
0
Liabilities in the form of securities issued 0
0
253,236 254,745
20 20 88,968 84,821
7,705
20
534,222
512,735
Payables to credit institutions Other liabilities Total liabilities
In the income statement
Transactions affecting the gross operating profit
152
companies consolidated according to the equity method other affiliated companies
31/12/07
31/12/08
31/12/07
31/12/08
Net banking income
General expenses
1,090
(209)
1,258
(325)
(2,394)
(6,646)
12,954
(7,188)
881
933
(9,040)
5,766
153
2. Parent-company financial
statements of Crédit
Coopératif
154
Annual Report 2008
Financial statements
Balance sheetASSETS
In thousands of euros at 31 December
Cash, central banks, postal-giro accounts Government stock and similar securities Receivables from credit institutions
- sight
- term
Receivables from customers
- Trade credit
- Other loans to clients
- Overdrafts on current accounts
- Factoring
Bonds and other fixed-income securities
Equities and other variable-income securities
Investments in subsidiaries and other securities held long-term
Shares in affiliate undertakings Assets on finance lease and on purchase-option rental
Outright rental
Intangible fixed assets Tangible fixed assets Subscribed, unpaid share capital
Company’s holding of its own shares
Other assets Adjustment accounts Total ASSETS
LIABILITIES
In thousands of euros at 31 December 2008
2008
175,838
422,848
2,024,681
627,656
1,397,025
5,340,598
214,404
4,800,562
325,632
2007
1,522,786 174,722 55,592 292,335 205,014 1,984,182
202,789
45,717
249,515
185,680
21,922 20,997
68,855 191,967 48,951
315,639
10,497,158
9,984,604
2008
Central banks, postal-giro accounts
1,641,049 - sight
372,480 - term
1,268,569 Customers’ credit balances
4,701,267 Regulated savings accounts
- sight
946,722 - term
108,078 Other debt
- sight
2,790,283 - term
856,184 Liabilities in the form of securities issued
2,859,481 - Short-term loan notes
85,249 - Interbank market securities
2,377,849 - Trade credit
396,383 - Other liabilities in the form of securities issued
Other liabili
68,651 Accrued charges and other accrual accounts
172,379 Provisions 10,917 Subordinated debt
195,354 General banking risk reserve 22,030 Equity capital excluding general Banking risk reserve
826,030 - Capital subscribed 493,719 - Share premium account 142,964 - Reserves 150,816 - Revaluation reserve
- Regulated provisions 4,601 - Balance of retained earnings (+/-) 15,171 - Result pending approval
- Net income/loss for the year(+/-) 18,759 Total LIABILITIES
234,218
472,509
1 706,217
542,993
1 163,225
4 518,188
227,879
3 905,562
384,746
10,497,158
2007
1,211,798
425,364
786,433
4,703,393
794,639
113,119
2,628,028
1,167,606
2,755,310
69,197
2,256,416
429,696
48,042
202,161
9,135
209,397
23,389
821,979
493,719
142,964
108,804
3,358
8,451
64,683
9,984,604
155
OFF BALANCE SHEET AT 31 DECEMBER 2008In thousands of euros at 31 December
2008
2007
192,856 498,259 97,225
457,530
COMMITMENTS GIVEN
Financing commitments
Commitments in favour of credit institutions
Commitments in favour of clients
Guarantee commitments
Commitments on behalf of credit institutions 13,773
commitments on behalf of clients 1,287,941
Commitments relating to securities
Securities acquired on reverse repo Other commitments by the company
COMMITMENTS RECEIVED
Financing commitments
Commitments receveid from credit institutions 1,208,552
Commitments received from credit institutions 815,774
Commitments relating to securities
Securities sold on repo Other commitments received 5,661
1,309,682
659,450
251
Annual Report 2008
PUBLISHED INCOME STATEMENTIn thousands of euros at 31 December
2008
2007
Income and expenses from banking operations
+ INTEREST RECEIVED AND SIMILAR INCOME
519,248 + Interest and similar income on operations with credit institutions
93,383 + Interest and similar income on operations with clients
273,584 + Interest and similar income on bonds and other fixed-income securities
140,468 + Other interest received and similar income
11,812 + INTEREST PAID AND SIMILAR EXPENSES
(362,877) + Interest paid and similar expenses on operations with credit institutions 57,189 + Interest paid and similar expenses on operations with clients 87,299 + Interest paid and similar expenses on bonds and other fixed-income securities 201,163 + Other interest paid and similar expenses
17,226 + Income from finance-leasing operations and purchase-option rental operations 88,674 - Expenses on finance-leasing operations and purchase-option rental operations 78,802 + Income from outright rental operations
- Expenses on outright rental operations
+ INCOME FROM VARIABLE-INCOME SECURITIES
24,120 + COMMISSION INCOME
73,644 - COMMISSION EXPENSES
(22,425) +/-TRADING-PORTFOLIO GAINS OR LOSSES 6,472 +/- Gain/loss on operations in traded securities
(849)
+/- Net gain/loss on foreign-exchange operations
1,328 +/- Net gain/loss on futures and options transactions 5,993 +/-GAINS OR LOSSES ON PORTFOLIO-INVESTMENT AND SIMILAR TRANSACTIONS
7,082 + OTHER INCOME FROM BANKING OPERATIONS 131 + Income from real-estate developments
+ Other income
131 - OTHER BANK OPERATING EXPENSES
(103) - Expenses on real-estate developments
- Other expenses
103 +/- NET BANKING INCOME
- GENERAL OPERATING EXPENSES
- Staff costs
- Other administrative expenses
- GENERAL OPERATING EXPENSES AND DEPRECIATION
ON TANGIBLE AND INTANGIBLE ASSETS
+/- EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION
- COST OF RISK 255,163 (164,867) 94,710
70,157
(531)
23,000
62,186
(21,304)
267
(83)
(563)
912
5,688
125
125
(176)
176
222,117
(163,155)
103,534
59,622
(592)
89,765
(77,737) 58,370
(18,956)
+/- NET OPERATING INCOME
12,028
+/-GAINS OR LOSSES ON CAPITAL ASSETS
(1,006)
+/- Gains or losses on intangible and tangible fixed assets
(21)
- +/- Gains or losses on long-term financial assets
(985)
+/- PROFIT BEFORE TAX ON ORDINARY OPERATIONS
11,022
+/-NET EXTRAORDINARY PROFIT OR LOSS
- CORPORATE INCOME TAX
7,621
+/-APPROPRIATIONS TO/REVERSALS FROM GENERAL BANKING RISK RESERVES
AND REGULATED PROVISIONS
116
+/- Appropriations to/reversals from general banking risk reserves
1,359
+/- Appropriations to/reversals from regulated provisions
(1,243)
+/- NET INCOME/LOSS FOR THE YEAR
450,493
66,080
230,855
139,928
13,630
(303,770)
49,682
70,201
164,206
19,682
81,983
76,374
18,759
39,414
44,885
74
44,811
84,299
(26)
(13,264)
(6,325)
(5,470)
(855)
64,683
157
CONSOLIDATED NOTES
AND APPENDICES
Notes to the parent
Company financial statements
C
rédit Coopératif, a société anonyme coopérative de
Banque Populaire (people’s bank in the form of a
cooperative public limited company) with variable
capital, incorporates within its consolidation scope
the credit institutions that signed an association agreement
including its subsidiaries and non-banking acquisitions.
1 ACCOUNTING PRINCIPLES AND METHODS-
exchange rate at the period-ending date.
Unrealised or final foreign-exchange gains and losses are
posted to income.
Foreign-currency expenses and income paid or received are
recorded at the rate prevailing on the transaction date,
whereas expenses and income that are accrued but not paid
or received are converted at the exchange rate prevailing at
the year-end date.
1.4 ASSETS balance sheet
The annual financial statements are drawn up in accordance with
the regulations applicable to credit institutions and in compliance
with generally-accepted French accounting principles.
The rules for publication of the accounts are applied in compliance
with regulations n° 91-01 of the Comité de la Réglementation
Comptable (Accounting Regulations Committee) dated 16
January 1991, including all the updates up to regulation n° 200705 dated 14 December 2007, except regulation CRC 2008-15
concerning accounting procedures for options involving stock
purchase or subscription plans and plans involving free share
allocations to employees, to the extent that the expense arising
from free allocation of shares (SAGA) had already been noted in
full in 2007, prior to publication of the regulations.
> Loans to clients
Client loans are entered in the balance sheet at their nominal
value. Accrued interest on receivables is posted under
counterparty related-receivables accounts to the related
income-statement items.
1.1 Accounting method changes implemented
iduring the 2008 financial year
Debt definition and classification Credit risk: existence of a potential loss related to possible
failure of the counterparty to honour its commitments.
Ascertained credit risk: probability that the institution is
unlikely to recover all or part of the sums owed under the
commitments subscribed to by the counterparty in accordance
with the initial contractual terms, despite the existence of a
guarantee or deposit, and association of this likely loss with
one of the following situations:
- one or more unpaid accounts for at least three months,
- a worsening in the financial situation of the counterparty,
- the existence of disputes or litigation between the
institution and the counterparty.
Healthy debt: accounting classification of outstanding loans
that correspond to a normal commercial relationship,
excluding all ascertained credit risk.
Doubtful debts: accounting classification of loans carrying an
ascertained credit risk.
Compromised doubtful debts: doubtful debts with significantly
No accounting method changes have been implemented
during the 2008 financial year.
1. 2 Recourse to estimates
In some fields, preparation of the Crédit Coopératif Group’s annual
accounts requires formulation of hypotheses and drawing up
estimations on the basis of the information available at
31 December 2008.
These estimations underlying preparation of the annual accounts
have been drawn up in a context marked by uncertainties
concerning the economic prospects and highly volatile markets. The
main estimations and hypotheses put forward by the management
concern evaluation of the asset depreciations and provisions.
1.3 Conversion of currency operations
Assets, liabilities and off-balance-sheet commitments
denominated in foreign currency are converted at the official
> Doubtful debts and losses
Crédit Coopératif applies CRC regulation No. 2002-03,
modified by CRC regulation No. 2005-03 of 3 November 2005,
concerning the accounting treatment of credit risk. The
possibility of deferring the application of article 3a to 1
January 2007, regarding the transfer of unauthorised
overdrafts into doubtful debts, has been used.
