5 - Banque Courtois

Transcription

5 - Banque Courtois

Update to the 2015
Registration
Document
(including the June 30, 2016
interim financial report)
2
Crédit du Nord Group - Update to the 2015 Registration Document
CONTENTS
1
2
3
Person responsible for the Registration Document __________4
Statutory Auditors ___________________________________5
Corporate Governance ________________________________6
1. Corporate Governance as at June 30, 2016 ......................................................................6
2. General Meeting of Shareholders of May 19, 2016 ..............................................................7
3. Risk Committee ...................................................................................................................8
4
5
Group structure _____________________________________9
Consolidated financial statements as at June 30, 2016 ______ 11
1. Key figures as at June 30, 2016 ........................................................................................11
2. Management Report ..........................................................................................................13
Consolidated balance sheet...............................................................................................26
Consolidated income statement ........................................................................................28
Statement of net income and gains and losses booked directly to equity ..........................29
Change in shareholders’ equity..........................................................................................30
Statement of cash flows ....................................................................................................32
3. Consolidated financial statements......................................................................................26
4. Notes to the consolidated financial statements ..................................................................33
5. Statutory auditors’ review report on the half-yearly financial statements ............................55
6
7
Capital adequacy ratio Disclosures under Pillar 3 __________ 56
Cross Reference tables ______________________________ 58
1. Updated cross reference table ..........................................................................................58
2. Cross Reference table for the Interim Financial Report .....................................................61
3
1
Person responsible for
the Registration Document
1. Person responsible for the registration document:
Philippe AYMERICH, Chief Executive Officer of Crédit du Nord.
2. Certification by the person responsible for the registration document:
I hereby certify, having taken all reasonable measures to this end, that to the best of my knowledge, the information
contained in this updated 2015 Registration Document is true and that there are no omissions that could impair its
meaning.
I certify that to the best of my knowledge, the condensed consolidated interim financial statements were drawn up in
accordance with applicable accounting standards and present fairly, in all material respects, the financial position and
results of the parent company and of the entire Group as constituted by the consolidated companies, and that the
Interim Management Report included in the sections of the present update, listed in the cross-reference table in section
7 accurately reflects the major events that took place over the first six months of the financial year, their impact on the
accounts, the key transactions between related parties, as well as a description of the main risks and uncertainties for
the remaining six months of the financial year.
I received a letter of completion from the statutory auditors in which they state that they verified the information in respect
of the financial position and accounts presented in this update and that they read through the entire 2015 Registration
Document and this update (A-01).
The historic financial information presented in the 2015 Registration Document was addressed in the Statutory Auditors’
reports, appearing on pages 137 to 138 and 202 to 204 of the 2015 Registration Document, in addition to financial
information included in reference to fiscal years 2013 and 2014, respectively on pages 133 to 134 and 191 to 192 of the
2013 Registration Document and on pages 139 to 140 and 202 to 203 of the 2014 Registration Document.
The Statutory Auditor’s reports referring to the 2013, 2014 and 2015 annual consolidated financial statements contain
one observation.
Paris, August 26, 2016
Chief Executive Officer,
Philippe AYMERICH
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2
Statutory Auditors
ERNST & YOUNG et Autres
DELOITTE & ASSOCIES
Represented by Vincent ROTY
Represented by José-Luis GARCIA
Adress: 1/2, place des Saisons
92 400 Courbevoie - Paris-La Défense 1
Address : 185, avenue Charles de Gaulle
92 200 Neuilly-sur-Seine
Date appointed: May 4, 2000
Date appointed: May 4, 2000
Date of last reappointment:
May 11, 2012 for six fiscal years
Date of last reappointment:
May 11, 2012 for six fiscal years
Expiry of this mandate:
at the end of the Ordinary General Shareholders’
Meeting convened to approve the financial statements
for the fiscal year ending December 31, 2017.
Expiry of this mandate:
at the end of the Ordinary General Shareholders’
Meeting convened to approve the financial statements
for the fiscal year ending December 31, 2017.
Alternate statutory auditors: Société PICARLE et Associés
Represented by Marc CHARLES
Alternate statutory auditors: Société BEAS
Represented by Mireille BERTHELOT
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3
Corporate Governance
1. Corporate Governance as at June 30, 2016
Board of Directors
Date of first appointment (1)
Term of office expires at the
Shareholders' Meeting in May (4)
Chairman of the Board of Directors
Bernardo SANCHEZ INCERA
May 28, 2014 (Director)
2018
October 31, 2014 (Chairman)
Director
Didier ALIX
Philippe AYMERICH (2)
Sophie-Ségolène BENHAMOU
Véronique CHAUFFERT-YVART
Thierry DIGOUTTE (3)
Bruno FLICHY
Anne MARION-BOUCHACOURT
Mehdi MADJI (3)
Thierry MULLIEZ
Anne PERRIN
Annie PRIGENT (3)
Jean-François SAMMARCELLI
Patrick SUET
January 7, 2010
January 11, 2012
May 28, 2014
May 19, 2016
July 26, 2013
April 28, 1997
May 16, 2013
November 13, 2015
May 6, 2011
May 19, 2016
December 4, 2012
January 1, 2010
May 3, 2001
2020
2019
2018
2020
2018
2019
2017
2018
2019
2020
2018
2017
2019
(1) Term of office: Four years (with the exception of employee representatives, whose term of office is three years).
(2) Chief Executive Officer.
(3) Employee representative.
(4) With the exception of employee representatives, who are elected.
The Board of Directors has met twice since the start of 2016 to discuss changes in the Board; examine the budget;
annual and interim financial statements; and analyse and discuss important strategic decisions concerning commercial,
organisational and investment policies. The Board of Directors of Crédit du Nord met on July 28, 2016 to review the
condensed consolidated interim financial statements.
The General Meeting of Shareholders was held on May 19, 2016.
Executive Committee
Philippe AYMERICH, Chief Executive Officer,
Philippe AMESTOY, Deputy Chief Executive Officer
Yves BLAVET, Head of Group Resources,
Philippe CALMELS, Head of Human Resources,
Stéphane LABAT SAINT VINCENT, Corporate Secretary,
Clara LEVY-BAROUCH, Chief Financial Officer,
François ORAIN, Head of Business Customers,
Pierre SOUVRAS, Head of the Risk Division,
Eric l’HOTE, Head of Communications (attends Executive Committee).
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3
2. General Meeting of Shareholders of May 19, 2016
The shareholders of Crédit du Nord, a public limited company (société anonyme) with share capital of €890,263,248
divided into 111,282,906 shares each with a par value of €8, met at the Ordinary Shareholders’ Meeting
on May 19, 2016 held at the registered office located at 59 Boulevard Haussmann in the 8th arrondissement of Paris.
All the shareholders were in attendance or were represented, totalling 111,282,906 shares. As the legally required
quorum for holding an Ordinary General Shareholders’ Meeting had been met, the duly convened Meeting took place.
All the resolutions submitted by the Board of Directors were adopted:
• The 2015 consolidated and individual financial statements were approved.
• Didier ALIX was reappointed for a four-year term;
• two independent directors were appointed: Véronique CHAUFFERT-YVART and Anne PERRIN.
In addition, Séverin CABANNES, whose term of office expired at the end of the Shareholders’ Meeting on May 19, was
not reappointed.
Resolutions put to a vote:
10 resolutions within the authority of the Ordinary General Shareholders’ Meeting
1.
Approval of consolidated financial statements,
2.
Approval of individual financial statements and discharge of Directors,
3.
Distribution of earnings,
4.
Approval of the regulated agreements addressed by Articles L.225-38 et seq. of the French Commercial Code,
5.
