CM11-CIC - Banque Fédérative du Crédit Mutuel

Banks
France
CM11-CIC
Full Rating Report
Ratings
Key Rating Drivers
CM11-CIC
Long-Term IDR
Short-Term IDR
A+
F1
Viability Rating
Support Rating
Support Rating Floor
a+
1
A
Banque Federative du Credit Mutuel
(BFCM)
Long-Term IDR
Short-Term IDR
A+
F1
Support Rating
Support Rating Floor
1
A
Sovereign Risk
Foreign-Currency Long-Term IDR
Local-Currency Short-Term Rating
AA+
F1+
Outlooks
Stable
Long-Term IDRs
Sovereign Foreign-Currency
Long-Term IDR
Sovereign Local-Currency
Long-Term IDR
Stable
Stable
Standalone Strength Drives IDR: The Long-Term IDR and Viability Rating (VR) of CM11-CIC
are driven by the group's healthy franchise in French retail banking, prudent strategy, low risk
profile, satisfactory funding and liquidity and strong capitalisation. CM11-CIC is not a legal
entity, but Fitch Ratings bases its analysis on consolidated group figures because of solidarity
mechanisms within the group.
Cooperative Banking Group: In Fitch's view, the fact the group has only cooperative
shareholders removes it from excessive market return pressure and contributes to a prudent
strategy, which defines CM11-CIC's culture.
Retail Dominates Business Mix: CM11-CIC is France's third-largest retail bank and has a
healthy domestic retail banking franchise (13.5% market share in lending). Retail banking
(including small subsidiaries in Germany and Spain) consistently represents the bulk of
operating profit, but the group also has a strong franchise in insurance, with products sold
through the branch network providing additional income. Corporate and investment banking
operations are small compared with those of other large French banks.
Low Risk Appetite: CM11-CIC has low-risk underwriting standards. Its business is mainly
concentrated in France with a large portion of low-risk housing loans.
Financial Data
CM11-CIC
31 Dec
13
Total assets (USDm)
Total assets (EURm)
Total equity (EURm)
Operating profit (EURm)
Net income (EURm)
Operating ROAE (%)
Operating ROAA (%)
Fitch core capital (%)
31 Dec
12
703,704 658,697
510,256 499,227
31,997 29,767
3,429
2,891
2,214
1,823
11.1
10.3
0.7
0.6
12.9
11.8
Good Asset Quality: Impaired loans are manageable and well covered by impairment
reserves (68%). Exposure to peripheral European countries is limited. Fitch expects the quality
of CM11-CIC‟s loan book to remain stable in 2014.
Satisfactory Funding and Liquidity: CM11-CIC has significant stable funding sources
(customer deposits, long-term debt and equity), which exceed customer loans and fixed assets.
Its loans/customer deposits ratio is satisfactory (124% at end-2013); the group plans to improve
this ratio (target of 120%) while lengthening the maturity of market funding. High quality liquid
assets (HQLA) and cash roughly cover one year of short-term market funding. However, many
international peers have a higher buffer of HQLA and cash.
Strong Capitalisation: CM11-CIC's Fitch core capital (FCC) ratio of 12.9% is strong and
compares well with those of its French peers. The improvement in this ratio in 2013 came from
higher capital largely owing to earnings retention.
French Cooperative Banks: Peer Review
(July 2014)
Support Extremely Likely: CM11-CIC‟s Support Rating Floor (SRF) and the Support Rating
(SR) reflect our view that support from the French authorities would be extremely likely, if
needed, given the group‟s systemic importance. Fitch expects the probability of support, if
needed, to decline in the next one to two years, as further progress is made in enabling
effective resolution frameworks. A decline in support would have no impact on CM11-CIC's and
Banque Federative du Credit Mutuel‟s (BFCM) IDRs.
Credit Mutuel: Structure, Solidarity
Mechanisms and Rating Rationale
(January 2013)
Rating Sensitivities
Related Research
Analysts
Eric Dupont
+33 1 44 29 91 31
[email protected]
Solena Gloaguen
+44 20 3530 1126
[email protected]
www.fitchratings.com
Weaker Capital and Funding/Liquidity: Any material deterioration of CM11-CIC's capital,
which provides a strong buffer, could lead to downside rating pressure, although this is not
expected. Any weakening of its funding or liquidity position, which is contrary to the current
trend, or any marked deterioration in the risk profile could also put pressure on the VR. An
upgrade of the ratings is not expected given their high level compared to European peers.
12 August 2014
Banks
Operating Environment
Weak Economic Growth Affects Revenue
Figure 1
France Macroeconomic
Forecasts
(%)
GDP growth
Unemployment
rate
2013 2014f 2015f
0.2
0.7
1.2
11.0 11.0 10.7
Source: Fitch
Fitch estimates a low French GDP growth rate for 2014. Unemployment in France is expected
to stabilise, but remain high compared to similarly rated countries. The greatest impact of weak
economic growth in France is on the revenue line as low policy interest rates weigh on margins.
Nevertheless, the drop in rates offered on regulated deposits (to 1% from 1.25% in August
2014) is positive for banks. Funding costs have fallen not only on regulated deposits but on all
savings deposits, as the remuneration of regulated deposits influences the rate set on all
deposits.
In addition, loan demand is weak as French corporates and individuals are trying to reduce
their use of bank loans. However, private sector deleveraging also results in higher savings.
Accordingly, private-sector debt is limited in France (much lower than in Spain, the UK or the
US and only slightly higher than in Germany) and the household savings rate is high (higher
than in Spain, twice as high as in the UK and almost as high as in Germany). Domestic loan
impairment charges remain low as CM11-CIC has prudent underwriting standards, which have
become even tighter during the crisis.
Financial Market Development
The major French banks are large and accordingly banking sector assets are significant (over
4X GDP). Moreover, the sector is concentrated, with the top six banks gathering 90% of
deposits. The major banks do not have any state-ownership, except for La Banque Postale.
The French financial market is highly developed with liquid capital markets. High barriers to
entry exist, as evidenced by all foreign banks‟ failure to enter the market significantly through
internal growth (even HSBC had to buy a large commercial bank to get a small foothold in the
French market). There is a deposit protection scheme (EUR100,000). The central bank is the
lender of last resort.
Regulatory Framework
The current regulator (Autorité de Contrôle Prudential et de Resolution) is largely respected by
banks and does constrain their activities. The major banks, including CM11-CIC will become
subject to supervision by the ECB in 2014, which will lead to a more unified supervision of the
large eurozone banks. Banking legislation is very developed, relevant and enforceable, but is
not always in the banks‟ favour to recover impaired assets. Accounting standards are robust
(IFRS).
Company Profile
CM11-CIC is not a legal entity, but is the name given to a subset of 11 Crédit Mutuel (CM)
federations. Fitch bases its analysis on consolidated group figures because of solidarity
mechanisms in place within CM11-CIC. Information on solidarity mechanisms within CM and
CM11-CIC are provided in the Annex. Details on CM can be found in the Fitch report Credit
Mutuel: Structure, Solidarity Mechanisms and Rating Rationale (see Related Research),
published in January 2013.
CM is one of France‟s three largest banking groups (15% market share in deposits and 17% in
loans), and comprises 18 federations including the 11 that make up CM11-CIC. CM11-CIC
represents around 80% of CM's consolidated assets and equity.