Annual Report 2008
deteriorated prospects of recovery which are being considered
for writing off in the long run. Provision must be made for
losses of an appropriate amount.
Restructured debts: any abandoning of principal or interest,
either outstanding or accrued, when restructuring a debt is
recorded as a loss. The discount, representing the differential
between the original contractual cash-flow discounting
expected and future cash-flow discounting expected of capital
and interest as a result of restructuring, is charged as cost of
risk. The risk of non-recovery of cash-flow that still exists after
a restructuring operation is posted as a loss and added to the
discount.
No contracts have been subject to restructuring during the
financial year.
Segmentation of doubtful debt
The segmentation of doubtful debt and compromised doubtful
debt is performed on the same basis as for overall gross amounts
of debt outstanding, by counterparty type: non-financial
companies, sole traders, individuals, government and private
administration, other customer segments.
Rules governing doubtful debt
In general, doubtful debt is identified by means of attributes,
and compromised doubtful debts are recorded in special
accounts.
Classification, for a given counterparty, of a debt as doubtful
debt has a knock-on effect, with the classification on the same
footing of the whole of the outstanding debts and
commitments relating to the counterparty concerned,
notwithstanding the existence of a security or guarantee. This
rule concerns neither debt affected by isolated or shortduration disputes unrelated to any insolvency of the
counterparty, nor the credit risk dependent upon the solvency
of a third party.
Where the counterparty belongs to a group, the institution
examines the implications of such failure to pay for the group,
and determines whether to class as doubtful debt all or part of
the outstanding debt relating to the legal entities forming
such a group.
Regrading as healthy debt reflects the resumption of normal
trading relations, which is observed when regular payments
are resumed of the amounts corresponding to contractual
instalments.
Where, after regrading as healthy debt, the debtor fails to keep
up the payments at the set dates, the outstanding debt is
immediately downgraded to compromised doubtful debt.
A debt classed as a doubtful debt is downgraded to a
compromised doubtful debt:
- In the event of default or on termination of relations notified
in accordance with the contract in the case of undated
loans,
- One year after its classification as doubtful debt,
Unless the transfer to loss at term is not envisaged.
Where the debt becomes ascertainably bad, the debt is written
off as a loss, regardless of whether any provision for loss has
been previously recorded.
Accounting for hedging instruments
Hedging mechanisms arise from the following:
- A short-term credit policy stance favouring back-to-back
financing (trade discount and trade debt assignment),
- Effective implementation of second-level auditing,
performed by the commitments management department,
- Partnerships with insurance companies sharing signature
commitment risks or mutual-society partnerships pooling
medium- and long-term risks,
- Selection of collateral security (mortgage charges, fixed and
floating charges, pledges, etc.) or even securities given by
local government authorities.
Rules governing provisions
Doubtful-debt provisions are set aside on doubtful debts or for
risks, for the amount of probable losses and taking into account
any securities in favour of the bank.
These provisions are calculated after individual analysis of each of
the doubtful cases and are determined at quarterly intervals.
Provisions for risk are recorded as liabilities in the balance sheet
for unallocated customer risks and for off-balance-sheet
commitments.
Since 1 January 2005, provisions include future cash flow
discounting expected. The writing back of provisions as a result of
accretion is recorded as net banking income.
Interest on recorded doubtful debt is fully provisioned; interest on
compromised doubtful debt is no longer recorded in the accounts.
> Securities portfolio
Crédit Coopératif applies regulation No. 90-01 of 23 February
1990, including all modifications up to regulation No. 200501 of the Comité de la Réglementation Comptable, concerning
posting of operations in securities.
Crédit Coopératif has not carried out any accounting
restatements concerning securities under the conditions set
out in regulation No. 2008.17 of 10 December 2008 of the
Comité de la Réglementation Comptable (French accounting
regulation committee).
Securities are classified according to their nature – government
stock, bonds and other fixed-income securities, equities and other
variable-income securities – and the purpose of holding them –
for trading, short-term investment, portfolio activity, long-term
investment, investment in subsidiaries or shares in affiliates.
Trading securities
Acquired or sold for short-term resale or repurchase, these are
recorded at the time at their acquisition cost. At the year-end
date, they are valued at their market value, and any unrealised
gains and losses are written to income.
Short-term investment securities
Securities are considered as short-term investment securities if
they are not entered as trading or investment securities.
Recorded at the time of purchase for their acquisition price
excluding costs, short-term investment securities are valued at
the year-end at stock-market price for listed securities, and on
the basis of their probable trade value for unquoted securities,
while only unrealised losses are covered by a provision for loss.
159
Securities held to maturity
These are fixed-income securities acquired for long-term
holding until their maturation date, and benefiting from rate
or cash hedging. They are recorded at the time of purchase for
their acquisition price, and any difference between the
acquisition price and the redemption value is spread out as
income over the residual period until the securities mature.
When the accounts are closed, the latent capital gains or
losses are not entered.
Portfolio-activity securities
This category covers venture capital securities held for the
purpose of making medium-term capital gains without
intervention in management of the issuing companies.
Acquired cost-free, these securities are evaluated on closing at
their utility value. Unrealised capital gains are not recorded,
whereas unrealised capital losses are covered by loss entries.
Holdings and shares in affiliates
These are securities of which the durable possession is
considered conducive to the activity of the institution.) They
are recorded including costs at their purchase price and
evaluated at the time of closing at their utility value. Unrealised
capital gains are not recorded, whereas unrealised capital
losses are covered by loss entries.
> Capital assets
Tangible and intangible assets
The CRC issued a regulation (CRC 2002-10) applicable to
individual accounts as from 01/01/2005, concerning tangible
and intangible assets alike. Regulation 2004-06 concerning
definition and evaluation of assets also applies with effect
from 1 January 2005.
Tangible Operating Assets
Gross amounts outstanding are broken down into items based
on the existence of different periods of utilisation for each of
the separate items constituting the same asset. Borrowing
costs are not included when calculating the gross value of
assets. The useful life values applied by Crédit Coopératif are
as follows:
Items
Land Non destructible external walls External walls/roof/watertightness Foundations/framework External refurbishment Technical installations Interior fittings Useful Life
Not applicable
Not applicable
20-40 years
30-60 years
10-20 years
10-20 years
8-15 years
The items are written down on the basis of the reduced gross
value of their residual value and their useful life. The residual
value is defined as the current value of the asset at the end of its
probable working life. The residual value of items other than land
and non-destructible external walls is
deemed to be nil.
Movables are not broken down into items; they are written down
according to the useful life values shown below:
Assets
Office furniture and equipment Transport equipment Useful Life
5 to 10 years
5 years
The item breakdown method is also applied.
Intangible assets
Leasing rights are amortised on a linear basis over the residual
life of the lease and, where necessary, are subject to
depreciation on the basis of the market value.
The business is not subject to depreciation. Previous
depreciation values have been retained as it is no longer
possible (because of its age) to calculate the resources
contributed by the business involved.
Fixed assets for the equipment leasing activity
The equipment acquired by Crédit Coopératif, within the
framework of its equipment leasing activity, are initially
recorded at their acquisition cost and depreciated on a
straight-line basis or on a diminishing balance basis, in
accordance with their estimated working lives under the tax
rules. Some fixed assets can be the subject of further voluntary
depreciation within the limits of the diminishing balance
depreciation set by the French tax authorities.
«Article 29» provisions (law 99.1173 of 30 December 1999) are
set aside on a case-by-case basis to make up for such capital
losses as may result, at the end of the contractual period, from
the fact that the selling price of the equipment is lower than
the net book value.
Falls in the value of fixed assets are covered by depreciation.
1.5 LIABILITIES balance sheet
> Bonds issued
The costs relating to the issue of bonds are written down on
a straight-line basis over the maturity period of the issues;
premiums are also written down in equal amounts over the
term of the issues, regardless of the repayment intervals.
> Provisions entered for Company liabilities in
accordance with recommendation 2003 R 01 of the
Conseil National de la Comptabilité (French national
accounting council)
The provision entered in the balance sheet represents the
actuarial value of the retirement and other similar allowance
commitments concerning serving staff. It is reduced by the
market value of assets applied to cover commitments and
reduced or increased by the resulting actuarial differences:
- experiential differences due to demographic variables,
- changes in actuarial assumptions (discount rate, outgoing
rate, salary increase rate),
- differences recorded between the actual return and the
anticipated return from hedged asset plans.
Annual Report 2008
At 31 December 2008, the bank’s main actuarial hypotheses
were as follows:
- Adjustment rate : 4.25%,
- Expected rate of return: 0%, 2% or 4% depending on
the funds. The corridor method has been applied for retirement and
similar commitments (retirement lump sums).
A reminder is given here that evaluation of the retirement
lump sums was affected in 2005 by the French ministerial
application order of 18 July 2005 authorising employers to
arrange for staff to retire without having to pay contributions.
This impact was analysed as a change of scheme to be
depreciated over the remaining period for acquisition of
right as from July 2005.
sums took into account the French social
security finance law for 2008:
- The lump sums paid to staff on retirement were subject to
payment of employer contributions at a 25% rate from 11
October 2007 to 31 December 2008, and then 50% as from
1 January 2009,
- As from 2010, it will no longer be possible to arrange for
staff to retire before their 65th birthday.
legal modifications was spread over the average period
sums took into account the French social security finance
law for 2009:
- The possibility of arranging for staff to retire at the age of
65 was conserved for 2009 only,
- As from 2010, the possibility of arranging for staff to retire
is no longer envisaged.
legal modifications will be spread over the average period
> General banking risk reserve
This reserve, which can be classed with equity capital, records
the following:
- The appropriation to the regional solidarity fund instituted
as part of the guarantee system for the Banques Populaires
network,
- The allocation to general risk coverage.
1.6 Off-Balance Sheet Statement
> Financial futures
Hedging and market operations using future rate, currency
or share financial instruments are recorded in accordance
with regulation 90.15 of 18 December 1990, including all the
updates up to regulation N° 2002-01 issued by the Comité
de la Réglementation Comptable (French Accounting
Regulations Committee) on 12 December 2002. The nominal
commitments are posted in the off-balance-sheet statement,
and they reflect the volume of the current transactions,
without covering the counterparty or market risks.