Consultative opinion on the compensation paid in 2015 to the persons referred to in Article L. 511-71 of the
French Monetary and Financial Code,
6.
Reappointment of a Director,
7. and 8. Appointment of two directors
9.
Adjustment of the budget for attendance fees,
10.
Powers.
With the appointment of two independent directors at the last shareholders’ meeting, Crédit du Nord now has five women
on its board, including one employee representative, out of a total of 14 members.
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3
Comité des risques
3. Risk Committee
Crédit du Nord’s Risk Committee has three members:
• Didier ALIX, Chairman,
• Sophie-Ségolène BENHAMOU and,
• Patrick SUET.
The Risk Committee meets twice a year. In the first half of 2016, the Committee met on April 7. Four items on the agenda
were examined and discussed at the meeting:
1- Consideration of the risks posed by the pricing policy
2- Summary of the work performed by Periodic Control
3- Review of counterparty and operational risks
4- Relations with the supervisory authorities
The next Committee meeting is scheduled for September 28, 2016.
8
4
Group structure
The diagram below shows the links between the main Crédit du Nord Group entities. Direct shareholdings are listed as
well as the overall percentage of capital directly or indirectly held by the Group.
CREDIT DU NORD
100%
100%
99.99%
100%
BANQUE
COURTOIS
SOCIETE
MARSEILLAISE
DE CREDIT
BANQUE
RHONE-ALPES
BANQUE
LAYDERNIER
99.87%
100%
100%
KOLB
INVESTISSEMENT
BANQUE
KOLB
BANQUE
NUGER
BANQUE
TARNEAUD
100%
50%
35%
100%
NORBAIL
IMMOBILIER
ANTARIUS
BANQUE
POUYANNE
SDB
GILBERT DUPONT
78.44%
100%
21.43%
99.80%
100%
100%
100%
100%
ETOILE ID
STAR LEASE
NORIMMO
NORBAIL
SOFERGIE
0.20%
99.96%
100%
S.F.A.G.
0.04%
100%
100%
CREDINORD
CIDIZE
PARTIRA
9
10
5
Consolidated financial
statements as at June 30, 2016
1. Key figures as at June 30, 2016
Consolidated Group data
Balance sheet
30/06/2016
IAS/IFRS
31/12/2015
IAS/IFRS
% change
2016/2015
IAS/IFRS
Customer deposits
40,039.2
36,871.9
+8.6
Customer loans
38,976.0
38,064.4
+2.4
(in €m)
Shareholders’ equity (incl. income for the current period)
2,920.4
2,943.0
-0.8
Doubtful loans (gross)
2,738.4
2,739.7
-0.0
-1,426.7
-1,420.2
+0.5
TOTAL BALANCE SHEET
62,295.7
59,251.0
+5.1
ASSETS UNDER MANAGEMENT (OFF-BALANCE SHEET)
26,316.5
26,203.7
+0.4
30/06/2016
30/06/2015
% change
2016/2015
1,098.7
982.8
+11.8
Gross operating income
492.6
378.0
+30.3
Operating income before corporation tax
446.1
308.6
+44.6
Consolidated net income
327.8
197.4
+66.1
Impairments of individually impaired loans
Income Statement
(in €m)
Net banking income
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5
Consolidated financial statements as at June 30, 2016
Key figures as at June 30, 2016
Ratios
(as a %)
Cost of risk/Outstanding loans
Common Equity Tier 1 Ratio (fully loaded Basel 3 CET 1)
Fully loaded Basel 3 solvency ratio
30/06/2016
30/06/2015
0.28%
0.43%
9.3%
9.1%
11.7%
11.9%
30/06/2016
31/12/2015
Ratings
Standard and Poor’s
Fitch
CT
A-1
A-1
LT
A
A
CT
F1
F1
LT
A
A
bbb +
bbb +
(1)
Intrinsic
(1) The intrinsic rating is Crédit du Nord Group’s individual rating as determined by the rating agency, i.e. separate from Societe Generale Group.
12
Management Report
5
2. Management Report
First-Half 2016
Sluggish global growth, undermined
by rising political risks in developed
countries
After a turbulent start to the year, financial markets and
commodities have benefited from a lull between March
and early June. The price of oil reversed some of its slide
in late 2015. During the period, the global equity markets
have generally stabilised. Against this backdrop, the
global economic environment remains difficult, rendered
even more vulnerable by major political elections due to
occur in the short and medium term in the United States,
Italy, France, and so on.
In the United States, the state of affairs at the start of
the year presented sharp contrasts, with underwhelming
figures for consumption and investment levels dropping.
The resurgence in growth over the second quarter could
open the door to another key interest rate hike in the
months to come. As for the emerging economies, the
climate remained gloomy overall since the year began.
The decline in commodity prices significantly impacted
some countries such as Russia or Brazil. These countries
fell into recession with a spike in inflation exacerbated by
the depreciation of their currencies.
In the eurozone, activity remained stable in the first half
of the year. Faced with risks to growth and inflation, the
ECB once again stepped up its monetary easing in March:
the expansion of its asset purchase (QE - Quantitative
Easing) programme, which is now open to corporate
bonds, further cuts to its key interest rates (including a
deposit facility rate set at -0.40%), and a new programme
(TLTRO) to provide long-term financing for the economy
through bank credit. Furthermore, the UK’s future exit from
the European Union clearly heightened the uncertainty
that already posed a persistent threat to the European
economy. Although the German economy continued to
move in a positive direction and remained a driving force
for Europe, due to strong consumption and record-low
unemployment, the Spanish and Italian economies were
still highly fragile and their recoveries uncertain.
In France, growth was shaky but demonstrated a slightly
more positive trend (and prospects) in the first half.
Household consumption increased early in the year,
sustained by growing purchasing power and zero inflation.
Business investment showed some signs of improvement
in a context of low interest rates and tax incentives
intended to boost demand. However, major vulnerabilities
remain, particularly a still-high unemployment rate. The
recent turnaround observed in the employment market
still needs to be consolidated.
Even in challenging circumstances, Crédit
du Nord Group delivered solid sales activity
and resilient financial performance
Crédit du Nord posted significantly higher earnings for
the first six months of 2016, boosted by a gain earned
by tendering its VISA Europe securities to the VISA Inc.
offering (€110.4 million). As a result, consolidated NBI rose
+11.8% to €1,098.7 million at June 30, 2016. Operating
expenses remain under control at -€606.1 million (+0.2%).
Meanwhile, the cost of risk decreased significantly to
-€62.4m, confirming a positive trend for the Group’s
risk profile. Operating income improved by +46.0% to
€430.2 million, bringing Group consolidated net income
up by +66.1% to €327.8 million.
These positive results bring Crédit du Nord Group’s ROE
to 22.4%, for a fully loaded Basel 3 Common Equity Tier
1 ratio of 9.3% at June 30, 2016.
The Group’s NBI fell by -2.1% over the first half after
restatement for the gain on the VISA transaction, PEL/
CEL loss allowances and non-economic items (fair value
measurement of financial liabilities, valuation of derivative
products - Credit Value Adjustment [CVA] and Debit Value
Adjustment [DVA]).
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5
Management Report
Restated for these items, the net interest margin fell
by -6.0%, despite a substantial increase in deposit
volumes and solid levels of loan origination in all of the
Group’s markets. The interest margin was held back by
a persistent low-interest rate environment that weighed
down operating margins.
Net fee income gained +3.7%, buoyed by an increase in
service fees (+4.9%). This trend was driven by substantial
customer acquisition and a sustained effort to increase
the number of products sold to customers and expand
the product range. Variable insurance commission
inflows during the first half were also a contributing factor.