Business Mix Dominated by Retail Banking and Insurance
Solid Retail Franchise: 60% of Operating Profit in 2013
Related Criteria
Global Financial Institutions Rating Criteria
(January 2014)
Banking Structures Backed by Mutual Support
Mechanisms (December 2013)
CM11-CIC
August 2014
CM11-CIC specialises in retail banking, which it defines as including not only domestic retail
banking through a nationwide network of around 4,000 branches, split equally between the
Crédit Industriel et Commercial (CIC) network and that of the 11 federations (CM11), but also
international retail banking and specialised financial services to retail clients (notably consumer
finance). The group has a 13.4% market share in lending and 11.4% of total deposits in
2
Banks
France, with particularly strong market shares in eastern France (eg more than 50% of deposits
and lending in Alsace).
Figure 2
Operating Profit Breakdown
Contribution by business lines (2013)
CIB
12%
Private Private
banking equity
2%
2%
Insurance
24%
Source: CM11-CIC
Retail
banking
60%
The group‟s largest foreign subsidiary is Targobank in Germany (fully-owned, with customer
loans of EUR10.6bn at end-2013, 351 branches and over 3 million clients), which it acquired in
2008 from Citigroup Inc. Targobank is predominantly a consumer finance lender (third-largest
consumer finance company in Germany) and fully funded through customer deposits. CM11CIC has also developed its retail operations in Spain through a joint venture with Banco
Popular Español S.A. (Targobank Spain with 125 branches that belonged to Banco Popular
and around EUR2bn of customer loans).
CM11-CIC‟s largest specialised financial subsidiary is Cofidis, which offers consumer finance in
France and in Europe with around EUR9bn of net loans outstanding. CM11-CIC also has
subsidiaries specialised in leasing, factoring and asset management to individuals, institutional
investors and corporates (employee savings); the group had EUR524bn of assets under
management at end-2013.
Important Insurance Provider Through Branch Network: 24% of Operating Profit in 2013
CM11-CIC is one of France's leading life and non-life insurance companies by selling
insurance products through its branch network. At end-2013, the insurance division managed
EUR68bn of customer savings. Groupe des Assurances du Crédit Mutuel (GACM) acquired
Agrupacio to expand its activities in Spain in 2012, particularly to develop synergies with
Targobank Spain and RACC Seguros.
Corporate and Investment Banking (CIB): 12% of Operating Profit in 2013
CM11-CIC is a small operator in CIB, via CIC. The group provides a full range of financial
services to corporates, larger SMEs and institutional investors through branches in New York,
London, Singapore and Frankfurt. CM-CIC Marchés performs the treasury function for the
group and also performs sales and brokerage activities. It runs a small trading book to ensure
liquidity for client-based transactions.
Private Banking and Private Equity: 4.5% of Operating Profit in 2013
CM11-CIC has private banking operations in France, Switzerland, Luxembourg, Germany and
Asia through a number of subsidiaries. CM-CIC Capital Finance runs a EUR2.5bn private
equity portfolio consisting of around 550 investments, essentially in medium-sized French
companies, which are mainly the existing clients of the bank. This results from the strong
involvement of the group's regional banks in the local economy. There are synergies with
private banking and CIB advisory services.
Management
Corporate Governance
CM11-CIC is a cooperative group controlled by its shareholders, who own “parts sociales”
(cooperative shares) in local banks (1,382 at end-2013). These local banks are regionally
clustered into federations. The principle of the cooperative movement is that each member has
only one vote. The board of each local bank is elected by its members and does not include
independent directors; the organisations have strong social and community-oriented principles
and AGMs tend to be well attended.
CM11-CIC's management is centralised. Management is stable, composed of highly experienced
professionals and has been consistent in achieving financial targets and strategic objectives.
CM11-CIC has only cooperative shareholders, unlike the other two large French cooperative
groups, Crédit Agricole (A/Stable/a) and Groupe BPCE (A/Stable/a), which have publicly listed
vehicles. In Fitch‟s view, CM11-CIC‟s cooperative ownership structure removes it from
excessive market return pressure and contributes to a risk-averse strategy, which defines the
group‟s culture.
CM11-CIC
August 2014
3
Banks
Strategy: Developing Synergies From Core Franchises
The group‟s prudent strategy and risk aversion is demonstrated through selective and limitedsize acquisitions in domestic and neighbouring markets. The group intends to continue
expanding its franchise and earnings through cross selling (insurance products, consumer
loans, remote surveillance products and mobile phones). Accordingly, the group is developing
synergies with its recent acquisitions (notably Targobank). CM11-CIC also seeks to improve
cost efficiencies and targets a cost/income ratio of below 60% by 2015 (62% in 2013).
Risk Appetite: Conservative Approach
Figure 3
Loans Portfolio Geographical Breakdown
End-2013
Rest of the
worldª
Germany
5%
5%
Other EEA
member
States
6%
France
84%
ª USA, Singapore, Tunisia and Morocco
Source: CM11-CIC
Net Exposure to
Peripheral Eurozone
Sovereign Debt
Source: CM11-CIC
Credit risk represents the bulk of risk weighted assets (88% of RWAs). CM11-CIC uses the
advanced internal rating-based approach under Basel II for 73% of its total credit exposures
(notably retail, bank exposures and corporates). Targobank and sovereign/public-sector entities
still use the standardised approach. All CM11-CIC entities share common credit risk
management systems, except for Targobank and Cofidis. However, they operate under strict
supervision from and report to CM11-CIC.
Exposures Largely To France
Exposures are largely to France with 84% of loans to French counterparties. Total exposure to
the public and private sectors in peripheral eurozone countries is limited (EUR10.7bn or 3% of
total credit exposure at end-2013). Government and public sector debt in peripheral eurozone
countries totalled EUR3.9bn essentially to Italy (see figure 4); exposure to the private sector
(EUR6.6bn) was essentially to Spain (EUR4.2bn) and Italy (EUR1bn).
Limited Market Risk
Figure 4
Dec 2013
Greece
Ireland
Portugal
Spain
Italy
Total
Credit Risk Represents 88% of RWAs
(EURbn)
0.0
0.1
0.1
0.3
3.4
3.9
The group‟s exposure to market risk is limited. Market risk represented a low 2% of the group's
total capital adequacy requirements at end-2013. Value-at-risk, stress-test analysis and stop
losses are used to control market risk. CM11-CIC‟s average aggregated value at risk (VaR)
was at a low EUR4m at end-2013. Sensitivity to structural interest rate risk is low and hedged
using derivatives. At end-2013, the group calculated that a 1% rise in interest rates would lead
to a rise in operating revenue of 1.5% in the following year.
Equities in the banking book totalled EUR3.9bn at end-2013, most of which were listed. The
remaining portfolio included a very granular portfolio of EUR1.9bn equity investments in
associates of which a 4.4% stake in Banco Popular Espanol (equity accounted, with a market
value above its book value at end-2013).
Operational Risk
Operational risk accounted for around 10% of total capital adequacy requirements at end-2013.
CM11-CIC has chosen the advanced measurement approach for operational risk under Basel
II, although most foreign operations follow the basic indicator or standardised approaches for
the time being. Integration risk for recently acquired operations is small, as these continue to
operate as in the past, with unchanged business models and management.