Gains or losses on allocated hedging operations are posted
to income symmetrically to the posting of income or
expenses on the asset hedged; interest rate instruments are
posted to the same section as the income or expenses on the
assets hedged.
Hedging expenses and income relating to the company’s
global interest-rate risk operations are posted to income pro
rata temporis.
2 INFORMATION ON THE ITEMS IN THE
BALANCE SHEET, OFF-BALANCE-SHEETSTATEMENT AND INCOME STATEMENTBALANCE SHEET
OFF-BALANCE SHEET STATEMENT
INCOME STATEMENT
notes 1 to 36,
notes 37 to 41,
notes 42 to 48.
3 OTHER INFORMATION3.1 Depreciation on portfolio securities
issued by credit establishments outside
France
Confirmed counterparty risks concerning investment securities
entered in the balance sheet have led to entering a depreciation
expense of €42.235 M recorded in the cost of risk allocated to
credit establishments.
3.2 Receivables concerning losses
carried back
Corporate income tax is entered as income at a level of
€7.621 M, as against an expense of €13.264 M at 31/12/2007.
This situation results mainly from exercising the option
provided for under the terms of the French adjustment
finance law for 2008, consisting of setting the losses noted
in 2008 for tax purposes against undistributed income for
the previous three years. This receivable concerning the
French tax authorities (€6.090 M) can be refunded on
demand during the 2009 financial year. There is a further
income item amounting to €1.371 M concerning a tax rebate
for sponsoring activities.
3.3 Workforce
The average numbers of serving staff during the 2008 financial
year amounted to:
Clerical workers
682
Executives
770
Total 1.452
3.4 Employee share-owning incentive scheme
A profit-sharing agreement was signed by Crédit Coopératif on
29 June 2007, covering three years as from 1 January 2007. In
application of the agreement, an expense item was entered as
staff costs.
161
3.5 Remunerations, advances, loans and
commitments benefiting members of the
Senior Management and Executive bodies
Total amount of remuneration and commitments in respect of
retirement for the 2008 financial year
- To members of senior management €807,000
.
- To members of Executive bodies €869,000
Overall amount of advances and loans extended in 2008
- To members of senior management €3,007,000
.
- To members of Executive bodies €11,000
3.6 Individual right to training
Under the individual right to training scheme, the rights
acquired amounted to 123,616 hours as at 31 December 2008,
of which 123,553 remain available.
3.7. Commitments concerning guarantees
covering the liquidity and solvency of
the Banques Populaires
The system for guaranteeing the liquidity and solvency of the
Banques Populaires network was laid down by a general
decision of the Banque Fédérale des Banques Populaires, as
central body, pursuant to Articles L. 511-30, L. 511-31, L. 511-32
and L. 512-12 of the French Monetary and Financial Code.
This guarantee system is based on all the equity capital held by
the establishments in the network through a mechanism of
internal solidarity.
The Banque Fédérale implements the solidarity of the network
by calling for the necessary financial backing from all the
Banques Populaires, within the limits of their equity capital. The
Banque Fédérale’s own equity capital vouches as a last resort
for the liquidity and solvency of the Banques Populaires.
Under the internal solidarity mechanism, a first line of solidarity
is set up. It consists, on the one hand, of the federal solidarity
fund, an integral part of the Banque Fédérale’s general banking
risk reserve, and on the other hand of the regional solidarity
funds, integral parts of the Banques Populaires’ general banking
risk reserves. These regional funds are replenished each year by
allocations amounting to 10% of the net profits made by the
banques populaires before depreciation and dividends, and
after deduction of corporate income tax.
The banques populaires cannot avail themselves of these funds
without the approval of the Banque Fédérale.
It should be recalled, moreover, that the institutions of the
banques populaires network are members of the Deposit
Guarantee Fund instituted by law, of which all approved credit
institutions in France are members.
Annual Report 2008
Note 1
Central bank, Post Office accounts (CCP), government securities and interbank receivables
2008
2007
Funds, central banks, post office account CCP
175,838
Government and similar securities
422,848
Receivables from credit institutions
2,024,681
- sight
620,893
- term
1,380,466
- net doubtful debts
- provisions for country risks concerned
- non-allocated securities
- related receivables
23,322
234,218
472,509
1,706,217
533,776
1,157,811
In thousands of euros at 31 December Total
- Of which affiliates
- Of which Banques Populaires people’s banks network
Note 2
2,412,944
460,650
344,607
Breakdown by residual maturity
ASSETS
Receivables from credit institutions
Receivables from clients
Lease receivables
Bonds and other fixed income
securities
Total ASSETS
LIABILITIES
Debts to credit institutions
Debts to clients
Liabilities in the form
of securities issued
Subordinated loans
Total
2,623,367
649,010 480,752
14,630
<3
months
3 months <D< 1 year
1 year Not brokenTotal
<D< 5 years
> 5 years
down
at termt
573,335
265,338
577,229
377,962
60 1,793,924
442,343
470,804
1,774,263 2,207,878
15 4,895,303
20,089
50,568
135,656
6,026
212,339
667,425
1,318,037
1,454,135
507,309
606,086
131,438
184,518
352,931
145,155
268,684 1,260,362
13,423
949,182
1,009,920
570,467
766,001
77,000
478,553 2,824,941
70,000
22,868
169,868
2,123,315
886,423
300,865
241,267 1,491,827
282,270
2,788,013 2,833,133
1,341,087
830,660
75 8,393,393
22,868 5,204,353
163
Note 3
Breakdown of government securities
at 31 december 2008 2007
TransactionTrading
Investment
TotalTransactionTrading
Investment
Total
Gross amounts
413.459 413.459
462.447 462.447
Depreciation
Related receivables
9.389
9.389
10.062 10.062
Total
Note 4
422.848 422.848
Healthy interbank debts
at 31 december 2008
At sightTerm
Accounts and loans 620.893
Financial loans
Repo securities received
Repo stock received
Fixed term subordinated loans
Non-fixed term subordinated loans
1.051.869
At sightTerm
1.672.762
533.776
825.133
295.153
295.153
299.897
33.385
33.385
32.721
60
60
60
Total
1.358.909
299.897
32.721
60
2.001.360 533.776 1.157.811 1.691.587
Operations with clients – assets
In thousands of euros at 31 December Overdrafts on current accounts
Commercial debts
Other client loans
Related receivables and unposted items
Net doubtful debts
Country risk depreciation
Total
2007
Total
Total 620.893 1.380.467
Note 5
472.509 472.509
2008
2007
316.359
198.441
4.696.863
26.287
102.648
369.692
216.784
3.821.677
19.937
90.098
5.340.598
4.518.188
Annual Report 2008
Note 6
Breakdown of other client loans
2008
Export credits
5.208
Liquidity and consumer credit facilities
220.625
Equipment loans
3.862.071
Home loans
576.537
Other client loans
Repo amounts received
Repo securities received
31.157
Subordinated loans
1.265
Total
Note 7
29.850
200
4.696.863
3.821.677
Equipment leasing and rental
2008
2007
Equipment
Rental
TotalEquipment
In thousands of euros at 31 December leasing
leasing
Client debts (financial)
Temporarily non-leased property
Depreciation
Net doubtful loans
Related receivables
212.339
764
(90)
2.863
730
212.339
764
(90)
2.863
730
Total
216.606
216.606
Note 8
5.858
177.914
3.180.642
427.208
5
Rental
192.938
1.168
(302)
2.039
621
Total
192.938
1.168
(302)
2.039
621
196.464 196.464
Changes in leasing and similar transactions
Decreases
2008
Gross values of assets Amortisation
Provisions Article 29
Depreciation
Related receivables
352.613
101.374
75.919
(167.708)
(70.836)
(63.892)
(423)
(419)
(301)
(66)
(277)
1.499
193
378.068
(174.652)
(4)
(90)
1 692
Total
185.680
205.014
Increases
LEASING
30.665
11.331
165
Note 9
Breakdown of loans by economic transactor
2008
CreditNon
Sole
IndividualsPrivate
State,Other
institutions -financial traders
administrationgovernment items
companies
agencies and
at 31 December
social security
Total
Credit institution
transactions
2.024.681 2.024.681
Customer and leasing
transactions
Healthy loans 3,367.424
27.650 513.865 1,435.619
65.674
8.337 5.418.569
Doubtful debts 130.811
14.796
24.620
72.216
37 242.480
- Non compromised
47.442
5.589
9.327
27.257
7
89.622
- Compromised
83.369
9.207
15.293
44.959
30 152.858
Depreciation on
doubtful debts/assets (74.462)
(8.192) (13.604) (40.009)
(28) (136.295)
- Non compromised (17.400)
(2.143)
(3.585) (10.439)
(33.567)
- Compromised (57.061)
(6.050) (10.019) (29.570)
(28) (102.728)
Of which:
Subordinated debts
750
750
Subordinated doubtful
debts
Depreciation on
subordinated doubtful debts
Leasing debts 198.039
1.936
852
11.639
603 213.069