Financial fee income was stable over the six-month
period, reflecting a difficult market environment despite
robust sales for the Group’s growth drivers.
Crédit du Nord posted strong performance
for its growth drivers
Financial savings maintained its momentum over the
first half of 2016 (particularly with a +10.7% increase in
life insurance inflows).
In a tougher financial market environment, Group advisors
continued their efforts to promote Financial Savings
with our target customer base of high-end and wealth
management clients. Nearly 22,000 Antarius Sélection
and Antarius Duo life insurance policies were sold.
“Gestion Initiale” production benefited from extraordinary
sales, with 4,200 contracts signed. This option, which
was launched in 2015, assists high-end and wealth
management customers with managing their assets.
The Private Banking business continued to expand:
• with more than 3,300 clients at end-June 2016, up
+17% year-on-year, and net inflows of €522 million,
up by +132%;
• NBI was up +26% compared to June 30, 2015.
The Forex and Fixed Income business was down
slightly (-4% NBI) compared to 2015, which had been an
extraordinary year.
As for insurance product distribution, the first half
of 2016 was a period of robust activity. The launch of
14
Accidents de la Vie personal injury insurance at the start
of the year was a resounding success with nearly 12,000
policies sold in six months. After two successful years,
the Multi Risk Housing product continued to be driven
by real sales momentum (nearly 15,000 policies sold).
Finally, personal protection, casualty and bank insurance
policies accounted for a total of 66,000 policies sold in
the first half.
Crédit du Nord is ramping up its digitisation
and digital transformation projects, aimed
at improving sales efficiency and customer
satisfaction
Crédit du Nord continued its efforts to enhance the
workstations at its branches by incorporating new working
situations and new products and services (launch of a new
range of Accidents de la Vie personal injury insurance
products and Etoile Etudes student loans).
Crédit du Nord has been a pioneer in terms of providing
its advisors with mobile solutions, equipping all of its
employees with tablet computers. It also continued to
expand the tasks that can be carried out remotely, leading
to constant improvement in the speed and simplicity
with which we respond to the needs of our clients and
prospects:
• using their tablets, professional customer advisors can
not only present the various financial products and
banking services, run simulations, and access video
conferencing solutions, but they can also, as of the
first half of this year, open accounts for clients or sign
them up for products using an electronic signature.
This brings the bank to our clients.
• access to various remote banking services was
combined under a single number (34 50) that offers
clients the possibility of carrying out most simple
banking transactions by phone with a multimedia
advisor from 8 a.m. to 9 p.m., six days a week, when
their branch is closed.
• clients can also sign up for products and services
remotely or by phone through their usual branch
advisor without the need for a visit.
Management Report
Crédit du Nord continued to overhaul its banking
applications to offer the same features on all channels
(internet, smartphone and tablet computers) using
a modern, fluid and user-friendly interface so that its
independent clients can carry out their transactions
themselves. As a result, services such as entering
beneficiaries, transferring funds, checking upcoming
direct debits and viewing personal protection and other
insurance policies are provided no matter which device
or operating system (Android, iOS and Windows) is used.
After 2015, a historic year in terms of customer acquisition,
growth in the active Individual Customer base slowed
down slightly in the first half of 2016, at 2.2% year-onyear, with more than 65,800 new clients. At June 30,
2016, the customer base consisted of nearly 1.9 million
active individual customers.
Two new special applications were also launched this
year: the smartwatch app and the employee savings app.
(at June 30)
5
Further development of the individual
customer base
Individual Customer Base
Number of customers (thousands)
+2.2 %
In the interest of permanently guaranteeing the
confidentiality of information exchanged and helping
clients browse securely, Crédit du Nord offers them secure
software (“Trusteer”).
More and more clients, whether Individuals or Businesses,
are checking their account statements online.
Overall, digital technologies are an integral part of Crédit
du Nord Group’s fulfilment of our promise to focus on our
client relationships.
The spread of these applications to multiple profiles, the
upgrades to newer and more powerful software versions,
the expansion of features available and the improvement
in accessibility through several remote channels are all
testimony to our desire to constantly adapt to meet the
needs of our clients while remaining close to them.
Sales activity
The present analysis of Crédit du Nord Group’s sales
activity extends across the entire scope of the Group’s
banks, i.e. Crédit du Nord and its subsidiary banks.
11,741
584
11,780
659
11,841
919
1,881
2013
2014
2015
2016
Growth of the customer base in the first half of 2016 was
enhanced by customer acquisition campaigns that used
word-of-mouth and synergies with the Professional and
Business Customer markets.
The Priority Contact List (LCP) established a few years
ago is still paying off in terms of increasing the number
of products and services sold to each client: nearly 48%
of clients have six or more products. In fact, the LCP
helps advisors target which clients they should contact
depending on events in their lives or their appetite score.
The indicators provided relate to euro-based businesses,
which account for virtually all of the Group’s activities.
Outstanding loans and growth in customer bases are
based upon period-end figures.
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5
Management Report
Professional Customer Base
Business Customer Base
(at June 30)
(at June 30)
Number of customers (thousands)
Number of companies (in thousands)
+4.4%
+1.8%
1202
584
1209
659
1218
919
228
2013
2014
2015
2016
The first half of 2016 saw significant momentum in the
Professional Customer market.
The Professional Customer base grew rapidly in 2015.
Momentum in terms of new customer relationships (more
than 12,000 new professional customers acquired, up
+2.4% versus 2015) went hand-in-hand with a keen focus
on the quality of targeted prospective customers: Fortyfive percent are businesses launched more than two years
ago and 22% of new qualified customers are independent
professionals. Ultimately, the active professional customer
base posted highly dynamic growth of +3.5% (excluding
private banking relationships).
This improvement speaks to the quality of Crédit du
Nord Group’s local presence, with tailored products and
services, as well as dedicated account managers trained
to address both the personal and commercial aspects of
our customer relationships.
Sales of new products to existing professional customers
were robust, driven by the success of the Convention
Alliance package deal, held by 75% of the customer base.
In addition, nearly 47% of professional customers turn to
the Group for both their business and personal banking
needs. Forty-two percent of Crédit du Nord’s professional
customers have four or more products.
The active Business Customer base grew by +1.8%.
More than one out of four new customer relationships
was established with companies generating more than
€7.5 million in revenue. The number of customers whose
main baking relationship is with Crédit du Nord grew by
3.2% among businesses with revenue below €7.5 million
and 3.7% among businesses with revenue above €7.5
million.
39.5
173
39.8
171
40.3
205
41.0
2013
2014
2015
2016
New product launches
New products and services were launched in 2016:
• in the Individual Customer market, the new Accidents
de la Vie personal injury insurance product gives clients
coverage for non-occupational accidents (domestic
or medical accidents, natural disasters, assault, etc.).
This insurance can cover entire families. Two versions
(“Essentielle” and “Sérénité”) are available to match
client needs.
• in the Professional Customer market, Crédit du Nord
signed an agreement with the “jedeclare.com” platform
developed under the authority of the Supreme Council
of the National Association of Chartered Accountants.
This platform makes it possible to electronically transmit
the account statements and tax files of clients shared
by the bank and accountants;
• in the Business Customer market, a new mobile app
has been launched. It is available in the Apple Store
and Google Play and allows clients to manage their
accounts from their smartphones and tablets.
Customer satisfaction surveys
The Group’s performances are also measured by
satisfaction surveys. In 2016, the competition survey
conducted by CSA(1) ranked Crédit du Nord among the
leaders in customer satisfaction: the bank took second
place in three markets (Individual, Professional and
Business Customers). This survey places a particular
emphasis on the quality of the client’s relationship with
advisors and branch personnel.