Financial Profile
Asset Quality: Solid Customer Lending Dominated by French Housing Loans
Slightly over half of the customer loan book relates to housing loans in France (EUR146bn at
end-2013). This portfolio, which has historically had minimal losses, is not a concern. The
impaired loans ratio was low and stable (1.6% at end-2013). Underwriting is primarily based on
the borrower‟s salary (monthly repayments are usually capped at 30%) and not according to
the value of the property. Therefore, the largest risk to the group is a rise in unemployment, but
this is mitigated by the fairly generous social protection in France compared with other
countries, and the overall low level of household indebtedness. More than half of the housing
loan book is secured by a first-lien mortgage and the rest is mainly guaranteed by third-party
CM11-CIC
August 2014
4
Banks
insurance such as Credit Logement or the group‟s internal insurance arm Caution Mutuelle de
l‟Habitat (CMH).
Figure 5
Resilient Consumer Finance Portfolio
Customer Loan Book by
Type
The consumer finance loan portfolio represented 10% of total loans at end-2013 and is largely
with clients in France (50%) and Germany through Targobank (around 30%). The remaining
loans were essentially to clients in Portugal and Spain. The impaired loan ratio was at a high
16% at end-2013, but well covered by loan loss reserves (82%). Impaired loans rose in 2013
owing to the inclusion of fully reserved impaired loans at Targobank, which according to
German accounting practices can be written off after five years. Accordingly, the coverage ratio
also increased. The bank was previously unaware of this practice at its German subsidiary.
As of end-2013
Short term
business
credits
10%
Others
6%
Consumer
loans
11%
Home
loans
52%
Equipment &
leases
21%
Source: CM11-CIC
Figure 6
Sectors at risk
Dec 13
Real estate
Shipping
LBO
NPLs (%)
6.0
8.3
9.1
Source: CM11-CIC/Fitch
Coverage
(%)
53.1
16.7
28.9
Satisfactory Quality of Corporate Portfolio
SMEs and corporates do not present excessive industry concentration. The 20 largest on- and
off-balance-sheet credit exposures represented around 85% of FCC at end-2013, which is
acceptable. All these large exposures were performing. Impaired loans represented 5% of the
SMEs and corporate portfolios at end-2013 (stable yoy) and were adequately covered (60.6%).
The agency does not expect any particular deterioration for 2014. Fitch considers riskier
exposures as limited and credit risk to be manageable (see figure 6). Riskier identified sectors
were to leveraged buyouts (LBOs; 1.3% of total loans), real estate (0.8%) and shipping (0.3%).
Exposures to banks were to highly-rated counterparties (76% rated above „A‟ on CM11-CIC‟s
internal rating scale), performing extremely well with a level of impaired loans being
insignificant at end-2013.
Impaired Loans
Overall, asset-quality indicators were good at end-2013 (4.6% impaired loans ratio, 66.7%
coverage ratio and 13.5% unreserved impaired loans to equity ratio) and are in line with those
of domestic peers. Fitch does not expect any significant deterioration of the loan portfolio given
strict underwriting standards and economic recovery. The level of impaired loans is inflated by
the fact that in France banks do not write them off before they have been fully resolved, as
happens in other countries.
Highly Rated Securities Portfolio
The securities portfolio (EUR46.3bn at end-2013), mainly classified as available for sale
securities, consist largely of fixed-income securities (EUR42.3bn at end-2013). At end-2013,
this portfolio was largely rated investment grade (96%) with a large majority (67%) rated in the
'AAA‟/„AA+' range. The largest part of the sub-investment grade portfolio (EUR1.5bn) consisted
of US RMBS in run-off.
Earnings and Profitability
Satisfactory Earnings Through the Cycle
The group continues to deliver satisfactory performance supported by its retail banking and
insurance franchises although generating high returns has never been CM11-CIC's primary
focus because of its cooperative ownership. Nevertheless, its ability to generate revenue
through diversified activities combined with a low-risk business mix is a strength. The group's
operating returns are better than those of its most direct competitors (the two other large
French cooperative groups, Crédit Agricole and Groupe BPCE). The fact that CM11-CIC‟s
operating ROE is higher is all the more significant because its capital ratios are also stronger.
Fitch expects CM11-CIC to report satisfactory and resilient profitability in 2014. Lower cost of
deposits should offset revenue pressure from low loan demand and low interest rates. Revenue
generation is also supported by the success of the group‟s bancassurance model in France,
which it is deploying in Germany and Spain. Loan impairment charges should be stable (39 bps
in 2013) given the bank‟s low risk appetite. In addition, additional cost efficiencies are being
realised given the group‟s focus on cost control.
CM11-CIC
August 2014
5
Banks
Earnings Driven by Retail Banking and Insurance
Earnings from retail banking and insurance businesses continue to drive results (84% of the
group‟s operating profit in 2013). CM11-CIC includes its international retail and consumer
finance subsidiaries (Targobank and Cofidis) in retail banking, unlike peers, which report their
foreign and specialised-finance subsidiaries in separate business lines. Operating profit from
retail banking and insurance excluding these subsidiaries account for roughly two-thirds of total
operating profit. Moreover, CM11-CIC generates 88% of its operating profit in France.
Retail banking performed well in 2013 (operating profit +17% yoy) and benefitted from lower
funding costs. The rates paid on most deposits are influenced by those on regulated deposits,
which were lowered to 1.25% from 1.75% in August 2013. In addition, CM11-CIC generates
good commission income (35% of total retail operating income), 30% of which come from
selling insurance products. However, loan impairment charges rose, essentially against SME
loans in anticipation of the ECB‟s asset quality review. CM11-CIC's insurance business also
performed well in 2013 generating relatively stable operating profit.
CM11-CIC's CIB division has been increasingly focused on client-related products and is
therefore rather stable, Operating profit is suffering from declining market activities in line with
lower risk appetite and lower results from fixed income activities.
Figure 7
Divisional Contribution
(EURm)
Retail banking
Insurance
CIB
Private banking
Private equity
Corporate centreª
Total
Operating income
FY13
FY12
9,311
8,782
1,440
1,412
827
927
444
463
119
100
-164
-223
11,977
11,462
Operating profit
FY13
2,570
1,028
509
108
85
-867
3,433
FY12
2,192
1056
554
106
66
-929
3,039
ª Includes costs of intermediate holdings, operating property and IT, and results on long-term equity stakes
Source: CM11-CIC
Capitalisation and Leverage
Solid Capital Ratios
Fitch views CM11-CIC‟s capital ratios as strong and a positive driver for the rating. CM11-CIC
has the highest capital ratios among large French banks with a FCC ratio of 12.9% at end2013, a fully loaded Basel 3 CET1 ratio of 13% and a leverage ratio of 5.2%.
The increase in FCC in 2013 is largely due to earnings retention. A limited pay-out ratio,
common among cooperative groups, has historically supported strong internal capital
generation and, ultimately, capital ratios. The lack of access to the equity markets to raise
capital is mitigated by the fact that cooperative members are traditional subscribers to equity
instruments placed in the network.
The FCC ratio is lower than the fully loaded CET1 ratio as Fitch deducts the net asset value of
the insurance activities (EUR6.5bn at end-2013) from FCC. In light of the strong regulatory
solvency of the insurance operations, Fitch‟s approach is somewhat conservative especially
given that the capital deduction related to insurance subsidiaries could decrease if CM11-CIC
decided to issue hybrid capital or introduce further leverage in its insurance activities.