Doubtful leasing
debts 12.316
120
53
724
37 13.250
Depreciation on doubtful
leasing debts (8.945)
(87)
(38)
(526)
(27) (9.623)
Depreciation on leasing
debts (84)
(1)
(5)
(90)
Securities transactions Fixed income securities
debts
1.140.511 143.194
203.721 35.361 1.522.787
Doubtful securities
debts
52.037 52.037
securities debts
(41.888) (41.888)
Annual Report 2008
Note 9
Breakdown of loans by economic transactor
2007
CreditNon
Sole IndividualsPrivate
State,Other
institutions -financial traders
administrationgovernment items
companies
agencies and
at 31 December
social security
Total
Credit institution
transactions
1.706.217 1.706.217
Customer and leasing
transactions
Healthy loans 2.758.468
28.809 433.518 1.248.102
36.628 86,066 4.591.591
Doubtful debts 80.856
11.225
25.227
87.851
676 205.835
- Non compromised
28.954
3.358
7.468
26.162
210
66.152
- Compromised
51.902
7.867
17.759
61.689
466 139.683
Depreciation on
doubtful debts/assets (46.983)
(5.922) (13.273) (46.294) (360) (112.832)
- Non compromised (5.572)
(819)
(1.849)
(6.424)
(49) (14.713)
- Compromised (41.585)
(5.088) (11.389) (39.747)
(310) (98.119)
Of which:
Subordinated debts
202
202
Subordinated doubtful
debts
Depreciation on
subordinated doubtful debts
Leasing debts 180.009
1.645
1.723
9.891
290 193.558
debts 12.875
118
123
707
21 13.844
dépréciations Créances
leasing debts (9.892)
(90)
(95)
(544)
(16) (10.637)
Depreciation on leasing
debts (281)
(3)
(3)
(15)
(302)
Securities transactions Fixed income securities
debts
1.392.530 300.022 205.313 86.317 1.984.182
Doubtful securities
debts
securities debts
167
Note 10
Securities portfolio
at 31 december Transac-Trading
tion
Bonds and similar
securities
Gross book values
Depreciation
Net values
Stocks and similar
securities
2008
2007
Invest-TAP TotalTransac-Trading Invest-TAP
ment
tion
ment
Total
41.159 1,526,251 1.567.410 109.324 1.875.739 1.985,063
(1.496) (43.128) (44.624)
(881)
(881)
39.663 1.483.123 1.522.786 108.443 1.875.739 1.984.182
Gross amounts 185
Depreciation
Net values 185
173.559 6.596
(4.519) (1.099)
169.040 5.497
Total 185
208,703 1 483,123 5 497 1,697,508 3,786 3,04 4,371,875 ,739 3 ,0092,186 ,971
Gross book value
Market
value
180.340 3.786 197.037 4.109
(5.618) (1.043)(1.100)
174.722 3.786 195.994 3.009
2008
RedemptionUnrealisedUnrealised
value
capital gain capital loss
204.932
(2.143)
202.789
Depreciation
Short-term investment securities and portfolio activities (excluding loaned securities)
Fixed-income securities
Variable-income securities
40.724
180.155
39.775
40.571
174.889 546
352
1.496
5.618
1.496
5.618
Investment securities (excluding loaned securities)
Note 11
1.864.561
1.909.027
1.842,235
44.465 Bonds and other fixed income securities
at 31 december TransactionTrading
2008
Investment
TotalTransactionTrading
2007
Investment
Total
Gross book values
Listed securities
Issued by
public bodies
Other issuing houses
444
598.458
598.458
926 1.437.321 1.438.247
Unlisted securities
350.420
350.864
Issued by
public bodies
15.280
15.280
201.880
201.880
Other issuing houses 40.280
486.945
527.225 108.018
211.747
319.765
Loaned securities
Borrowed securities
Doubtful debts
52.037
52.037
Related receivables
435
23.111
23.546
379
24.790
25.169
Subtotal: gross
valuess
41,159 1,526,251 1,567,410 109,324 1,875,739 1,985,063
of which subordinated debts 27.527
4.727
32.254 10.559
4.727
15.286
Depreciation and Provisions
Depreciation on
doubtful debts
Depreciation
Country risk provisions
Subtotal: provisions
Total
(1.496)
(43.128) (1.496)
(881)
(43.128)
(881)
(1.496)
(43.128)
(44.624)
(881)
39.663
1.483,123
1.522.786
(881)
108.443
1.875,739 1.984.182
Annual Report 2008
Note 12
Equities and other variable-income securities
at 31 december 2008
TransactionTradingTAP
2007
TotalTransactionTradingTAP
Total
Gross book values
Listed securities
Capitalisation
UCITS
Other UCITS
Other securities
185
185
200
200
Unlisted securities
OPCVM de
Capitalisation UCITS
Other UCITS 170.614 170.614
3.586
193.911
Other securities
2.945
6.596
9.541
3.126
4.109
197.497
7.235
Related receivables
Subtotal: gross values 185
173.559
6.596
180.340
3.786
197.037
4.109
204.932
Depreciation
on listed securities
on unlisted securities
(4.519)
(1.099)
(5.618)
(1.043)
(1.100)
(2.143)
on own shares
Subtotal: provisions
Total
NOTE 13
(4.519)
185 169.040
(1.099)
(5.618)
5.497 174.722
3.786
(1.043)
195.994
(1.100)
(2.143)
3.009 202.789
Changes in securities held to maturity
2007Purchases Disposals Redemp- Conver-Discount /Transfers
at 31 december tion
sionPremium
OverallOther items 2008
regrading variations
Government stock
Gross value
Results of transfers completed
462.447
(45.735) (3.253)
413.459
Bonds and other FRS
Gross value
1.875.740 3.150.299 (20.345) (3.475.760) (2.971) (51.169) 50.457 1.526.251
Results of transfers completed (966)
(966)
169
Annexe 14
Investments in subsidiaries, shares in affiliates, and other long-term securities held
2008
Gross financial assets
348.760
296.681
Depreciation
(1.468)
(1.450)
Net financial assets
347.292
295.231
Currency translation
635
Related and other receivables
Total
Annexe 15
347.927
295.231
Changes in shareholdings and related holdings
Increases
Decreases
2008
ConversionOther changes
Gross book values
Investments in subsidiaries and other
securities held long-term
46.948
9.950
(157)
(634)
56.107
Shares in affiliates
249.515
37.457
(810)
6.173 292.335
Shares in property investment companies 218
100
318
Subtotal
296.681
47.507
(967)
(634)
6.173 348.760
Depreciation
Investments in subsidiaries and other
securities held long-term
(1.449)
(56)
37
Shares in affiliates
(1)
1
Shares in property investment companies
Subtotal
(1.450)
(56)
37
1
295.231
Net financial assets Annexe 16
47.451
(930)
(634)
(1.468)
(1.468)
6.174 347.292
Intangible assets and fixed assets
at 31 December 2008
2007
Gross
values
Amortisa- Deprecia-Net
tion
tion
values
Gross
values
Amortisa- DepreciaNetat 31
tion
ciation values
4.999
34.453
39.452
(4.592)
(407)
(12.798)
21.655
(17.390)
(407)
21.655
4.999
33.294
38.293
(4.592)
(407)
(12.572) 20.722
(17.164) (407) 20.722
Operating
assets
Intangible assets
Tangible assets
Subtotal
Non-operating
fixed assets
Total
535
39.987
(268)
(17.658)
(407)
267
535
21.922
38.828
(260)
(17.424)
275
(407) 20.997
Annual Report 2008
Annexe 17
Changes in operating and non-operating fixed assets
Increases
DecreasesOther items
2008
Gross book values
Intangible operating fixed assets
Leasehold rights and trade goodwill
4.999
4.999
Software
Other items
Subtotal
4.999
4.999
ngible operating fixed assets
Land
Constructions
Shares in property investment companies
Other items
Subtotal
2.148
18.045
564
(312)
12.917
796
184
117
(6)
33.294
1.477
(318)
2.148
18.297
13.713
295
34.453
535
535
Amortisation and depreciation
Intangible operating fixed assets
Leasehold rights and trade goodwill
(4.999)
Software
Other items
Subtotal
(4.999)
(4.999)
Tangible operating fixed assets
Land
Constructions
(12.484)
(521)
289
Other items
(88)
(1)
7
Subtotal (12.572)
(522)
296
(12.716)
(82)
(12.798)
Annexe 18
(260)
(8)
(4,999)
(268)
Tangible operating fixed assets – breakdown of constructions
In thousands of euros at 31 December Gross
values
2008
Amortisation and depreciation
Net
values
Constructions
Non destructible external walls
External walls/roofing/waterproofing
Foundations/framework
External refurbishment
Technical installations
Interior fittings
Total
366
1.102
(480)
3.339
(1.138)
42
2.510
(1.531)
10.938
(9.567)
18.297
(12.716)
366
622
2.201
42
979
1.371
5.581
171
Annexe 19
Adjustment accounts, other assets
2007
Other assets and miscellaneous
employment of funds
68.855
191.967
48.951
315.639
260.822
364.590
Total
Annexe 20
Other assets and miscellaneous employments of funds
Options instruments purchased
609
Settlements of transactions in securities
3.293
Property development
Other stocks and miscellaneous employments of funds
Sundry debtors
64.953
Net doubtful debts
Related receivables
TotaL
Annexe 21
68.855
2007
1.046
9.530
38.375
48.951
Accrual accounts (assets)
2008
2007
Collection accounts
60.680
Adjustment accounts
269
Variance accounts
Potential gains on unsettled hedging contracts
1.142
Potential losses on settled hedging contracts
2.790
Prepayments
25.886
Deferred income
1.860
Issue premiums to be carried forward
Other deferred charges
Other accruals
99.340
71.910
88
191.967
1.665
8.469
33.834
2.579
197.094
315.639
Annual Report 2008
Annexe 22
Central bank, CCP postal giro and debts to credit institutions
2008
2007
Central banks, CCP postalgiro a/cs
Accounts and borrowings
sight
370.710
term
1.260.362
Other amounts payable
700
Related accounts payable
9.277
421.664
782.338
400
7.396
- dOf which Banques Populaires people’s banks network Annexe 23
1.641.049
117.885
113.554 1.211.798
143.514
143.514
Details of interbank resources
At sightTerm
Total
2007