(1) Competition survey measuring customer satisfaction carried out by polling
institute CSA on a representative sample of more than 14,400 individual,
professional and business customers of the top 11 French banks.
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Management Report
Another sharp rise in on-balance sheet
savings
On-balance sheet savings increased +9.8% year-on-year,
driven predominantly by the rise in demand deposits.
After two consecutive years (2014 and 2015) in which a
substantial level of demand deposit inflows was recorded,
the trend continued in 2016. Demand deposits picked
up by +8.3% year-on-year on the Individual Customer
market. On the Professional and Business Customer
markets, there was an equally robust increase of +14.4%.
In total, €3.6 billion in on-balance sheet deposit inflows
were recorded year-on-year, including €2.3 billion in the
first half of 2016 alone. They were buoyed once again
by persistently high customer cash surpluses even in the
context of a weak economic recovery.
Regulated savings account deposits were down slightly
by -0.4%. Livret A savings book assets were stable while
sustainable development savings book (LDD) and regular
savings book (CSL) assets declined slightly, as they
were shifted into life insurance vehicles, which drained
household savings. On the plus side, Home Savings
inflows remained on track, with deposits up +4% yearon-year.
As for business customers, the regular savings book for
Institutional customers and term accounts (CAT) continued
to post remarkable gains (more than +25% year-on-year).
This raised the volume of savings in institutional CSLs and
term accounts to more than €8 billion at end-June 2016,
with nearly €1.2 billion in inflows over the first half of 2016.
5
Among off-balance sheet savings, life
insurance AuM rose, while the environment
for SICAV-FCP mutual funds was more
difficult
Life insurance AUM continued to grow in the first half of
2016, up +3.3% year-on-year. Gross inflows remained
buoyant, soaring to €1.5 billion, i.e., +10.7% compared
to June 2015. Net inflows grew by +6.5% to €709 million.
In a difficult stock market climate, medium- to long-term
SICAV-FCP assets fell significantly (-10.5%) in the first half
to €1.7 billion. Short-term SICAV-FCP assets continued to
plunge, down by -59.4% year-on-year. Returns on these
vehicles were heavily impacted by low short-term money
market rates.
Off-balance sheet savings
(at June 30)
(in €bn)
24.8
26.0
26.9
26.3
-2.0%
1.9
1.7
2.0
1.3
1.9
0.7
-10.5%
-59.4%
1.7
0.3
+3.3%
16.2
17.2
18.6
5.0
5.5
5.6
2013
2014
2015
19.2
-9.8%
5.1
On-Balance Sheet Savings Deposits
(at June 30)
Other Custody
(in €bn)
32.1
33.6
36.4
40.0
+9.8%
9.3
9.0
9.7
8.9
10.4
+15.1%
8.8
-0.4%
13.8
15.1
17.3
2013
2014
2015
Sight deposits
CERS
+11.9%
Life insurance
ST mutual funds
2016
MLT mutual funds
Overall, savings under management (on- and off-balance
sheet) picked up by +4.8%.
11.9
8.8
19.3
2016
Other deposits
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5
Management Report
After an extraordinary 2015, real estate
lending posted declines in the first half
The first six months of 2015 were marked by a record level
of new real estate loans, boosted by an unprecedented
wave of loans repurchased from competitors. Against this
particular backdrop, issuance of new loans fell by -18.3%
in the first half of 2016, obscuring a trend that nonetheless
remained buoyant over the period.
New personal loans
(at June 30)
(in €m)
+14.7%
Outstanding real estate loans continued to rise, up by
+5.7% year-on-year for a total of €20.3 billion at end-June
2016.
Crédit du Nord continued to apply a selective risk policy to
the amounts of customer down payments, debt ratios and
sales of fixed- or adjustable-rate loans limited to terms of
less than 20 years in the vast majority of cases.
New housing loans
(at June 30)
363
171
349
205
400
2013
2014
2015
2016
Total outstanding loans to Individual Customers totalled
€22 billion, up +5.4% year-on-year.
(in €m)
-18.3%
1,829
171
173
1,720
205
2,598
2,122
2013
2014
2015
2016
Solid momentum in consumer loans to individual
customers early in the year
The Group’s sales force focused its efforts on personal
loans during the first half. New loans climbed by +14.7%
and related assets rose by +2.4%.
18
349
173
Management Report
Outstanding loans to Individual customers
(at June 30)
(in €bn)
20.0
20.3
20.9
0.2
0.2
0.2
1.8
1.7
22.1
+5.4%
1.6
+8.4%
0.2
1.6
+1.5%
5
The first half of 2016 was marked by buoyant financelease activity in the Professional and Business Customer
markets. Finance-lease origination posted a substantial
increase (+36.1%) from June 2015, while assets rose by
+3.2%.
New equipment leasing activity
(at June 30)
(in €m)
+36.1%
+5.7%
18.2
18.5
19.2
20.3
2013
2014
2015
2016
Housing loans
Consumer loans
Overdrafts
Crédit du Nord works to finance the
economy, as evidenced by the substantial
increase in its outstanding loans
Crédit du Nord contributed actively to the financing of the
economy and the development of French SMEs.
In fact, it posted solid performance in loans financing
SMEs, with more than €1.8 billion disbursed as capital
expenditure loans or finance leases in the first half, up by
12.8% compared to the first half of 2015.
New capex loans climbed by +7.8%, with a major
contribution from the Business Customer market.
New capital expenditure loans
(at June 30)
288
173
324
171
286
205
389
2013
2014
2015
2016
Loans to Business Customers came to €12.4 billion, up
+2.7% year-on-year.
Outstanding business loans
(at June 30)
(in €bn)
12.1
12.0
12.1
12.4
+2.7%
1.5
1.5
1.5
-1.1%
1.5
1.6
1.6
1.6
-9.4%
1.6
8.9
8.9
9.0
+5.1%
9.5
2013
2014
2015
(in €m)
+7.8%
Medium & long-term loans
1,032
173
1,042
171
1,340
205
1,445
2013
2014
2015
2016
Commercial & cash loans
2016
Overdrafts & others
19
5
Management Report
Financial developments
The financial information presented below was taken from the consolidated financial data for Crédit du Nord Group,
prepared in compliance with IFRS (International Financial Reporting Standards).
(in €m) (including change in PEL/CEL loss allowance)
30/06/2016
30/06/2015
% change 2016/2015
Net interest and similar income
679.6
578.6
+17.5
Net fee income
419.1
404.2
+3.7
1,098.7
982.8
+11.8
NBI
In order to provide an economic assessment of financial
performance, the following comments are restated in the
analyses of Group results:
• the gains earned from tendering VISA Europe securities
to the VISA Inc. offering (+€110.4 million);
• future commitments associated with home loan
savings products (-€1.2 million as at June 30, 2016);
• fair value measurement of financial liabilities
(+€1.4 million as at June 30, 2016);
• valuation of derivatives - Credit Value Adjustment
(CVA) - and Debit Value Adjustment (DVA) (-€1.1 million
as at June 30, 2016).
Consolidated net fee income improved by +3.7%. Service
fee income rose +4.9%, driven by robust customer
acquisition in 2015, a strong focus on increasing the
number of products and services sold to customers and
variable insurance commission inflows. Financial fee
income was stable, reflecting a difficult and volatile market
environment.
Net fee income
(at June 30)
Consolidated Group scope (in €m)
383.1
392.5
404.2
419.1
+3.7%
After restatement for these items, Group NBI fell by -2.1%.