Funding and Liquidity
Solid Funding Profile
Stable customer deposits form the bulk of CM11-CIC funding (65% of non-equity funding –
excluding derivatives - at end-2013) and are largely retail (around 85%). Accordingly, CM11CIC‟s loans/customer deposits ratio was satisfactory (124% at end-2013). The group continues
CM11-CIC
August 2014
6
Banks
to make efforts to increase deposits (+6% in 2013). Its goal is to reach a ratio of 120%, without
paying too much for deposits in order to avoid any negative impact on its profitability.
Satisfactory Liquidity Position
Stable funding resources (customer deposits, long-term funding and equity) exceeded stable
assets (loans, fixed assets and investment in associates) by EUR22bn at end-2013 (up from
EUR7bn at end-2012). Accordingly, CM11-CIC is not reliant on potentially volatile short-term
wholesale markets. Stable funding sources have increased owing to client deposit growth and
increasing long-term debt.
The group‟s liquid assets (around EUR76bn) represented roughly 2x the amount of one-year
short-term market funding (EUR38bn) at end-2013. However, they are of lower quality that
those seen with certain international peers, with only around half of the liquidity reserve defined
as high quality liquid assets. A large part of the group‟s other liquid assets are generated
internally through their mortgage covered bond programmes.
Support
France‟s financial flexibility, indicated by its „AA+‟ Long-Term IDR, is strong and this is a
positive factor regarding potential support to French banks. The French banking sector is large
(4x GDP). Nevertheless, there has not been any rapid growth or excessive build-up of higher
risk exposures and banks are in relatively good shape. Therefore, banks should be relatively
less prone to large losses that would require extraordinary state support.
Fitch believes the French authorities‟ willingness to support domestic banks is high. Support for
the banking sector by the French authorities has been clearly demonstrated, for example
during the 2008-2009 banking crisis or most recently when the state supported Dexia and
Credit Immobilier de France. Nevertheless, as a member of the EU, France will be following the
changing regulatory and legal framework at EU level (Bank Recovery and Resolution
Directive). We view the progress towards bank resolution as an increasingly negative factor for
Support Ratings (SRs) and Support Rating Floors (SRFs) in France.
CM11-CIC‟s SR and SRF reflect our view that support from the French authorities would be
extremely likely at present, if needed, due to the group‟s systemic importance. This reflects
CM11-CIC‟s size, significant deposit market shares and the fact it is a core provider of credit
and other key financial services to the French economy.
CM11-CIC's SRs and SRFs would be sensitive to a weakening in France's ability (as measured
by its rating) or willingness to support CM11-CIC. We expect the probability of support to
decline during the next one to two years, as further progress is made in enabling effective
resolution frameworks. We therefore expect to downgrade CM11-CIC‟s SR to '5' and revise its
SRF to 'No Floor'. The timing at this stage is likely to be some point in late 2014 or in 1H15.
CM11-CIC
August 2014
7
Banks
Annex: Group Structure and Solidarity Mechanisms
Figure 8
Structure Diagram
Cooperative
Shareholders
Local Banks
CM11-CIC
CF de CM
BFCM
Subsidiaries
(Credit Industriel et
Commercial Targobank,
Cofidis…)
Source: Fitch
CM11-CIC has cooperative bank status and its organisational structure is presented in Figure
8. It consists of many local banks (Caisses de Crédit Mutuel, regionally clustered in
federations) that operate through branches and own a central body, Caisse Fédérale de Crédit
Mutuel (CF de CM). All local banks are affiliated to CF de CM. CM11-CIC also controls several
key subsidiaries through its main issuing vehicle, BFCM (consolidated equity of EUR17.8bn
and total assets of EUR400bn at end- 2013). CM11-CIC is owned, through the local banks, by
more than 4 million cooperative shareholders.
Solidarity Mechanisms at CM11-CIC Level
The links within CM11-CIC (see the Special Report on CM under Related Research) mean that
the local banks within it have to support each other and CF de CM in case of problems. In
theory a local bank could refuse to provide support, but this is virtually impossible in practice as
it would be excluded from CM11-CIC at CF de CM‟s request, have no operating systems and
not have permission to operate within its region. In addition, as set out in the statutes, the local
bank‟s equity would be transferred to CF de CM. Moreover, there is a federal solidarity fund at
CF de CM. As CF de CM contributes to this fund along with local banks, it can ask for local
banks to contribute their equity if needed. If the fund is insufficient, any timeliness issue would
be resolved by BFCM providing liquidity until the local banks‟ equity is transferred to the fund.
Fitch would also expect CF de CM to support BFCM (and, indirectly, its subsidiaries) if needed,
in its capacity as reference shareholder. As a consequence, Fitch considers CM11-CIC's
EUR32bn of equity to be available to support any entity within CM11-CIC should the need
arise. For example, were CIC to run into difficulties, it would first be supported by BFCM‟s
equity, then by CF de CM‟s equity, and lastly by local banks‟ equity, at the request of CF de
CM.
Solidarity Mechanisms at CM Level
CF de CM is one of the six central bodies within CM, but it can neither rely on support from any
other central body nor be forced to support another central body experiencing problems,
despite the links between the central bodies (also described in the Special Report on CM).
However, experience shows that support has been forthcoming within the group when
necessary through negotiations between the central bodies, as opposed to the more formal and
immediate mechanisms in cooperative groups with a strong cross-support mechanism. If
another central body were to face problems, CM11-CIC would be likely to affiliate to it.
However, management has stated that it would not do this if CM11-CIC‟s financial condition
were weakened as a result.
Figure 9
Peer Group Table
As of end-2013
(%)
Long-Term IDR/Viability Rating
Total equity (EURbn)
Net interest revenue/earning assets (%)
Cost/income (%)
Loan impairment charge/av. loans (%)
Operating ROAA (%)
Operating ROAE (%)
Impaired loans/gross loans
Reserves for impaired loans/impaired loans
Impaired loans less reserves/equity
Fitch core capital ratio
Groupe
BPCE CM11-CIC
A/a
A+/a+
54.6
32.0
1.2
1.4
69.9
62.0
0.3
0.4
0.4
0.7
9.1
11.1
4.1
4.6
52.7
66.8
20.2
13.5
11.1
12.9
CA
A/a
79.6
1.3
62.0
0.5
0.4
10.5
3.8
82.8
6.0
11.8
Rabobank
Group
AA−/aa−
31.5
1.3
96.3
0.6
(0.2)
(6.2)
2.8
32.8
27.2
14.0
OPPohjola
Group
A+/a+
7.7
1.0
61.0
0.1
0.9
12.2
0.8
83.5
1.2
12.0
Source: Fitch
CM11-CIC
August 2014
8
Banks
CM11-CIC
Income Statement
Year End
USDm
Unqualified
1. Interest Income on Loans
2. Other Interest Income
3. Dividend Income
4. Gross Interest and Dividend Income
5. Interest Expense on Customer Deposits
6. Other Interest Expense
7. Total Interest Expense
8. Net Interest Income
9. Net Gains (Losses) on Trading and Derivatives
10. Net Gains (Losses) on Other Securities
11. Net Gains (Losses) on Assets at FV through Income Statement
12. Net Insurance Income
13. Net Fees and Commissions
14. Other Operating Income
15. Total Non-Interest Operating Income
16. Personnel Expenses
17. Other Operating Expenses
18. Total Non-Interest Expenses
19. Equity-accounted Profit/ Loss - Operating
20. Pre-Impairment Operating Profit
21. Loan Impairment Charge
22. Securities and Other Credit Impairment Charges
23. Operating Profit
24. Equity-accounted Profit/ Loss - Non-operating
25. Non-recurring Income
26. Non-recurring Expense
27. Change in Fair Value of Own Debt
28. Other Non-operating Income and Expenses
29. Pre-tax Profit
30. Tax expense
31. Profit/Loss from Discontinued Operations
32. Net Income
33. Change in Value of AFS Investments
34. Revaluation of Fixed Assets
35. Currency Translation Differences
36. Remaining OCI Gains/(losses)
37. Fitch Comprehensive Income
38. Memo: Profit Allocation to Non-controlling Interests
39. Memo: Net Income after Allocation to Non-controlling Interests
40. Memo: Common Dividends Relating to the Period
41. Memo: Preferred Dividends Related to the Period
Exchange rate
CM11-CIC
August 2014
18,273.3
5,057.2
64.8
23,395.4
8,310.6
6,508.1
14,818.6
8,576.7
(504.8)
409.6
259.3
2,843.7
3,911.2
1,021.9
7,941.0
6,061.2
4,187.0
10,248.2
(6.9)
6,262.6
1,489.4
44.1
4,729.0
n.a.