At sightTerm
Current account balances 370.710 370.710
421.664
Accounts and borrowings 1.232.652 1.232.652 654.628
Amounts delivered on repo 100.000
Securities delivered on repo
27.710
27.710
27.710
Total 370.710 1.260.3621.631.072
Annexe 24
421.664
654.628
100.000
27.710
782.338 1.204.002
Operations with clients – liabilities
In thousands of euros at 31 December Accounts and borrowings
sight
term
Deposits and guarantees
Other amounts payable
Total
421.664
Total
2008
2007
3.690.692
949.182
3.378.469
1.261.414
46.311
15.082
44.199
19.311
4.701.267
4.703.393
173
Annexe 25
Breakdown of other client accounts - Liabilities
In thousands of euros at 31 December At sight
2008
term
Total
At sight
2007
term
Specially-regulated savings accounts
946.647 108.067 1.054.714
794.639
113.059
Accounts and borrowings
2.744.045 620.794 3.364.839
2.583.830
603.529
Borrowing from financial clients
20.000
20.000
500
Amounts delivered on repo
Securities delivered on repo
200.321
200.321
544.326
Total 3.690.692 949.182 4.639.874
Annexe 26
907.698
3.187.359
500
544.326
3.378.469 1.261.414 4.639.883
Debts represented by a security
Short-term loan notes and savings bonds
83.683
Interbank market securities
Negotiable debt securities
2.352.723
Of which: - subscribed by credit institutions
725.291
- subscribed by financial clients
306.800
- souscrits par la clientèle
1.320.632
Bonds issued
388.535
Other liabilities in the form of securities issued
34.540
Total
Annexe 27
Total
2.859.481
2007
67.924
2.224.081
913.890
84.277
1.225.914
421.829
41.476
2.755.310
Adjustment accounts, other liabilities
2007
Other liabilities
Accruals
68.651
172.379
48.042
202.161
241.030
250.203
Total
Annual Report 2008
Annexe 28
Other liabilities
2008
2007
Options instruments sold
120
Settlements of transactions in securities
40
Deferred-tax liabilities
Liabilities on securities
Outstanding payments on securities not fully paid 14.748 Sundry creditors 51.774 Investment grant
Allocated government stocks 1.969
158
1,044
Annexe 29
1.969
68.651
48.042
2008
2007
58.656 3.935 51.260
2.837
425 11.280 45.186 52.897 547
16.733
37.603
93.181
172.379
202.161
Accrual accounts (liabilities)
In thousands of euros at 31 December Collection accounts Adjustment accounts Variance accounts
Potential gains on unsettled hedging contracts
Potential gains on settled hedging contracts Unearned income Accrued charges Other accruals Total
Annexe 30
5.491
39.380
Summary of depreciation and provisions
Increases
DecreasesOther items variations
2008
Provisions written against assets
Depreciation for doubtful debts
112.569
89.075
(21.229)
(1.044)
Depreciation for market transaction risks
5.606
5.319
(1.839)
(2)
Country risk provisions Total depreciation
118.175
94.394
(23.068)
(1.046)
179.371
9.084
188.455
Counterparty-risk provisions Provisions for depreciation risks
Provisions for operating expenses Provisions for social commitments
Extraordinary provisions
Total provisions for liabilities
5.785 6.536 (3.806) 8.515
2.779 46 (1.151) 1.674
571 9.135
211
6.793
(54) (5.011)
728
10.917
Total
101.187
(28.079)
Effect on the income statement 73.108
175
Annexe 31
2007 Increases
Provisions for off-balance sheet social commitments
In thousands of euros at 31 December Country risk provisions 278 Sectoral provisions 1.935 Provisions for client disputes 3.572 6.536 Other customer provisions
5.785
6.536
DecreasesOther items variations
2008
(278)
(1.935) (1.593)
(3.806)
8.515
8.515
Provisions for company commitments
CAR Retirement benefits
57
166
Long-service awards
514
45
(54)
FCR
Mutual societies
Other items
571
211
(54)
223
505
728
Provisions for depreciation risks
Securities portfolio and future financial instruments
Financial assets
Property development Other assets
Provisions for future operating expenses
Provisions for taxes and duties
Other provisions for operating expenses
2.779
46
(1.151)
2.779
46
(1.151)
1.674
1.674
Extraordinary provisions
Provisions for IT restructuring
Provisions for extraordinary restructuring
Other extraordinary provisions
Total
Annexe 32
9.135
6.793
(5.011)
10.917
Cover for doubtful receivables
2008
In thousands of euros at 31 December Gross
DepreciationNet
values
values
2007
Gross
DépréciationsNet
values
values
Interbank operations
Doubtful
Compromised doubtful
Transactions with clients
and leasing
242.480
(136.295)
106.185
205.835
(112.832)
Doubtful
89.622
(33.567)
56.055
66.152
(14.713)
152.858
(102.728)
50.130
139.683
(98.119)
Securities portfolio and sundry debtors
39
(39)
39
(39)
Doubtful
39
(39)
39
(39)
Total doubtful receivables
-Doubtful
-Compromised doubtful
242.519
89.622
152.897
(136.334)
(33.567)
(102.767)
106.185
56.055
50.130
205.874
66.152
139.722
93.003
51.439
41.564
(112.871) 93.003
(14.713) 51.439
(98.158) 41.564
Annual Report 2008
Annexe 33
Subordinated debt
2007
Fixed term subordinated debts Non-fixed term subordinated debts Mutual guarantees extended Related accounts payable 147.000 22.868 22.266 3.220 162.245
22.868
20.649
3.635
195.354
209.397
Total
Date
d’emission
Currency
Amount
of issue
Date
d’emission
EUR
22 867
Undated
EUR
EUR
EUR
EUR
EUR
30,000
30,000
15,245
40,000
47,000
17/12/2014
30/06/2010
29/06/2008
19/11/2016
28/06/2012
Reference
rate
Near-equity loans (1)
CC near-equity loan 29/01/1986
Other subordinated debt (2) CREDIT COOP 4% 17/12/14 TSR
17/12/2004
CREDIT COOP 6,25% 30/06/10 TSR
30/06/2000
CCCC 5,35% 29/06/08 TSR
29/06/1998
CREDIT COOP 4,15% 17/11/16 TSR
19/11/2006
CCCC 6% 28/06/12 B TSR 28/06/2002
TMO
2008
2007
22 867
22 867
4%
30,000
6.25%
30,000
5.35%
4.15%
40,000
6%
47,000
30.000
30.000
15.245
40.000
47.000
Total 185.112
Capital
outstanding
169.867
185.112
(1) Near-equity loans: These are non-redeemable, except at par in the event of liquidation. Crédit Coopératif reserves the right to redeem these securities through the
market (Public Offer for Purchase [“OPA”]) and to offer to exchange them (Public Offer for Exchange [“OPE”]).
(2) Subordinated securities: In the event of the issuer’s going into liquidation, these securities are redeemed to the holders after paying off all preferential or
chirographic creditors. Crédit Coopératif reserves the right to redeem securities early by repurchasing through the market; it may also redeem these securities
through Public Offers for Exchange [“OPE”] and Public Offers for Purchase [“OPA”].
Annexe 34
General banking risk reserve
DecreasesOther variations
2008
General banking risk reserve
Regional Solidarity Funds
10.220
(2.000)
13.169
641
8.220
13.810
Total
23.389
Increases
641
(2.000)
22.030
177
Annexe 35
Equity capital
Share
Issue RegulatedRevaluation Reserves and Equity capital FRBGEquity
capital (1)
premiumsProv and reserve
amounts excluding
capital
Réglem.
carried General Banking
Equity capital and grants
forward Risk Reserve
Income at
31/12/04 before appropriation
232.780
66.106
1.294
71.482
371.662 13.316
Income at 31/12/04
21.351
21.351
Distribution
(5.208)
(5.208)
Equity capital at
31/12/04 after appropriation 232.780
66.106
1.294
87.625 387.805 13.316
Capital increase
58.230
58.230
Currency translation difference
Accounting method changes
(2.815)
(2.815)
Net appropriations to regulated
provisions
456
456
Net appropriation to the General banking risk reserve
2.304
Other changes
Equity capital at
291.010
66.106
1.750
84.810
443.676 15.620
Income at 31/12/05
25.069
25.069
Retailing
(6.826)
(6.826)
Equity capital at
66.106
1.750
103.053 461.919 15.620
Capital increase
202.709
76.858
279.567
provisions
587
587
2.299
Other changes
9
(490)
(481)
Equity capital at
493.719
142.964
2.346
102.563
741.592 17.919
Income at 31/12/06
26.820
26.820
Distribution
(10.188)
(10.188)
Equity capital at
142.964
2.346
119.195 758.224 17.919
Capital increase
(1.940)
provisions
856
856
5.470
Other changes
156
156
Capitaux propres 493.719
142.964
3.358
117.255
759.236 23.389
au 31/12/07 avant affectation
Income at 31/12/07
64,683
64,683
Equity capital at
142.964
3.358
181.938 823.919 23.389
Capital increase
provisions
1.244
1.244
Net appropriation to the General banking risk reserve (1.359)
Other changes
384.978
21.351
(5.208)
401.121
58.230
(2.815)
456
2.304
459.296
25.069
(6.826)
477.539
279.567
587
2.299
(481)
759.511
26.820
(10.188)
776.143
(1.940)
856
5.470
156
780.685
64,683
845.368
1.244
(1.359)
Annual Report 2008
Annexe 35 (suite)
Equity capitaL
Income at 493.719
142.964
4.602
31 december 2008 before appropriation
Income at 31 décembre 2008
Distribution
Equity capital at 493.719
142.964
4.602
31 december 2008 after appropriation
181.938
825.163
18.759
(15.951)
200.697
22.030 845.253
18.759 18.759
(15.951) (15.951)
843.922 22.030 848.061
(1) Share capital breakdown at 31 December 2008: 2,743,596 A shares, 14,932,704 B shares, 8,223,700 C shares and 6,475,001 cooperative
investment certificates; all these securities have a unit value of €15.25.