Restated for these items, the net interest margin fell by
-6.0%, despite a substantial increase in deposit volumes
and high levels of new loans in all of the Group’s markets.
The interest margin was held back by a persistent lowinterest rate environment that weighed down operating
margins.
86.3
96.7
99.8
296.8
295.8
304.5
2013
2014
2015
Service fee income
20
Financial fee income
99.7
-0.1%
+4.9%
319.4
2016
Management Report
5
Operating expenses
(in €m)
30/06/2016
30/06/2015
% change 2016/2015
-341.3
-356.7
-4.3
-28.9
-28.2
+2.4
-201.9
-186.2
+8.5
Personnel expenses
Taxes
Other operating expenses
Depreciation and amortisation
TOTAL OPERATING EXPENSES
-33.9
-33.7
+0.7
-606.1
-604.8
+0.2
Operating expenses
Operating expenses were up slightly (+0.2%) during the
first half of 2016. Personnel expenses fell by -4.3% due
to reversals of loss allowances on employee liabilities
(+€10.7 million). Taxes increased by +2.4%, primarily due
to an increase in the contribution to the Single Resolution
Fund. Finally, other operating expenses rose by +8.5%,
driven by IT costs and investment in a period when Crédit
du Nord Group adapted its IT solution to appropriately
respond to customer needs and stricter regulatory
requirements.
(at June 30)
+0.2%
604.0
173
606.6
171
604.8
205
606.1
2013
2014
2015
2016
At the end of June 2016, the Group had 7,793 active staff,
down slightly by -0.3% year-on-year.
30/06/2016
30/06/2015
% change 2016/2015
7,793
7,820
-0.3
Pro-rata active staff count - Group
610,8
21
5
Management Report
30/06/2016
(in €m)
NBI
Operating expenses
GOI
30/06/2015
% change 2016/2015
1,098.7
982.8
+11.8
-606.1
-604.8
+0.2
492.6
378.0
+30.3
Cost-to-income ratio
Book GOI totalled €492.6 million, up by +30.3% compared
to 2015. Restated for the above items, GOI fell by -5.6%.
The book cost-to-income ratio was 55.2%. Restated, it
was 61.3% versus 59.8% in 2015, an increase of 1.5
point.
(at June 30)
Consolidated Group scope (%)
Gross operating income (GOI)
(at June 30)
+30.3%
22
304.5
173
352.4
171
378.0
205
492.6
2013
2014
2015
2016
66.5
173
63.3
171
61.5
205
55.2
2013
2014
2015
2016
Management Report
5
Cost of risk
30/06/2016
Net cost of risk
30/06/2015
% change 2016/2015
-62.4
-83.3
-25.1
42,210.5
38,545.3
9.5
Cost of risk/outstanding loans
0.28%
0.43%
-0.15pt
Crédit du Nord Group’s consolidated cost of risk (1) totalled
-€62.4 million at June 30, 2016 versus -€83.3 million at
June 30, 2015, Cost of risk divided by the total loans
issued by the Group equalled 0.28%, down 15 basis
points compared to the same period in 2015.
On the Business Customer market, the cost of risk in the
first half of 2016, not including collective loss allowances,
fell slightly compared to the first half of 2015, due primarily
to low levels of new loss allowances in the first quarter.
Gross outstanding loans
Net cost of risk, which fell substantially during the first half,
reflected a strong positive impact due to the six-month
review of parameters used to establish loss allowances
for the retail market.
In fact, for the Individual and Professional Customer
markets, cost of risk over the period was favourably
affected by the recalibration of the statistical loss
allowance model, which reflects the improvement noted
on these markets in the recovery curves for loans in default
over the most recent quarters under observation. After
restatement to reflect this technical impact, the Individual
and Professional Customer markets nevertheless
recorded a reduction in risk between these periods, with
a slightly bigger effect on the Professional Customer
market given the action plan launched by the Bank that
specifically targeted this market.
(in €m)
Doubtful and disputed loans (gross)
The loss allowance ratio for doubtful and disputed loans
(net of guarantees received) was 75.8%, in line with the
trend for previously observed ratios.
In addition, collective loss allowances significantly
impacted the cost of risk on the cost of risk over the first
half, related to an increase in “performing loans under
watch” in the Business Customer market, primarily due
to several individual loans with high amounts. In contrast,
the first half of 2015 benefited from a decrease in the
calculation base and the resulting reversal of the related
loss allowance.
30/06/2016
30/06/2015
% change 2016/2015
2,738.4
2,709.2
+1.1
-1,426.7
-1,375.0
+3.8
Ratio of doubtful and disputed loans (gross) to total
loans (gross)
6.5%
7.0%
-0.54pt
Ratio of doubtful and disputed loans (net) to total
loans (net)
3.2%
3.6%
-0.37pt
75.8%
75.7%
0.14pt
Loss allowance ratio for doubtful and disputed loans
net of guarantees received on doubtful loans
(1) Cost of risk represents the net loss allowance recorded on banking activities (allocations to loss allowances less write-backs), plus losses on irrecoverable loans
not covered by loss allowances, less amounts recovered on amortised loans.
23
5
Management Report
Operating income
Taking cost of risk into account, Crédit du Nord Group
generated operating income of €430.2 million in 2016, up
+46.0% in relation to 2015. Restated operating income
fell by -0.6%.
Operating income
(at June 30)
Group scope (in €m)
202.7
249.9
294.7
+46.0%
430.2
-101.8
-102.5
-83.3
-25.1%
-62.4
2013
2014
2015
Cost of risk
2016
Operating income
Operating income before corporation tax
(in €m)
GOI
Cost of risk
OPERATING INCOME
Net income from companies accounted for by the equity method
Gains or losses on fixed assets
OPERATING INCOME BEFORE CORPORATION TAX
30/06/2016
30/06/2015
% change
2016/2015
492.6
378.0
+30.3
-62.4
-83.3
-25.1
430.2
294.7
+46.0
15.9
13.7
+16.1
0.0
0.2
nm
446.1
308.6
+44.6
30/06/2016
30/06/2015
% change
2016/2015
Net income
(in €m)
OPERATING INCOME BEFORE CORPORATION TAX
Corporation tax
CONSOLIDATED NET INCOME
446.1
308.6
+44.6
-118.3
-111.2
+6.4
327.8
197.4
66.1
Consolidated net income amounted to €327.8 million at June 30, 2016, up +66.1% versus 2015.
Restated consolidated net income rose +3.1%.
24
Management Report
5
Outlook
In an environment of persistently low interest rates, despite
the European Central Bank’s accommodative monetary
policy promoting business investment, growth prospects
for the eurozone in 2016 were revised downward due
to the consequences of Brexit, which also reinforced
major uncertainties holding back European economies.
Favourable oil prices and exchange rates should
nevertheless remain positive consumption factors in the
second half of 2016.
In a context marked by the breadth of the transformation
sweeping the banking sector (digital revolution, regulatory
constraints), Crédit du Nord began to overhaul its business
model.
The various resulting initiatives draw on the successful
actions undertaken in recent years, with a focus on
furthering and ramping up these efforts to meet new
challenges (particularly the necessary consolidation of
expertise and the distribution of new technologies to
customers).
In order to continue to hold a strong position in the new
banking environment, Crédit du Nord Group reasserted the
seriousness of its ambitions through four commitments:
• continuing to lead the way in customer satisfaction
by delivering the services expected by its clients at the
right time and in the right way;
• stepping up efforts aimed at developing its customer
base and revenues, drawing on the sales momentum
built up over the past two years and on the successful
activation of its growth drivers (distribution of personal
protection insurance products, Private Banking,
Corporate Finance, etc.);
• maintaining attractive profit margins in order
to be able to finance its investments and preserve
shareholder trust;
• conducting the Group transformation process with
a series of objectives, primarily focused on enhancing
its customer relationship model (better differentiation
in its approach to the different customer segments,
adaptation of its operational infrastructure).