9.7
0.0
n.a.
n.a.
4,738.7
1,685.3
n.a.
3,053.4
540.6
n.a.
(13.8)
139.3
3,719.5
280.0
2,773.4
0.0
n.a.
31 Dec 2013
Year End
EURm
Unqualified
13,250.0
3,667.0
47.0
16,964.0
6,026.0
4,719.0
10,745.0
6,219.0
(366.0)
297.0
188.0
2,062.0
2,836.0
741.0
5,758.0
4,395.0
3,036.0
7,431.0
(5.0)
4,541.0
1,080.0
32.0
3,429.0
n.a.
7.0
0.0
n.a.
n.a.
3,436.0
1,222.0
n.a.
2,214.0
392.0
n.a.
(10.0)
101.0
2,697.0
203.0
2,011.0
0.0
n.a.
USD1 = EUR0.72510
31 Dec 2012
Year End
As % of
EURm
Earning
Audited/Report
not
seen
Earning Assets
Assets
As % of
2.85
0.79
0.01
3.65
1.30
1.01
2.31
1.34
(0.08)
0.06
0.04
0.44
0.61
0.16
1.24
0.95
0.65
1.60
(0.00)
0.98
0.23
0.01
0.74
0.00
0.00
0.74
0.26
0.48
0.08
(0.00)
0.02
0.58
0.04
0.43
0.00
-
13,513.0
5,121.0
76.0
18,710.0
6,611.0
7,089.0
13,700.0
5,010.0
667.0
175.0
231.0
1,994.0
2,626.0
759.0
6,452.0
4,368.0
2,973.0
7,341.0
(149.0)
3,972.0
1,020.0
61.0
2,891.0
n.a.
16.0
27.0
n.a.
n.a.
2,880.0
1,057.0
n.a.
1,823.0
1,476.0
n.a.
2.0
(112.0)
3,189.0
201.0
1,622.0
n.a.
n.a.
2.94
1.12
0.02
4.08
1.44
1.54
2.99
1.09
0.15
0.04
0.05
0.43
0.57
0.17
1.41
0.95
0.65
1.60
(0.03)
0.87
0.22
0.01
0.63
0.00
0.01
0.63
0.23
0.40
0.32
0.00
(0.02)
0.69
0.04
0.35
-
USD1 = EUR0.75790
31 Dec 2011
Year End
As % of
EURm
Earning
Unqualified
Assets
13,760.0
4,200.0
75.0
18,035.0
5,855.0
5,805.0
11,660.0
6,375.0
35.0
(74.0)
(105.0)
1,484.0
2,702.0
649.0
4,691.0
4,007.0
2,925.0
6,932.0
33.0
4,167.0
1,012.0
444.0
2,711.0
n.a.
66.0
9.0
n.a.
n.a.
2,768.0
925.0
n.a.
1,843.0
(766.0)
n.a.
(5.0)
(50.0)
1,022.0
183.0
1,660.0
n.a.
n.a.
3.18
0.97
0.02
4.17
1.35
1.34
2.70
1.47
0.01
(0.02)
(0.02)
0.34
0.62
0.15
1.08
0.93
0.68
1.60
0.01
0.96
0.23
0.10
0.63
0.02
0.00
0.64
0.21
0.43
(0.18)
(0.00)
(0.01)
0.24
0.04
0.38
-
USD1 = EUR0.77290
31 Dec 2010
Year End
As % of
EURm
Earning
Unqualified
Assets
12,300.0
4,476.0
56.0
16,832.0
2,416.0
8,170.0
10,586.0
6,246.0
(159.0)
69.0
234.0
1,442.0
2,759.0
298.0
4,643.0
3,606.0
2,750.0
6,356.0
26.0
4,559.0
1,282.0
23.0
3,254.0
n.a.
16.0
45.0
n.a.
n.a.
3,225.0
884.0
n.a.
2,341.0
(270.0)
n.a.
n.a.
(41.0)
2,030.0
380.0
1,961.0
n.a.
n.a.
3.07
1.12
0.01
4.20
0.60
2.04
2.64
1.56
(0.04)
0.02
0.06
0.36
0.69
0.07
1.16
0.90
0.69
1.59
0.01
1.14
0.32
0.01
0.81
0.00
0.01
0.81
0.22
0.58
(0.07)
(0.01)
0.51
0.09
0.49
-
USD1 = EUR0.74840
9
Banks
CM11-CIC
Balance Sheet
Year End
USDm
31 Dec 2013
Year End
EURm
As % of
Assets
31 Dec 2012
Year End
As % of
EURm
Assets
31 Dec 2011
Year End
As % of
EURm
Assets
31 Dec 2010
Year End
As % of
EURm
Assets
200,860.6
n.a.
n.a.
n.a.
191,132.3
11,984.6
380,008.3
391,992.8
17,954.8
n.a.
145,644.0
n.a.
n.a.
n.a.
138,590.0
8,690.0
275,544.0
284,234.0
13,019.0
n.a.
28.54
27.16
1.70
54.00
55.70
2.55
-
140,748.0
n.a.
n.a.
n.a.
135,772.0
7,392.0
269,128.0
276,520.0
11,433.0
n.a.
28.19
27.20
1.48
53.91
55.39
2.29
-
137,216.0
n.a.
n.a.
n.a.
134,254.0
7,564.0
263,906.0
271,470.0
11,335.0
n.a.
29.29
28.66
1.61
56.33
57.95
2.42
-
115,258.0
n.a.
n.a.
n.a.
121,303.0
7,257.0
229,304.0
236,561.0
10,933.0
n.a.
26.54
27.93
1.67
52.80
54.47
2.52
-
50,799.9
18,185.1
18,270.6
12,727.9
44,522.1
1,017.8
2,642.4
n.a.
97,365.9
31,381.9
n.a.
2,274.2
110,759.9
0.0
641,208.1
36,835.0
13,186.0
13,248.0
9,229.0
32,283.0
738.0
1,916.0
n.a.
70,600.0
22,755.0
n.a.