Annexe 36
Appropriation of earnings Proposed appropriation of earnings (in euros)
Determination of earnings to appropriate
EARNINGS for the financial year
RETAINED EARNINGS carried forward
Drawing from reserve prescribed by the Articles
EARNINGS available for appropriation
Appropriation of available earnings
Legal reserve (15% of 18,758,920.00) Reserve prescribed by the Articles
Special investment reserve
Other reserves
Dividends on A shares
Dividends on B shares Dividends on C shares Dividends on CIC shares Rebate RETAINED EARNINGS carried forward 18.758.920
15.171.283
33.930.203
2.813.838
8.179.157
4.570.692
3.554.776
750.000
14.061.740
Total
Annexe 37
Total amount
33.930.203
Capital commitments
In thousands of euros at 31 December Capital commitments made
To credit institutions
To clients
- Documentary credits opened
- Other confirmed credits opened
- Other commitments
Total
Of which affiliates
2008
2007
192.856
498.259
19.988
470.576
7.695
97.225
457.530
17.689
437.772
2.069
691.115
188.282
554.755
93.231
Financing commitments received
From credit institutions
From clients
1.208.552
Total
1.208.552
179
Annexe 38
In thousands of euros at 31 December Guarantee commitments made
On behalf of credit institutions
Confirmation of opening documentary credits
Other guarantees
On behalf of clients
Property deposits Administrative and fiscal deposits Other deposits and guarantees provided Other guarantees provided Total
Guarantee commitments received from credit institutions
Annexe 39
2008
2007
13.773
22
13.751
1.287.941
47.436 41.484 448.525 750.496 5.661
364
5,297
1.309.682
50.437
40.004
417.269
801.972
1.301.714
1.315.343
815.774
371.338
659.450
296.984
Futures and options transactions
2008
2007
HedgingOthers Total
HedgingOther
Notional and fair value
transactions
transactions
at 31 December
Total
Firm transactions
Transactions on organised markets
Interest rate contracts
124
124
100
Foreign-exchange contracts
Financial assets
4.823
4.823
17.401
4.947
4.947
17.501
Over-the-counter transactions
Forward interest rate agreements
Interest-rate swaps
Other forward contracts
100
17.401
17.501
1.999.901
17.000
2.016.901
2 114.143
87.000
2,201.143
1.999.901
17.000
2.016.901
2.114.143
87.000
2.201.143
Forward foreign-exchange contracts
Brokerage swaps
to be received
to be delivered
Financial swaps
to be received
to be delivered
Other foreign-exchange contracts
to be received
to be delivered
76.866
20.056
76.866
20.056
262.158
211.756
262.158
211.756
54.399
46.557
197.878
54.399
46.557
197.878
16.109
6.249
496.272
16.109
6.249
496.272
2.004.848
214.878
Total firm transactions
2.219.726
2.131.644
583.272 2.714.916
Annual Report 2008
Annexe 39
(suite) Futures and options transactions
2008
2007
HedgingOthers Total
HedgingOther
Notional and fair value
transactions
transactions
at 31 December
Total
Transactions on organised markets
Exchange-rate options
purchased
sold
purchased
sold
Other transactions
achetées
sold
Over-the-counter transactions
purchased
63.837
63.837
49.762
sold
44.676
44.676
27.550
purchased
sold
Other transactions
purchased
sold
108.513
108.513
77.312
Total optional
transactions
108.513
Total future financial instruments
and foreign exchange
2.113.361
214.878
108.513
77.312
2.328.239
2.208.956
49.762
27.550
77.312
77.312
583.272 2.792.228
181
Annexe 40
Classification of future financial instruments by portfolio
2008
Micro
MacroOpenTrading Total
hedging hedging isolated
at 31 December position
2007
Micro MacroOpenTrading
hedging hedging isolated
position
Total
Firm transactions
Forward interest rate
agreements
Interest-rate swaps
1.856.901 143.000 17.000 2.016.901 1.875.408 238.735 70.000 17,000 2.201.143
interest-rate and foreign
currency swaps
Other forward contracts
1.856.901 143.000 17.000 2.016.901 1.875.408 238.735 70.000 17.000 2.201.143
Interest rate options bought
Interest rate options sold
Total
Annexe 41
63.837
44.676
63.837
44.676
49.762
27.550
49.762
27.550
108.513
108.513
77.312
77.312
1.965.414 143.000 17.000 2.125.414 1.952.720 238.735 70.000 17.000 2.278.455
Information on over-the-counter transactions
2008
Contracts
Information on derivative instruments
Nature of contracts
On interest-rates
Notional amount
2.080.738
(including bought conditionnal instruments)
63.837
Ventilation by residual term
(sold conditionnal instruments excluded)
< 1 year 754.682
< 1 year and > 5 years
889.336
> 5 years
436.720
Gross substitution cost
Positive
42.360
Négative
37.376
Potential operations credit risk
10.997
Credit risk of contracts traded
over-the-counter
Ponderation
Positive gross substitution cost
Positive net substitution cost
Potential credit risk
Credit risk equivalent before guarantees
Securities
Credit risk equivalent after guarantees
On exchange-rates
197.059
196.659
400
5.669
6.032
1.987
Credit institutions
Clients
20%
50%
29.038
9.532
9.259
9.532
7.699
2.035
16.958
11.568
5.639
11.319
11.568
BP
0%
9.697
9.697
3.250
12.947
12.947
Annual Report 2008
Annexe 42
Income from variable-income securities
2008
In thousands of euros at 31 December Dividends received on investment securities Dividends received on Portfolio-activity securities
Dividends received on shareholdings and related holdings 66
Total
Annexe 43
2007
24.054 23.000
24.120
23.000
Net income from trading portfolio
2008
In thousands of euros at 31 December TradingTAP 2007
TotalTradingTAP
Total
Depreciation (5.197) (5.197) Reversal of depreciation 1.106 1.106 Losses on disposals (1.687) (1.687) Income on disposals 12.860 12.860 Other items
(706) 2.645 460 (2.969) 6.833 (575) (706)
3.105
(2.969)
6.833
(575)
Total 5.228
5.688
Annexe 44
7.082
7.082
460
Commission
In thousands of euros at 31 December Expenses
2008
2007
IncomeNetExpenses
IncomeNet
Cash and interbank transactions
(1.875)
352
(1.523)
(1.701)
603
Transactions on payment instruments
(17.278)
21.172
3.894
(16.169)
19.042
Operations with clients
(2.498)
29.814
27.316
(2.604)
30.394
Securities transactions
(61)
701
640
2.132
Foreign-exchange transactions
168
168
150
Off-Balance-Sheet commitments
Financial services provided
(713)
21.321
20.608
(830)
9.722
Consultancy
115
115
143
Total (22.425)
73.643
51.218
(21.304)
62.186
(1,098)
2.873
27.790
2.132
150
8.892
143
40.882
183
Annexe 45
2008
Staff costsl
Salaries and emoluments Pension contributions and related expenses Other welfare contributions Employee share-owning incentive scheme Employee profit sharing Payroll taxes and levies Subtotal of staff costs
(49.170) (8.491) (26.246) (675) (183) (9.945) (94.710)
(52.248)
(8.306)
(25.066)
(3.694)
(4.692)
(9.528)
(103.534)
(4.926)
(65.231)
(70.157)
(4.293)
(55.328)
(59.621)
(164.867)
(163.155)
Other operating expenses
Taxes and dues
Other general operating expenses
Subtotal of other operating expenses
Total
Annexe 46
Pension contributions and related expenses
Gross commitment
2008
Assets in coverNet commitment
Pension rights realised during the period (700) Pension rights acquired during the period 444 Financial expenses 411 Expected gross return on assets 132 Variation in management expenses
Payments made into the fund over the year
Costs on payments
Pension scheme change recorded in the accounts
for the year 76 Actuarial differences recorded for the period 0
Other items 67 (700)
444
411
(132)
Variation recorded in income
298
132
Actuarial differences relating to commitments
(223)
Actuarial difference / return on assets
(122)
Other actuarial differences 166
(223)
122
Variation in actuarial differences not recorded
Other items
(223)
(122)
(671)
(51)
Other variations not recorded in the accounts
(722)
76
67
(101)
(671)
(51)
(722)
Annual Report 2008
Annexe 47
Cost of risk
2008
2007
Depre- ReversalsLosses not RecoveriesNet
Depre- ReversalsLosses not RecoveriesNet
ciation net of covered
on ciation net of covered
on
depre-
by receivables
depre-
by receivables
at 31 December 2008
ciation provisions amortised
ciation provisions amortised
Allocated provisions for losses
Interbank balances o/s
Receivables from clients
(45.245) 13.233 (2.175) 1.415 (32.772) (30.841) 9.581 (1.001) 1.426 (20.835)
Misc. debtors and securities (42.235) (42.235)
(87.480) 13.233 (2.175) 1.415 (75.007) (30.841) 9.581 (1.001) 1.426 (20.835)
Provisions
Off-Balance-Sheet commitments
General provisions
(6.536)
Country-risk provisions
3.528
278
(3.008)
(819)
278
1.606
1.092
787
1.092
3.806
(2.730)
2.698
1.879
(6.536)
Total cost of risk
Of which:
- reversal of depreciation that
has ceased to be applicable
- reversal of provisions
for loss used
Subtotal reversals:
- losses covered by
provisions
Net reversals
Annexe 48
(819)
(94.016) 17.039 (2.175) 1.415 (77.737) (31.660) 12.279 (1.001) 1.426 (18.956)
17.039 12.279
7.462 6.376
24.501 18.655
(7.462) (6.376)
17,039 12,279
Corporate income tax
Corporate income tax shows a credit amounting to €7,621,000.
185
3. Statutory auditors’ reports
Statutory auditors’ reporton the consolidated financialstatementsCrédit Coopératif S.A.
92000 Nanterre
Share capital: e493,718,765.
Year ending on 31 December 2008
In fulfilment of the assignment entrusted to us by your General
Meeting, we present to you below our report on the financial
year ended 31 December 2008 concerning:
• The audit of the annual financial statements of Crédit
Coopératif S.A., as appended to this Report;
• The evidence and arguments substantiating our opinions,
• The special check provided for by law.
The consolidated financial statements were drawn up by your
Board of Directors. It is our duty to give our opinion of these
financial statements, on the basis of our audit.
1 Opinion of the consolidated financial
statements
We carried out our audit in accordance with professional
standards applicable in France; these standards require us to
conduct investigations in order to obtain reasonable assurance
that the consolidated financial statements are free from material
misstatement. An audit consists of checking, on a test basis, or
using other selection methods, the elements substantiating the
amounts and information contained in the consolidated financial
statements. It also consists of assessing the accounting principles
applied and the significant estimates made in order to draw up
the financial statements, as well as evaluating their overall
presentation. We consider that the elements we have collected
are sufficient and appropriate to enable us to form our opinion.
We hereby certify that the financial statements for the year, in
view of the IFRS benchmark document as adopted within the
European Union, are properly drawn up, accurate and give a true
and fair view of the net assets, financial position and net income
of the entity formed by the persons and businesses comprising
the consolidated entity.
2 Evidence substantiating our assessment
The accounting estimations used in drawing up the financial
statements at 31 December 2008 have been made in a
context of uncertainty as to the economic prospects and of
high levels of market volatility. It was in this context that we
proceeded to make our own assessments, to which we would
like to draw your attention, pursuant to the provisions set
out in Article L.823-9 of the French Commercial Code.