25
5
Consolidated financial statements
3. Consolidated financial statements
Consolidated balance sheet
Assets
(in €m)
Note
Cash, due from central banks
Financial assets at fair value through profit or loss
3
Hedging derivatives
31/12/2015
4,524.8
1,047.6
110.7
121.4
2,164.0
1,565.5
Available-for-sale financial assets
4
8,493.1
7,651.3
Due from banks
5
6,445.0
9,219.4
Customer loans
6
36,151.4
35,491.8
2,163.8
2,096.2
660.8
476.4
-
0.2
Lease financing and similar agreements
Revaluation differences on portfolios hedged against interest rate risk
Held-to-maturity financial assets
Tax assets
31.8
68.0
214.5
192.5
0.3
0.3
Investments in subsidiaries and affiliates accounted for by the equity
method
294.6
278.7
Tangible and intangible fixed assets
532.8
533.7
508.0
508.0
62,295.6
59,251.0
Other assets
Non-current assets held for sale
Goodwill
TOTAL
26
30/06/2016
7
5
Liabilities
Note
30/06/2016
-
-
3
2,850.0
2,635.8
910.6
662.2
Due to banks
8
6,606.1
7,156.9
Customer deposits
9
38,008.9
35,475.4
10
7,023.1
6,841.1
2,030.3
1,396.5
Tax liabilities
337.3
485.4
Other liabilities
850.8
848.4
-
-
(in €m)
Due to central banks
Financial liabilities at fair value through profit or loss
Hedging derivatives
Debt securities
Revaluation differences on portfolios hedged against interest rate risk
Underwriting reserves of insurance companies
Loss allowances
Subordinated debt
TOTAL DEBT
11
31/12/2015
227.6
223.6
530.6
582.6
59,375.3
56,307.9
Common stock and associated reserves
1,065.2
1,068.5
Consolidated reserves
1,453.0
1,346.2
Net income
Sub-total
Gains or losses booked directly to equity
Sub-total, equity, Group share
Non-controlling interests
TOTAL SHAREHOLDERS’ EQUITY
TOTAL
327.8
388.0
2,846.0
2,802.7
74.2
140.2
2,920.2
2,942.9
0.1
0.1
2,920.3
2,943.0
62,295.6
59,251.0
27
5
Consolidated income statement
Note
First-Half 2016
2015
First-Half 2015
Interest and similar income
12
807.5
1,620.3
858.7
Interest and similar expenses
12
-259.3
-484.5
-295.3
0.6
3.2
1.6
Fee income
13
461.8
896.7
443.0
Fee expenses
13
(in €m)
Dividends on equity securities
Net income from financial transactions
-80.8
-38.8
41.6
14.7
o/w net gains and losses on financial instruments at fair value through profit or loss
14
14.8
21.7
-6.8
o/w net gains and losses on available-for-sale financial assets
15
116.9
19.9
21.5
Income from other activities
Expenses due to other activities
Net banking income
Personnel expenses
16
Other administrative costs
Amortisation and depreciation expense on intangible and tangible fixed assets
Total operating expenses
Cost of risk
17
Operating income
Share of net income of companies accounted for by the equity method
Net gains or losses on other assets
8.2
17.6
8.3
-9.1
-21.4
-9.4
1,098.7
1,992.7
982.8
-341.3
-711.7
-356.7
-230.9
-444.7
-214.4
-33.9
-76.0
-33.7
-606.1
-1,232.4
-604.8
492.6
760.3
378.0
-62.4
-179.2
-83.3
430.2
581.1
294.7
15.9
27.7
13.7
-
0.2
0.2
Goodwill impairment
-
-
-
Earnings before tax
446.1
609.0
308.6
-118.3
-221.0
-111.2
327.8
388.0
197.4
Income tax
Consolidated net income
CONSOLIDATED NET INCOME AFTER TAXES
Earnings per ordinary share (in euros)
Diluted earnings per ordinary share (in euros)
Number of shares comprising the share capital
28
-42.7
131.7
18
-
-
-
327.8
388.0
197.4
2.95
3.49
1.77
2.95
3.49
1.77
111,282,906
111,282,906
111,282,906
5
Statement of net income and gains and losses booked directly to equity
First-Half 2016
2015
First-Half 2015
327.8
388.0
197.4
-
-
-
-65.5
75.2
-4.7
52.2
32.5
-78.6
-117.7
42.7
73.9
-0.1
-
-
Revaluation difference for the period
-0.1
-
-
Reclassified in the income statement
-
-
-
(in €m)
Net income
Translation gain (loss)
Revaluation difference for the period
Reclassified in the income statement(1)
Hedging derivatives
Share of gains and losses booked directly to equity from companies accounted for
by the equity method that will be subsequently reclassified in the income statement
0.1
0.5
1.0
-0.5
1.2
1.4
Gains and losses booked directly to equity that will be subsequently reclassified
in the income statement
-66.0
76.9
-2.3
Actuarial gains or losses on post-employment benefits
-10.9
16.8
10.0
Taxes on items that will not be subsequently reclassified in the income statement
Share of gains and losses booked directly to equity from companies accounted
for by the equity method that will not be subsequently reclassified in the income
statement
Taxes on items that will not be subsequently reclassified in the income statement
Gains and losses booked directly to equity that will not be subsequently
reclassified in the income statement
Total gains and losses booked directly to equity
NET INCOME AND GAINS AND LOSSES BOOKED DIRECTLY TO EQUITY
o/w Group share
o/w non-controlling interests
-
-
-
3.8
-5.8
-3.5
-7.1
11.0
6.5
-73.1
87.9
4.2
254.7
475.9
201.6
254.7
475.9
201.6
-
-
-
(1) Of which -€83.5 million due to the disposal of VISA Europe shares in the first half of 2016 (see Note 1).
29
5
Change in shareholders’ equity
Capital and associated reserves
Equity instruments
and associated
reserves
Elimination
of treasury
stock
890.3
-
171.7
-
1.7
1.7
-0.3
-0.3
-
-
SHAREHOLDERS’ EQUITY AT JUNE 30, 2015
Capital increase
Elimination of treasury stock
Issuance of equity instruments
Equity component of share-based payment plans
H2 2015 dividends paid
Impact of acquisitions and disposals of non-controlling interests
Sub-total of changes linked to relations with shareholders
Gains and losses booked directly to equity
Other changes
H2 2015 net income
Sub-total
Change in equity of associates and joint ventures accounted for using the equity method
Sub-total
890.3
173.1
-
-
2.1
2.1
3.0
3.0
-
-
SHAREHOLDERS’ EQUITY AT DECEMBER 31, 2015
Distribution of earnings
890.3
178.2
-
-
0.5
-
SHAREHOLDERS’ EQUITY AT JANUARY 1, 2016
Capital increase
H1 2016 dividends paid(1)
Gains and losses booked directly to equity (2)
Other changes (3)
H1 2016 net income
Sub-total
Sub-total
890.3
178.7
-
-
0.8
0.8
-
(in €m)
SHAREHOLDERS’ EQUITY AT JANUARY 1, 2015
Capital increase
H1 2015 dividends paid
Gains and losses booked directly to equity
Other changes
H1 2015 net income
Sub-total
Sub-total
SHAREHOLDERS’ EQUITY AT JUNE 30, 2016
Common
stock
Total
1,062.0
1.7
1.7
-0.3
-0.3
1,063.4
2.1
2.1
3.0
3.0
1,068.5
0.5
-
-
-
1,069.0
0.8
0.8
-4.6
-4.6
-
890.3
174.9
-
1,065.2
-4.6
-
-4.6
-
(1) The amount of dividends distributed by the Group during the first half of 2016 totalled €278.2 million.