1,649.0
80,312.0
0.0
464,940.0
7.22
2.58
2.60
1.81
6.33
0.14
0.38
13.84
4.46
0.32
15.74
0.00
91.12
52,296.0
11,714.0
17,295.0
4,738.0
21,833.0
905.0
1,749.0
n.a.
58,234.0
13,589.0
n.a.
1,229.0
78,039.0
n.a.
458,926.0
10.48
2.35
3.46
0.95
4.37
0.18
0.35
11.66
2.72
0.25
15.63
91.93
37,462.0
1,141.0
35,704.0
3,294.0
71,956.0
16,121.0
2,058.0
n.a.
130,274.0
16,779.0
n.a.
909.0
n.a.
n.a.
432,551.0
8.00
0.24
7.62
0.70
15.36
3.44
0.44
27.81
3.58
0.19
92.33
38,371.0
1,742.0
38,708.0
2,656.0
76,529.0
10,733.0
1,481.0
n.a.
131,849.0
16,739.0
n.a.
832.0
n.a.
n.a.
400,356.0
8.84
0.40
8.91
0.61
17.62
2.47
0.34
30.36
3.85
0.19
92.19
27,952.0
2,814.8
n.a.
3,992.6
5,862.6
1,456.4
1,823.2
1,464.6
5.5
19,939.3
703,704.3
20,268.0
2,041.0
n.a.
2,895.0
4,251.0
1,056.0
1,322.0
1,062.0
4.0
14,458.0
510,256.0
3.97
0.40
0.57
0.83
0.21
0.26
0.21
0.00
2.83
100.00
10,411.0
1,940.0
n.a.
2,921.0
4,233.0
1,044.0
1,405.0
1,162.0
1.0
19,124.0
499,227.0
2.09
0.39
0.59
0.85
0.21
0.28
0.23
0.00
3.83
100.00
6,307.0
n.a.
n.a.
2,940.0
4,298.0
1,004.0
1,607.0
1,774.0
n.a.
18,011.0
468,492.0
1.35
0.63
0.92
0.21
0.34
0.38
3.84
100.00
7,217.0
n.a.
n.a.
2,803.0
4,192.0
1,006.0
1,122.0
1,362.0
n.a.
16,204.0
434,262.0
1.66
0.65
0.97
0.23
0.26
0.31
3.73
100.00
101,390.2
129,074.6
85,782.7
316,247.4
25,562.0
1,368.1
68,790.5
411,968.0
66,579.8
5,575.8
n.a.
72,155.6
16,470.8
31,372.2
531,966.6
73,518.0
93,592.0
62,201.0
229,311.0
18,535.0
992.0
49,880.0
298,718.0
48,277.0
4,043.0
n.a.
52,320.0
11,943.0
22,748.0
385,729.0
14.41
18.34
12.19
44.94
3.63
0.19
9.78
58.54
9.46
0.79
10.25
2.34
4.46
75.60
64,520.0
91,836.0
60,147.0
216,503.0
28,572.0
656.0
51,473.0
297,204.0
42,447.0
4,914.0
n.a.
47,361.0
8,400.0
25,928.0
378,893.0
12.92
18.40
12.05
43.37
5.72
0.13
10.31
59.53
8.50
0.98
9.49
1.68
5.19
75.90
60,309.0
81,566.0
58,211.0
200,086.0
34,131.0
2,573.0
48,473.0
285,263.0
38,755.0
5,100.0
n.a.
43,855.0
8,675.0
26,257.0
364,050.0
12.87
17.41
12.43
42.71
7.29
0.55
10.35
60.89
8.27
1.09
9.36
1.85
5.60
77.71
56,192.0
59,436.0
47,839.0
163,467.0
23,842.0
4,052.0
61,563.0
252,924.0
33,471.0
4,855.0
n.a.
38,326.0
7,760.0
29,864.0
328,874.0
12.94
13.69
11.02
37.64
5.49
0.93
14.18
58.24
7.71
1.12
8.83
1.79
6.88
75.73
n.a.
n.a.
2,770.7
799.9
1,295.0
n.a.
n.a.
106,246.0
14,482.1
657,560.3
n.a.
n.a.
2,009.0
580.0
939.0
n.a.
n.a.
77,039.0
10,501.0
476,797.0
0.39
0.11
0.18
15.10
2.06
93.44
n.a.
n.a.
2,002.0
674.0
885.0
n.a.
n.a.
72,712.0
12,833.0
467,999.0
0.40
0.14
0.18
14.56
2.57
93.74
n.a.
n.a.
1,800.0
561.0
842.0
n.a.
n.a.
65,960.0
7,217.0
440,430.0
0.38
0.12
0.18
14.08
1.54
94.01
n.a.
n.a.
1,529.0
528.0
939.0
n.a.
n.a.
66,018.0
10,135.0
408,023.0
0.35
0.12
0.22
15.20
2.33
93.96
2,016.3
n.a.
1,462.0
n.a.
0.29
-
1,461.0
n.a.
0.29
-
1,463.0
n.a.
0.31
-
2,300.0
n.a.
0.53
-
39,789.0
3,359.5
1,259.1
(30.3)
(249.6)
44,127.7
703,704.3
27,674.8
n.a.
28,851.0
2,436.0
913.0
(22.0)
(181.0)
31,997.0
510,256.0
20,067.0
n.a.
5.65
0.48
0.18
(0.00)
(0.04)
6.27
100.00
3.93
-
27,057.0
2,441.0
514.0
(2.0)
(243.0)
29,767.0
499,227.0
18,287.0
n.a.
5.42
0.49
0.10
(0.00)
(0.05)
5.96
100.00
3.66
-
25,207.0
2,382.0
(836.0)
(6.0)
(148.0)
26,599.0
468,492.0
15,873.0
n.a.
5.38
0.51
(0.18)
(0.00)
(0.03)
5.68
100.00
3.39
-
20,794.0
3,431.0
(202.0)
5.0
(89.0)
23,939.0
434,262.0
13,929.0
n.a.