• Your group sets aside provisions designed to cover the
credit risks inherent to its activities as described in Note III,
“General principles and methods of valuation”, in the notes
to the consolidated financial statements. Within the
framework of our assessment of the significant estimates
made in drawing up the financial statements, we examined
the scheme of control and supervision put in place by the
group to enable monitoring of credit risks, and we have
evaluated the risks of non-recovery and the levels of the
resulting provisions on an individual and collective basis.
• Your group holds positions in securities and in financial
instruments. Note III “General principles and methods of
valuation” in the notes to the consolidated financial
statements sets out the accounting principles and methods
used for securities and financial instruments, and for the
hedging accounts. We examined the existing
documentation justifying the accounting classifications
adopted and the parameters used to evaluate its positions.
We have also checked that the notes provide appropriate
information in this respect.
Our assessments as given in the foregoing are consistent
with our approach in auditing the consolidated financial
statements as a whole, and therefore contributed to the
forming of our unreserved opinion as expressed in the first
part of this report.
Annual Report 2008
3 Specific check
We also checked the information relating to the group given
in the management report, as provided for by law. The truth,
fairness and consistency with the consolidated financial
statements of the information given in that report call for
no comment on our part.
The statutory auditors
KPMG Audit
Fabrice Odent
Partner
Cyrille Baud
Partner
Jean-François Dermagne
Partner
187
Statutory auditors’ reporton the annual financialstatementsCrédit Coopératif S.A.
92000 Nanterre
Share capital: e493,718,765.
In fulfilment of the assignment entrusted to us by your General
Meeting, we present to you below our report on the financial
year ended 31 December 2008 concerning:
• Audit of the annual financial statements of Crédit Coopératif
S.A., as appended to this Report,
• The evidence and arguments substantiating our opinions,
• The specific checks and disclosures required by law.
The annual financial statements were drawn up by your Board
of Directors. It is our duty to give our opinion of these financial
statements, on the basis of our audit.
1 Opinion on the annual financial
statements
We carried out our audit in accordance with professional
standards applicable in France; these standards require us to
conduct investigations in order to obtain reasonable assurance
that the annual financial statements are free from material
misstatement. An audit consists of checking, on a test basis, or
using other selection methods, the elements substantiating the
amounts and information contained in the annual financial
statements. It also consists of assessing the accounting
principles applied and the significant estimates made in order
to draw up the financial statements, as well as evaluating their
overall presentation. We consider that the elements we have
collected are sufficient and appropriate to enable us to form
our opinion.
We hereby certify that the annual financial statements, viewed
in the light of French accounting principles, are properly drawn
up, accurate and give a true and fair view of the net income
from operations for the financial year ended and of the
financial position and net assets of the company at the end of
the particular financial year.
and within the framework of our assessment of the significant
estimates made in drawing up the financial statements, we
examined the procedures put in place by the company for the
identification and evaluation of the risks of non-recovery and
for covering such risks by provisions.
• As indicated in note I to the financial statements, your company
records and values its financial instruments by applying valid
accounting principles. We assessed the approaches adopted by
your company for valuing these financial instruments on the
basis of the information currently available and conducted tests
to assess the application of these methods on a test basis.
Our assessments as given in the foregoing are consistent with our
approach in auditing the annual financial statements as a whole,
and therefore contributed to forming our unreserved opinion as
expressed in the first part of this report.
3 Special checks and information
We have also carried out the special checks required by law.
We have no comments to make regarding:
• The truth and fairness and consistency with the annual
financial statements of information given in the management
report from the Board of Directors and in the documents
sent to shareholders regarding the financial position and the
annual financial statements,
• The truth and fairness of information given in the
management report regarding remuneration and benefits
awarded to the company’s officers in question as well as to
commitments made in their favour at the time of taking up,
leaving or changing their positions or subsequently.
In application of the law, we have made sure that the various
items of information concerning the holdings and controlling
interests acquired and the identity of the persons and entities
holding the capital and the voting rights, have been
communicated to you in the management report.
The statutory auditors
KPMG Audit
Fabrice Odent
Partner
2 Evidence substantiating our assessment
The accounting estimations used in drawing up the financial
statements at 31 December 2008 have been made in a context of
uncertainty as to the economic prospects and of high levels of
market volatility. It was in this context that we proceeded to make
our own assessments, to which we would like to draw your
attention, pursuant to the provisions set out in Article L.823-9 of
the French Commercial Code.
• As indicated in note I to the financial statements, your company
sets aside provisions designed to cover the credit risks inherent
to its activities. On the basis of the elements currently available,
Cyrille Baud
Partner
Partner
Annual Report 2008
Statutory auditors’special report on regulatedagreements andcommitmentsCrédit Coopératif S.A.
92000 Nanterre
Share capital: 493,718,765 e.
Ladies and Gentlemen,,
In our capacity as the statutory auditors of your company,
we are required to submit to you our report on regulated
agreements and commitments.
Agreements with Banque EDEL S.N.C.
•Nature and object: Assignment of receivables by Crédit
Coopératif S.A.
•Terms: This assignment of receivables is executed for an
amount of four million two hundred and twelve thousand
two hundred and seventy four euros and eighty four cents
(€4,212,274.84), calculated as follows:
- Live loans: €4,318,994.87
- Instalments in arrears at 30/04/2008: €18,312.00
- Doubtful debts at 30/04/2008: €714,302.00
- Provision: - €839,334.13
Agreements approved in previous financial
years which were maintained in being
during the financial year under review
Furthermore, we were not informed of any agreements
approved in earlier financial years, that remained in effect in
the financial year under review.
Agreements and commitments authorised
during the financial year
Pursuant to Article L.225-40 of French Commercial Code, we
have been advised of agreements and commitments which
form the subject of prior authorisation from your Board of
Directors.
Our duties do not include ascertaining the existence of other
possible agreements and commitments but of advising you,
on the basis of information supplied to us, as to the
characteristics and essential terms and conditions of those
agreements and commitments of which we have been
notified, without commenting on their usefulness and
expediency. It is your duty, according to the terms of Article
R.225-31 of French Commercial Code, to assess the
usefulness of entering into these agreements and
commitments for the purpose of approving them.
We have applied the due diligence that we found necessary
in the light of the professional doctrine of the Compagnie
nationale des commissaires aux comptes (French national
society of auditors) concerning this mission. The due
diligence consisted of checking the concordance of the
various items of information given to us with the basic
documents from which they were taken.
KPMG Audit
Fabrice Odent
Partner
SOFIDEEC BAKER TILLY
Cyrille Baud
Partner
Partner
Agreements with BTP Banque S.A.
• Persons concerned:
Mr Jean-Claude Detilleux, Chairman of the Board of Directors of
Crédit Coopératif S.A and the Supervisory Board of BTP Banque S.A.
• Nature and object: Liquidities management agreement
•Terms: This agreement is entered into for a three-year
period, and it can be extended by tacit renewal for
subsequent three-year periods. Crédit Coopératif S.A.
will carry out on behalf of BTP Banque S.A. own-account
transactions on the one hand, and transactions on
behalf of clients on the other hand.
•Date of authorisation: Meeting of the Board of Directors
on 29 August 2008
•Effect: No remuneration was noted for execution of this
agreement
189
Draft resolutions
ORDINARY RESOLUTIONSFIRST RESOLUTION
The General Meeting, having acquainted itself with the
contents of the management report of the Board of Directors,
the report of the Chairman of the Board of Directors and the
Statutory Auditors’ reports, approves as presented the
company financial statements for the year ended 31 December
2008. This meeting approves unreservedly all the operations
carried out during the 2008 financial year, and gives discharge
to the directors for their management of the affairs of the
business for that financial year.
SECOND RESOLUTION
The General Meeting, having acquainted itself with the
management report of the Board of Directors and the Statutory
Auditors’ report, approves as presented the consolidated
financial statements for the year ended on 31 December 2008,
as well as the operations reflected in these financial statements
and described in these reports.
THIRD RESOLUTION
General Meeting sets at 3,6% for the financial year 2008
the rate of interest on the non-voting preferred-interest
shares, termed “C” shares, entitled to a 40% tax rebate as
stated in Article 158-3 2 of the CGI, for the benefit of
individuals only. This interest will be paid on 23 June 2009.
Holders of these shares will have the option of receiving
payment of the interest in C shares or in cash. The whole of
the distributed income provides an entitlement to a 40%
rebate.
FOURTH RESOLUTION
In accordance with Article 9 of the Articles of Association,
and in response to the proposal from the Board of Directors,
the General Meeting sets at 3,6% for the financial year 2008
the rate of interest on the non-voting preferred-interest
shares, termed “B” shares, entitled to a 40% tax rebate as
outlined in Article 158-3 2 of the CGI, for the benefit of
Financial yearA shares
2005
2006
2007
0
€752,587*
0
individuals, sole traders and intuitu personae partnerships
[sociétés de personnes] only. This interest will be paid on 25
June 2009. Holders of these shares will have the option of
receiving payment of the interest in B shares or in cash.
FIFTH RESOLUTION
In accordance with Article 10b of the Articles of Association
and in response to the proposal from the Board of Directors,
the General Meeting sets at 3,6% of their nominal value for
the financial year 2008 the remuneration for cooperative
preference shares. This sum will be paid on 25 June 2009.
SIXTH RESOLUTION
Noting that the results for the financial year reflected net
income of €18,758,919.63, and that the balance sheet
shows a figure carried forward to retained earnings of
€15,171,283.25, the General Meetings resolves that, in
accordance with Article 42 of the Articles of Association,
the distributable profit of €33,930,202.88 will be
appropriated as follows:
- Legal reserve, 15% of the net income (€18, 758, 919.63)
........................................................................................................ €2,813,838.00
- Carried forward to retained earnings: .................€14,061,740.33
- Remuneration of C shares at the rate of 3.6% pro rata
temporis:................................................................................ €4,570,692.00
- Remuneration of B shares at the rate of 3,6% pro rata
temporis:................................................................................. €8,179,157.00
- Remuneration of cooperative preference shares (CCI)
at a rate of 3.6% of their nominal value: ........... €3,554,775.55
- Payment of a cooperative rebate to members,
in proportion to the value of transactions carried out by
each of them withCrédit Coopératif:................. €750,000.00
Pursuant to Article 243 of the CGI, it is stated that the
amount of interest and rebates distributed over the last
three financial years is as follows:
B sharesC sharesCCI
€4,056,873*
€5,713,631*
€6,943,662*
* Interest eligible for a 40% rebate for the benefit of individuals.