(2) Actuarial gains or losses on post-employment defined-benefit plans, net of tax, are transferred directly to Consolidated reserves at year-end.
(3) Reclassification of the impact of IFRIC 21 recognised in 2015 to consolidated reserves (€4.6 million).
At June 30, 2016, Crédit du Nord SA’s fully paid-up share capital amounted to €890,263,248 and consisted of
111,282,906 shares each with a par value of €8.
30
Consolidated Consolidated net
reserves
income
Gains and losses booked directly to equity (net of tax)
that will be subsequently reclassified
in the income statement
Shareholders’
Gains and losses
Change in fair value of
Change in fair value of
equity, Group Share capital booked directly
available-for-sale assets
hedging derivatives
Total
share and reserves
to equity
5
Total consolidated shareholders’
Total
equity
1,582.6
-244.8
-244.8
6.6
0.3
6.9
-
197.4
197.4
-
63.3
-3.0
-3.0
0.7
0.7
0.1
-
63.4
-3.0
-3.0
0.7
0.7
2,708.0
1.7
-244.8
-243.1
3.6
197.4
201.0
0.7
0.7
1.2
-
-1.1
-
0.1
-
2,708.1
1.7
-244.8
-243.1
3.6
197.4
201.0
0.7
0.7
1,344.7
4.4
-2.9
1.5
-
197.4
190.6
190.6
-
61.0
79.5
79.5
-0.4
-0.4
0.1
-
61.1
79.5
79.5
-0.4
-0.4
2,666.6
2.1
2.1
83.9
0.1
190.6
274.6
-0.4
0.5
1.2
-
-1.1
-
0.1
-
2,666.7
2.1
2.1
83.9
0.1
190.6
274.6
-0.4
-0.4
1,346.2
387.5
388.0
-388.0
140.1
-
0.1
-
140.2
-
2,942.9
-
1.2
-
-1.1
-
0.1
-
2,943.0
-
1,733.7
-278.2
-278.2
-7.1
4.6
-2.5
-
327.8
327.8
-
140.1
-66.0
-66.0
0.1
0.1
0.1
-0.1
-0.1
-
140.2
-66.1
-66.1
0.1
0.1
2,942.9
0.8
-278.2
-277.4
-73.2
327.8
254.6
0.1
0.1
1.2
-
-1.1
-
0.1
-
2,943.0
0.8
-278.2
-277.4
-73.2
327.8
254.6
0.1
0.1
1,453.0
327.8
74.2
-
74.2
2,920.2
1.2
-1.1
0.1
2,920.3
31
5
Statement of cash flows
(in €m)
30/06/2016
31/12/2015
30/06/2015
327.8
388.0
197.4
34.3
76.8
34.0
-
-
-
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (I)
Amortisation and depreciation expense on tangible and intangible fixed assets
Impairment of goodwill and other fixed assets
Net allocation to loss allowances and write-downs (including underwriting reserves
of insurance companies)
Net income (loss) from companies accounted for by the equity method
Change in deferred taxes
Net income from the sale of long-term available-for-sale assets and consolidated
subsidiaries
Change in deferred income
Change in prepaid expenses
9.3
78.7
39.5
-15.9
-27.7
-13.7
-5.2
3.2
-10.6
-110.9
-6.7
-0.7
7.2
-4.6
7.1
-1.3
-0.1
-3.0
Change in accrued income
-8.8
22.4
23.0
Change in accrued expenses
26.3
-52.6
62.2
Other changes
Non-monetary items included in net income and other adjustments (not including
income on financial instruments measured at fair value through profit or loss) (II)
167.8
314.1
153.6
102.8
403.5
291.4
Net income on financial instruments measured at fair value through profit or loss (1)
-14.8
-21.7
6.8
Interbank transactions
2,207.5
722.3
1,869.7
Transactions with customers
1,768.0
1,845.8
1,087.4
-406.8
-2,060.3
-175.6
Transactions related to other financial assets and liabilities
Transactions related to other non-financial assets and liabilities
-257.4
-208.7
-182.7
Net increase/decrease in cash related to operating assets and liabilities (III)
3,296.5
277.4
2,605.6
NET CASH FLOW FROM OPERATING ACTIVITIES (A)=(I)+(II)+(III)
3,727.1
1,068.9
3,094.4
90.8
1.5
0.7
-31.5
-64.0
-29.2
59.3
-62.5
-28.5
-278.2
-244.8
-244.8
-50.0
-100.0
-
-328.2
-344.8
-244.8
-
-
-
3,458.2
661.6
2,821.1
1,047.9
369.8
369.8
175.7
192.2
192.2
4,525.8
1,047.9
3,252.7
156.0
175.7
130.4
3,458.2
661.6
2,821.1
NET CASH FLOW FROM INVESTING ACTIVITIES
Cash flows from the acquisition and disposal of financial assets and long-term
investments
Cash flows from the acquisition and disposal of tangible and intangible fixed assets
NET CASH FLOW FROM INVESTING ACTIVITIES (B)
NET CASH FLOW FROM FINANCING ACTIVITIES
Cash flow from/to shareholders
Other net cash flows from financing activities
NET CASH FLOW FROM FINANCING ACTIVITIES (C)
IMPACT OF CHANGE IN EXCHANGE RATES ON CASH AND CASH EQUIVALENTS (D)
NET FLOW OF CASH AND CASH EQUIVALENTS (A) + (B) + (C) + (D)
CASH AND CASH EQUIVALENTS
Cash and cash equivalents at the start of the year
Net balance of cash accounts and accounts with central banks (excluding
related receivables)
Net balance of accounts, demand deposits and loans with banks
Cash and cash equivalents at the close of the year
Net balance of cash accounts and accounts with central banks (excluding
related receivables)
Net balance of accounts, demand deposits and loans with banks
NET FLOWS OF CASH AND CASH EQUIVALENTS
(1) Net income on financial instruments measured at fair value through profit or loss includes realised and unrealised income.
32
Notes to the consolidated financial statements
5
4. Notes to the consolidated financial statements
These consolidated financial statements were approved by the Board of Directors on July 28, 2016.
Note 1
Main valuation and presentation rules
for the consolidated financial statements
34
Note 11
Loss allowances and impairments
48
Note 2
Changes in the consolidation scope
37
Note 12
Interest income and expense
49
Note 3
Financial liabilities at fair value
through profit or loss
Note 13
Fee income and expense
50
38
Note 14
Net gains/losses on financial instruments
at fair value through profit or loss
Note 4
Available-for-sale financial assets
41
51
Note 5
Due from banks
43
Net gains/losses on available-for-sale
financial assets
51
Note 6
Customer loans
44
Note 16
Personnel expenses
52
Note 7
Goodwill
45
Note 17
Cost of risk
53
Note 8
Due to banks
46
Note 18
Income tax
54
Note 9
Customer deposits
47
Note 10
Debt securities
48
Note 15
33
5
NOTE 1 Main valuation and presentation rules for the consolidated financial statements
1. Introduction
The condensed interim consolidated financial statements
of Crédit du Nord Group (“the Group”) in respect of the
interim results at June 30, 2016, have been prepared
and are presented in accordance with IAS (International
Accounting Standards) 34 “Interim Financial Reporting”.