4.79
0.79
(0.05)
0.00
(0.02)
5.51
100.00
3.21
-
Assets
A. Loans
1. Residential Mortgage Loans
2. Other Mortgage Loans
3. Other Consumer/ Retail Loans
4. Corporate & Commercial Loans
5. Other Loans
6. Less: Reserves for Impaired Loans
7. Net Loans
8. Gross Loans
9. Memo: Impaired Loans included above
10. Memo: Loans at Fair Value included above
B. Other Earning Assets
1. Loans and Advances to Banks
2. Reverse Repos and Cash Collateral
3. Trading Securities and at FV through Income
4. Derivatives
5. Available for Sale Securities
6. Held to Maturity Securities
7. Equity Investments in Associates
8. Other Securities
9. Total Securities
10. Memo: Government Securities included Above
11. Memo: Total Securities Pledged
12. Investments in Property
13. Insurance Assets
14. Other Earning Assets
15. Total Earning Assets
C. Non-Earning Assets
1. Cash and Due From Banks
2. Memo: Mandatory Reserves included above
3. Foreclosed Real Estate
4. Fixed Assets
5. Goodwill
6. Other Intangibles
7. Current Tax Assets
8. Deferred Tax Assets
9. Discontinued Operations
10. Other Assets
11. Total Assets
Liabilities and Equity
D. Interest-Bearing Liabilities
1. Customer Deposits - Current
2. Customer Deposits - Savings
3. Customer Deposits - Term
4. Total Customer Deposits
5. Deposits from Banks
6. Repos and Cash Collateral
7. Other Deposits and Short-term Borrowings
8. Total Deposits, Money Market and Short-term Funding
9. Senior Debt Maturing after 1 Year
10. Subordinated Borrowing
11. Other Funding
12. Total Long Term Funding
13. Derivatives
14. Trading Liabilities
15. Total Funding
E. Non-Interest Bearing Liabilities
1. Fair Value Portion of Debt
2. Credit impairment reserves
3. Reserves for Pensions and Other
4. Current Tax Liabilities
5. Deferred Tax Liabilities
6. Other Deferred Liabilities
7. Discontinued Operations
8. Insurance Liabilities
9. Other Liabilities
10. Total Liabilities
F. Hybrid Capital
1. Pref. Shares and Hybrid Capital accounted for as Debt
2. Pref. Shares and Hybrid Capital accounted for as Equity
G. Equity
1. Common Equity
2. Non-controlling Interest
3. Securities Revaluation Reserves
4. Foreign Exchange Revaluation Reserves
5. Fixed Asset Revaluations and Other Accumulated OCI
6. Total Equity
7. Total Liabilities and Equity
8. Memo: Fitch Core Capital
9. Memo: Fitch Eligible Capital
Exchange rate
CM11-CIC
August 2014
USD1 = EUR0.72510
USD1 = EUR0.75790
USD1 = EUR0.77290
USD1 = EUR0.74840
10
Banks
CM11-CIC
Summary Analytics
A. Interest Ratios
1. Interest Income on Loans/ Average Gross Loans
2. Interest Expense on Customer Deposits/ Average Customer Deposits
3. Interest Income/ Average Earning Assets
4. Interest Expense/ Average Interest-bearing Liabilities
5. Net Interest Income/ Average Earning Assets
6. Net Int. Inc Less Loan Impairment Charges/ Av. Earning Assets
7. Net Interest Inc Less Preferred Stock Dividend/ Average Earning Assets
B. Other Operating Profitability Ratios
1. Non-Interest Income/ Gross Revenues
2. Non-Interest Expense/ Gross Revenues
3. Non-Interest Expense/ Average Assets
4. Pre-impairment Op. Profit/ Average Equity
5. Pre-impairment Op. Profit/ Average Total Assets
6. Loans and securities impairment charges/ Pre-impairment Op. Profit
7. Operating Profit/ Average Equity
8. Operating Profit/ Average Total Assets
9. Taxes/ Pre-tax Profit
10. Pre-Impairment Operating Profit / Risk Weighted Assets
11. Operating Profit / Risk Weighted Assets
C. Other Profitability Ratios
1. Net Income/ Average Total Equity
2. Net Income/ Average Total Assets
3. Fitch Comprehensive Income/ Average Total Equity
4. Fitch Comprehensive Income/ Average Total Assets
5. Net Income/ Av. Total Assets plus Av. Managed Securitized Assets
6. Net Income/ Risk Weighted Assets
7. Fitch Comprehensive Income/ Risk Weighted Assets
D. Capitalization
1. Fitch Core Capital/ Risk Weighted Assets
2. Fitch Eligible Capital/ Risk Weighted Assets
3. Tangible Common Equity/ Tangible Assets
4. Tier 1 Regulatory Capital Ratio
5. Total Regulatory Capital Ratio
6. Core Tier 1 Regulatory Capital Ratio
7. Equity/ Total Assets
8. Cash Dividends Paid & Declared/ Net Income
9. Cash Dividend Paid & Declared/ Fitch Comprehensive Income
10. Cash Dividends & Share Repurchase/Net Income
11. Internal Capital Generation
E. Loan Quality
1. Growth of Total Assets
2. Growth of Gross Loans
3. Impaired Loans/ Gross Loans
4. Reserves for Impaired Loans/ Gross Loans
5. Reserves for Impaired Loans/ Impaired Loans
6. Impaired loans less Reserves for Impaired Loans/ Fitch Core Capital
7. Impaired Loans less Reserves for Impaired Loans/ Equity
8. Loan Impairment Charges/ Average Gross Loans
9. Net Charge-offs/ Average Gross Loans
10. Impaired Loans + Foreclosed Assets/ Gross Loans + Foreclosed Assets
F. Funding
1. Loans/ Customer Deposits
2. Interbank Assets/ Interbank Liabilities
3. Customer Deposits/ Total Funding (excluding derivatives)
CM11-CIC
August 2014
31 Dec 2013
Year End
31 Dec 2012
Year End
31 Dec 2011
Year End
31 Dec 2010
Year End
4.73
2.73
3.69
2.84
1.35
1.12
1.35
4.92
3.18
4.19
3.69
1.12
0.89
1.12
5.33
3.17
4.26
3.30
1.50
1.27
1.50
5.33
1.55
4.17
3.14
1.55
1.23
1.55
48.08
62.04
1.48
14.76
0.91
24.49
11.14
0.68
35.56
2.92
2.21
56.29
64.05
1.52
14.08
0.82
27.22
10.25
0.60
36.70
2.56
1.87
42.39
62.64
1.51
16.10
0.91
34.94
10.47
0.59
33.42
2.12
1.38
42.64
58.37
1.45
19.92
1.04
28.62
14.22
0.74
27.41
2.54
1.81
7.19
0.44
8.76
0.54
n.a.
1.42
1.74
6.46
0.38
11.30
0.66
n.a.
1.18
2.06
7.12
0.40
3.95
0.22
n.a.
0.94
0.52
10.23
0.53
8.87
0.46
n.a.
1.30
1.13
12.91
n.a.
5.26
14.60
14.60
n.a.
6.27
0.00
0.00
n.a.
6.92
11.80
n.a.
4.90
14.10
14.10
14.10
5.96
n.a.
n.a.
n.a.
6.12
8.08
n.a.
4.60
11.00
11.00
10.50
5.68
n.a.
n.a.
n.a.
6.93
7.75
n.a.
4.37
10.80
10.80
n.a.
5.51
n.a.
n.a.
n.a.
9.78
2.21
2.79
4.58
3.06
66.75
21.57
13.53
0.39
0.04
4.58
6.56
1.86
4.13
2.67
64.65
22.10
13.58
0.37
n.a.
4.13
7.88
14.76
4.18
2.79
66.73
23.76
14.18
0.39
n.a.
4.18
(0.01)
5.31
4.62
3.07
66.38
26.39
15.36
0.56
0.23
4.62
123.95
198.73
61.35
127.72
183.03
58.44
135.68
109.76
56.30
145.32
160.94
50.91
11
Banks
CM11-CIC
Reference Data
31 Dec 2012
Year End
As % of
EURm
Assets
31 Dec 2011
Year End
As % of
EURm
Assets
31 Dec 2010
Year End
As % of
EURm
Assets
3.38
10.28
113.67
30.46
30.46
n.a.
n.a.
15,123.0
49,502.0
n.a.
n.a.
563,852.0
154,922.3
n.a.
154,922.3
3.03
9.92
112.95
31.03
31.03
n.a.
n.a.
15,942.0
53,733.0
n.a.
n.a.
538,167.0
196,400.0
n.a.
196,400.0
3.40
11.47
114.87
41.92
41.92
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
434,262.0
179,692.0
n.a.
179,692.0
100.00
41.38
41.38
280,285.7
460,315.3
501,314.0
n.a.