€319,366*
€2,971,301*
€3,545,040*
\
\
€2,962,313
Rebate
€450,000
€750,000
€2,500,000
Annual Report 2008
SEVENTH RESOLUTION
The General Meeting, having heard read out the Statutory
Auditors’ special report on agreements falling within
Articles L. 225-38 and following of the Commercial Code,
approves the operations set out therein.
General mutual society of the French national education
system), represented by Mr Jacques HORNEZ, for a term of
six years. This term will expire at the close of the Ordinary
General Meeting in 2015 convened to vote upon the
financial statements of the company’s 2014 financial year.
EIGHTH RESOLUTION
The General Meeting duly notes that the share capital
amounted to €493,718,765.25 at 31 December 2008.
THIRTEENTH RESOLUTION
The General Meeting resolves, in accordance with Article 24
of the Articles of Association, to set the sum of €200,000 as
the overall annual amount of fees paid to directors and
external supervisors. This resolution, applicable to the current
financial year, shall be maintained until resolved otherwise..
NINTH RESOLUTION
The General Meeting resolves, in accordance with Article
14 of the Articles of Association, to renew the term of
office of the Director Mr. Jean-Louis BANCEL for six years,
which will expire at the close of the Ordinary General
Meeting in 2015 convened to vote upon the financial
statements of the company’s 2014 financial year.
TENTH RESOLUTION
14 of the Articles of Association, to renew the appointment
of Director of the Fédération Nationale des Sociétés
Coopératives d’HLM (FNSC D’HLM - national federation of
cooperatives dealing with social housing) for a term of six
years to expire at the close of the Ordinary General Meeting
in 2015 convened to vote upon the financial statements of
the company’s 2014 financial year.
ELEVENTH RESOLUTION
14 of the Articles of Association, to renew the appointment
of Director of the Fédération Nationale des Mutuelles
Interprofessionnelles (FNMI - national federation of interprofessional mutual societies) for a term of six years to
expire at the close of the Ordinary General Meeting in 2015
convened to vote upon the financial statements of the
company’s 2014 financial year.
EXTRAORDINARY RESOLUTIONSFOURTEENTH RESOLUTION
The General Meeting resolves, as a derogation to the
provisions set out in the first paragraph and the second
from last paragraph of clause 16 of the articles of
association, that the term of office of the incumbent
Chairman at the date of the general meeting called to
approve the accounts for the 2008 financial year will
expire, if the Board of Directors so proposes, at the end of
the general meeting to be called in the second half of 2009.
If no such meeting is held, the said term of office will expire
on 31 December 2009.
FIFTEENTH RESOLUTION
The General Meeting confers the fullest powers upon the
bearer of an copy or extract of the minutes of this meeting
for the fulfilment of all formalities of filing and declaration
prescribed by law.
TWELFTH RESOLUTION
14 of the Articles of Association, to appoint as a Director
the Mutuelle Générale de l’Education Nationale (MGEN-
191
Certification by the persons
responsible for the annual
financial report
We declare, to the best of our knowledge, that the financial statements are drawn up in accordance with the applicable accounting
standards and provide a true and fair view of the net assets, financial position and net income of the company and all of the
companies included in the scope of consolidation, and that the management report presents a true and fair picture of changes in
business, the results and the financial position of the company and all of the companies included in the scope of consolidation as
well as a description of the principal risks and uncertainties they are facing.
Chairman
Philippe JEWTOUKOFF
General Manager
Annual Report 2008
Dunkerque
Lille
Amiens
Le Havre
Rouen
Reims
Caen
Metz
Nancy
Quimper
Lorient
Rennes
Le Mans
Angers
Nantes
Strasbourg
Orléans
Tours
Dijon
Besançon
Niort
Poitiers
La Rochelle
Annecy
Limoges
Lyon
Clermont-Ferrand
Grenoble
Brive-la-Gaillarde
Le Puy
Bordeaux
Saint-Étienne
Valence
Sarlat-la-Canéda
Agen
Dax
Toulouse
Bayonne
Pau
Carcassonne
Nîmes
Montpellier
Avignon
Nice
Aix-en-Provence
Marseille Toulon
PARIS ÎLE-DE-FRANCE
Crédit Coopératif Général Délégations
l Crédit Coopératif branche
s BTP Banque branche
Cergy Pontoise
Nanterre
Versailles
Paris
Saint-Denis
Bobigny
Créteil
Massy
Melun
Évry
193
Annual Report 2008
Crédit Coopératif Group branch offices
Alsace 1, quai Kléber 67080 STRASBOURG cedex
4, rue des Tanneurs
BP 917 37009 TOURS cedex
Aquitaine
24, rue Ronsard
BP 707
64007 PAU cedex
Champagne-Ardennes
20 bis, bd de la Paix
BP1364 51063 REIMS cedex
36, allées Marines
BP 305
64103 BAYONNE cedex
Franche-Comté
22, avenue Fontaine-Argent
25043 BESANCON cedex
28, cours du Maréchal Joffre
BP 143 40103 DAX cedex
Haute-Normandie
22, rue Alsace-Lorraine
BP 1114 76175 ROUEN cedex
MERIADECK
rue Marguerite Crauste,
immeuble le Prisme
33074 BORDEAUX cedex
QUINCONCES
3, place des Quinconces
CS 31040
33073 BORDEAUX cedex
58, rue de la République
BP 86 24203 SARLAT LA CANEDA
cedex
14, place Jean Baptiste Durand
BP 269
47007 AGEN cedex
Auvergne
Centre Beaulieu III
33, boulevard Berthelot
63407 CHAMALIERES cedex
35, boulevard Saint Louis 43000 LE PUY EN VELAY
Basse-Normandie
10, place du Maréchal Foch
14052 CAEN cedex 4
Bourgogne
1, avenue Kellermann
BP 27 040 21070 DIJON cedex
Bretagne
10, boulevard Svob
BP 525 56105 LORIENT cedex
6, rue de Falkirk 29196 QUIMPER cedex
3, rue de l’Alma
CS 86407
35064 RENNES cedex
Centre
69, bd Alexandre Martin
BP1601 45006 ORLEANS cedex
Immeuble le Colbert
6 cours du Commandant
Fratacci
76600 LE HAVRE
Ile-de-France
2, place du vieux clocher
91300 MASSY
80, rue de Courcelles
75008 PARIS
60, boulevard de Strasbourg
CS 60019
75479 PARIS CEDEX 10
11, rue de la brasserie Grüber
77000 MELUN
92002 NANTERRE cedex
99, rue de la Tombe Issoire
75014 PARIS
1, rue Carnot 93000 BOBIGNY
4, allée verte
BP 41 93202 SAINT DENIS
5 & 7, rue du Maréchal Foch
BP 432 78004 VERSAILLES cedex
252, boulevard Voltaire
75544 PARIS cedex 11
4, rue Auber 75009 PARIS
86, rue de Courcelles
BP 269
75008 PARIS
2, Mail des cerclades
95031 CERGY PONTOISE cedex
Parc Elysée Evry-Courcouronnes
17-19, rue Michel Ange
BP 53 91002 EVRY cedex
Picardie
5, place Léon Debouverie
BP 90901 80009 AMIENS cedex 01
38-42, av Pierre Brossolette
94048 CRETEIL cedex
Poitou-Charentes
7, place de la Comédie
BP 28520 79025 NIORT cedex
Languedoc-Roussillon
8, boulevard Victor Hugo
BP 71188 34009 MONTPELLIER
cedex 01
49, avenue Jean Jaurès
CS 24004 30915 NIMES cedex 2
8, place Davilla
BP 22
11020 CARCASSONNE cedex
Limousin
7, cours Jourdan
BP 64
87002 LIMOGES cedex
4, rue du Chaudron d’Or
BP 312 86008 POITIERS cedex
27, quai Valin BP175 17006 LA ROCHELLE cedex
Provence Alpes/
Côte-d’Azur/Corse
6, rue Adolphe Guiol
BP 5007 83091TOULON cedex
45, cours Pierre Puget
BP 208 13431 MARSEILLE cedex 06
square docteur François
Chassagnac
BP174 19105 BRIVE LA GAILLARDE
cedex
Immeuble Hemilythe
150, av Georges Pompidou
BP 10325
13617 AIX EN PROVENCE
cedex 1
Lorraine
35 bis, avenue Foch
BP 90172 57005 METZ cedex 01
5, rue Cronstadt
BP 1577 06010 NICE cedex 1
81, rue Saint Georges
BP 10328 54006 NANCY CEDEX
Midi-Pyrénées
6, rue Raymond IV
BP 435 31009 TOULOUSE cedex 6
Nord Pas-de-Calais
2 bis, rue de Tenremonde
BP 565
59023 LILLE cedex
2, avenue Kaarst 59777 EURALILLE Cedex
112, avenue du Prado
BP 266 13269 MARSEILLE cedex 08
1, rue Saint Jean le Vieux
BP 412 84071 AVIGNON cedex 4
RHÔNE-ALPES
3, boulevard des diables bleus
BP 306 38010 GRENOBLE cedex 1
15, boulevard Bancel
BP 135 26001 VALENCE cedex
103, av du Maréchal de Saxe 3 à 5, rue du Président Wilson 69423 LYON cedex 03
BP 1019 59375 DUNKERQUE cedex
12 bis, av de la Libération
BP 535 Pays-de-la-loire
42007 SAINT ETIENNE cedex 1
21, boulevard Carnot
BP 70127 3, Place Marie Curie
49101 ANGERS cedex 02
BP 411
74013 ANNECY cedex
25, avenue François Mitterand
72013 LE MANS cedex 2
1, place Louis Pradel
BP 58 42, boulevard Guist’hau
69201 LYON cedex 01
BP 90215 44002 NANTES cedex 1
Société coopérative anonyme de Banque Populaire à capital variable
R.C.S. Nanterre B 349 974 931 - APE 6419Z
BP 211 – 92002 Nanterre cedex
Tél. : 01 47 24 85 00
Groupe Crédit Coopératif - Annual Report 2008
Réf. ARF 2009 - April 2009 - ByTheWayCreacom
annual report 2008

AnnuAl RepoRt 2008 - Crédit Coopératif

Transcription

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