378,457.0
27,896.0
30,772.3
221,106.7
54.93
90.21
98.25
74.17
5.47
6.03
43.33
274,769.0
446,528.7
483,706.0
n.a.
371,724.3
26,228.0
28,217.3
208,031.7
55.04
89.44
96.89
74.46
5.25
5.65
41.67
258,358.3
423,655.7
459,160.0
n.a.
353,247.7
23,537.3
25,881.7
184,511.0
55.15
90.43
98.01
75.40
5.02
5.52
39.38
230,833.7
403,784.0
438,678.7
n.a.
336,871.7
19,807.7
22,890.0
156,131.3
53.16
92.98
101.02
77.57
4.56
5.27
35.95
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
-
n.a.
n.a.
n.a.
n.a.
-
n.a.
n.a.
n.a.
n.a.
-
n.a.
n.a.
n.a.
n.a.
-
Debt Securities < 3 Months
Debt Securities 3 - 12 Months
Debt Securities 1 - 5 Years
Debt Securities > 5 Years
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
-
n.a.
n.a.
n.a.
n.a.
-
n.a.
n.a.
n.a.
n.a.
-
n.a.
n.a.
n.a.
n.a.
-
Loans & Advances to Banks < 3 Months
Loans & Advances to Banks 3 - 12 Months
Loans & Advances to Banks 1 - 5 Years
Loans & Advances to Banks > 5 Years
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
-
n.a.
n.a.
n.a.
n.a.
-
n.a.
n.a.
n.a.
n.a.
-
n.a.
n.a.
n.a.
n.a.
-
Liability Maturities:
Retail Deposits < 3 months
Retail Deposits 3 - 12 Months
Retail Deposits 1 - 5 Years
Retail Deposits > 5 Years
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
-
n.a.
n.a.
n.a.
n.a.
-
n.a.
n.a.
n.a.
n.a.
-
n.a.
n.a.
n.a.
n.a.
-
Other Deposits < 3 Months
Other Deposits 3 - 12 Months
Other Deposits 1 - 5 Years
Other Deposits > 5 Years
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
-
n.a.
n.a.
n.a.
n.a.
-
n.a.
n.a.
n.a.
n.a.
-
n.a.
n.a.
n.a.
n.a.
-
Deposits from Banks < 3 Months
Deposits from Banks 3 - 12 Months
Deposits from Banks 1 - 5 Years
Deposits from Banks > 5 Years
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
-
n.a.
n.a.
n.a.
n.a.
-
n.a.
n.a.
n.a.
n.a.
-
n.a.
n.a.
n.a.
n.a.
-
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
5,575.8
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
4,043.0
n.a.
0.79
-
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
20,295.0
n.a.
n.a.
n.a.
n.a.
4,914.0
n.a.
4.07
0.98
-
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
22,952.0
n.a.
n.a.
n.a.
n.a.
5,100.0
n.a.
4.90
1.09
-
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
4,855.0
n.a.
1.12
-
44,127.7
n.a.
n.a.
31,997.0
n.a.
n.a.
6.27
-
29,767.0
n.a.
n.a.
5.96
-
26,599.0
n.a.
n.a.
5.68
-
23,939.0
n.a.
n.a.
5.51
-
44,127.7
31,997.0
6.27
29,767.0
5.96
n.a.
-
n.a.
-
44,127.7
0.0
0.0
5,862.6
1,456.4
169.6
8,964.3
0.0
27,674.8
n.a.
0.0
n.a.
31,997.0
0.0
0.0
4,251.0
1,056.0
123.0
6,500.0
0.0
20,067.0
n.a.
0.0
n.a.
6.27
0.00
0.00
0.83
0.21
0.02
1.27
0.00
3.93
0.00
-
29,767.0
0.0
0.0
4,233.0
1,044.0
63.0
6,140.0
0.0
18,287.0
n.a.
0.0
n.a.
5.96
0.00
0.00
0.85
0.21
0.01
1.23
0.00
3.66
0.00
-
26,599.0
0.0
0.0
4,298.0
1,004.0
123.0
5,301.0
0.0
15,873.0
n.a.
0.0
n.a.
5.68
0.00
0.00
0.92
0.21
0.03
1.13
0.00
3.39
0.00
-
23,939.0
0.0
0.0
4,192.0
1,006.0
244.0
4,568.0
0.0
13,929.0
n.a.
0.0
n.a.
5.51
0.00
0.00
0.97
0.23
0.06
1.05
0.00
3.21
0.00
-
A. Off-Balance Sheet Items
1. Managed Securitized Assets Reported Off-Balance Sheet
2. Other off-balance sheet exposure to securitizations
3. Guarantees
4. Acceptances and documentary credits reported off-balance sheet
5. Committed Credit Lines
6. Other Contingent Liabilities
7. Total Business Volume
8. Memo: Risk Weighted Assets
9. Fitch Adjustments to Risk Weighted Assets
10. Fitch Adjusted Risk Weighted Assets
B. Average Balance Sheet
Average Loans
Average Earning Assets
Average Assets
Average Managed Securitized Assets (OBS)
Average Interest-Bearing Liabilities
Average Common equity
Average Equity
Average Customer Deposits
Year End
USDm
31 Dec 2013
Year End
EURm
As % of
Assets
n.a.
n.a.
23,806.4
72,358.3
n.a.
n.a.
799,869.0
214,367.5
n.a.
214,367.5
n.a.
n.a.
17,262.0
52,467.0
n.a.
n.a.
579,985.0
155,437.9
n.a.
155,437.9
386,547.6
634,830.1
691,372.2
n.a.
521,937.7
38,471.9
42,438.7
304,932.7
C. Maturities
Asset Maturities:
Loans & Advances < 3 months
Loans & Advances 3 - 12 Months
Loans and Advances 1 - 5 Years
Loans & Advances > 5 years
Senior Debt Maturing < 3 months
Senior Debt Maturing 3-12 Months
Senior Debt Maturing 1- 5 Years
Senior Debt Maturing > 5 Years
Total Senior Debt on Balance Sheet
Fair Value Portion of Senior Debt
Covered Bonds
Subordinated Debt Maturing < 3 months
Subordinated Debt Maturing 3-12 Months
Subordinated Debt Maturing 1- 5 Year
Subordinated Debt Maturing > 5 Years
Total Subordinated Debt on Balance Sheet
Fair Value Portion of Subordinated Debt
D. Equity Reconciliation
1. Equity
2. Add: Pref. Shares and Hybrid Capital accounted for as Equity
3. Add: Other Adjustments
4. Published Equity
E. Fitch Eligible Capital Reconciliation
1. Total Equity as reported (including non-controlling interests)
2. Fair value effect incl in own debt/borrowings at fv on the B/S- CC only
3. Non-loss-absorbing non-controlling interests
4. Goodwill
5. Other intangibles
6. Deferred tax assets deduction
7. Net asset value of insurance subsidiaries
8. First loss tranches of off-balance sheet securitizations
9. Fitch Core Capital
10. Eligible weighted Hybrid capital
11. Government held Hybrid Capital
12. Fitch Eligible Capital
Exchange Rate
CM11-CIC
August 2014
USD1 = EUR0.72510
USD1 = EUR0.75790
USD1 = EUR0.77290
USD1 = EUR0.74840
12
Banks
The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has
been compensated for the provision of the ratings.
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CM11-CIC
August 2014
13