As such, the notes to the condensed interim consolidated
financial statements relate to the major events and
transactions affecting the Group’s financial position and
performance over the first half of 2016. These notes must
be read with the audited consolidated financial statements
for the period ended December 31, 2015 as they appear in
the Registration Document relative to the 2015 fiscal year.
Furthermore, as the Group’s activities are neither seasonal nor
cyclical, the interim results are not influenced by these factors.
The consolidated financial statements are presented
in euros.
2. New standards
The accounting principles and methods used to establish
the condensed interim consolidated financial statements
are identical to those used the Group to prepare
its consolidated financial statements for the period
ended December 31, 2015, in compliance with IFRS
(International Financial Reporting Standards), as adopted
by the European Union and outlined in the notes to the
consolidated financial statements for 2015, completed
by the following amendments applied by the Group as at
January 1, 2016.
Amendments to IFRS applied by the Group from January 1, 2016
Date published by the
IASB
Date adopted by the
European Union
Amendments to IAS 19 “Defined Benefit Plans: Employee Contributions”
November 21, 2013
December 17, 2014
Annual improvements (2010-2012) to IFRS
December 12, 2013
December 17, 2014
May 6, 2014
November 24, 2015
May 12, 2014
December 2, 2015
September 25, 2014
December 15, 2015
December 18, 2014
December 18, 2015
Standards or Interpretations
Amendments to IFRS 11 “Acquisition of an Interest in a Joint Operation”
Amendments to IAS 16 and IAS 38 “Clarification of Acceptable Methods of
Depreciation and Amortisation”
Annual improvements (2012-2014) to IFRS
Amendments to IAS 1 «Presentation of Financial Statements»
The application of these amendments and improvements
is not expected to have a material impact on Group net
income or shareholders’ equity.
Amendments to IAS 19 “Defined Benefit
Plans: Employee Contributions”
These amendments concern employee contributions to
defined-benefit plans. Their aim is to simplify the recognition
of these contributions where they are independent of the
number of years worked by employees.
34
Annual improvements (2010-2012
and 2012-2014) to IFRS
As part of the annual process of improving International
Financial Reporting Standards, the IASB published a
series of amendments to existing standards.
Amendments to IFRS 11 “Acquisition
of an interest in a joint operation”
These amendments clarify how to recognise the
acquisition of an interest in a joint operation, which
constitutes a “business combination” as defined by IFRS
3. Accordingly, IFRS 3 guidelines should be applied in
respect of the interest acquired.
Amendments to IAS 16 and IAS 38
“Clarification of acceptable methods
of depreciation and amortisation”
The IASB has confirmed that the use of the income
method to calculate the depreciation or amortisation of
an asset is not appropriate, barring exceptions.
5
Amendments to IAS 1 “Presentation
of Financial Statements”
In these amendments, the IASB encourages entities to
use their professional judgement when choosing what
disclosures to publish in their financial statements. The
IASB clarifies the concept of materiality and how to apply
it to avoid publishing immaterial information that might
obscure the financial statements.
Accounting standards and interpretations that the Group will apply in the future
The IASB has published standards and interpretations that had not yet been adopted by the European Union as at
June 30, 2016. Application of these standards and interpretation shall only be mandatory as of January 1, 2017 at
the earliest, or upon their adoption by the European Union. Consequently, they were not applied by the Group at
June 30, 2015.
Date published by the
IASB
Application dates: fiscal
years beginning from
IFRS 9 “Financial Instruments”
July 24, 2014
January 1, 2018
IFRS 15 “Revenues from Contracts with Customers”
May 28, 2014
January 1, 2018
IFRS 16 “Leases”
January 13, 2016
January 1, 2019
Amendments to IAS 12 “Recognition of Deferred Tax Assets for Unrealised Losses”
January 19, 2016
January 1, 2017
Amendments to IAS 7 “Disclosure Initiative”
Standards or Interpretations
January 29, 2016
January 1, 2017
Clarifications to IFRS 15 “Revenues from Contracts with Customers”
April 12, 2016
January 1, 2018
Amendments to IFRS 2 “Clarifications of Classification and Measurement
of Share-Based Payment Transactions”
June 20, 2016
January 1, 2018
IFRS 9 “Financial Instruments”
The purpose of IFRS 9 is to overhaul IAS 39. IFRS 9
defines the new rules for classifying and measuring
financial assets and liabilities, the new impairment
methodology for financial assets, and the accounting
treatment of hedging transactions, with the exception
of macro-hedges, for which a separate draft standard is
currently being prepared by the IASB.
published in July 2014, the Group has provided its Risk
and Finance functions with a special structure to conduct
the preparatory work for implementing the standard,
which comes into force on January 1, 2018.
Subject to its adoption by the European Union, IFRS 9 will
apply to fiscal years beginning on or after January 1, 2018,
replacing the accounting principles currently applied for
recognising financial instruments.
In the first six months of 2016, the Group continued
to review its portfolios of financial assets in order to
determine their future classification and measurement
methods under IFRS 9. In addition, work on calibrating
and validating the framework methodology defining the
rules for assessing increases in credit risk and determining
12-month and lifetime expected credit losses, including
the consideration of forecasts, are currently being finalised.
Organisation of the IFRS 9 implementation
programme
Scoping studies on adapting information systems and
processes are also ongoing and some work has begun
on IT developments.
The Group began preliminary work in 2013 to gain an
understanding of the potential consequences of the
future application of IFRS 9. In the version of this standard
At this stage of the IFRS 9 implementation programme,
reasonable estimates of the impacts of its application
cannot be quantified.
35
5
IFRS 15 “Revenues from Contracts
with Customers” and related clarifications
This standard defines the guidelines for recognising
income applicable to all contracts entered into with
customers. There are five steps to be followed:
identification of the contract entered into with the
customer, identification of the performance obligations
included in the contract, determination of the transaction
price of the contract, allocation of the transaction price to
the various performance obligations, and recognition of
income where a performance obligation is met.
Furthermore, amendments have provided clarifications
on its application with respect to the following items:
identification of performance obligations, distinguishing
between principals/agents, and intellectual property
licences.
An analysis of the impacts of IFRS 15 on Group net income
and shareholders’ equity is in progress.
IFRS 16 “Leases”
This new standard changed the way leases are recognised,
especially in the financial statements of the lessee. The
methods for identifying a lease have been changed to
differentiate between the accounting treatments of leases
and service contracts. For any lease, a lessee must
recognise on its balance sheet an asset representing the
right to use the leased asset and a liability representing
the obligation to pay rent. In the income statement, the
depreciation of the asset must be recognised separately
from interest on the lease liability.
Amendments to IAS 12 “Recognition of
Deferred Tax Assets for Unrealised Losses”
These amendments provide clarification on the recognition
of deferred tax assets for unrealised losses on debt
instruments measured at fair value.
Amendments to IAS 7 “Disclosure Initiative”
These amendments are intended to improve the quality of
disclosures on changes in liabilities arising from financing
activities, whether these changes arise from cash flows
or not.
36
Amendments to IFRS 2 “Clarifications
of Classification and Measurement
of Share-Based Payment Transactions”
These amendments clarify the methods for recognising
certain types of share-based payment transactions:
modelling of performance conditions no matter how
settlement is made, the impact of tax withholdings on
plans, accounting treatment of changes in the way plans
are settled.
3. Use of estimates and judgement
In drawing up the consolidated financial statements, the
application of the accounting principles and methods
described in the notes to the consolidated financial
statements led Management to develop assumptions and
make estimates that may have an impact on the amounts
booked to the income statement or under gains and losses
booked directly to equity, the valuation of balance sheet
assets and liabilities, and the disclosures presented in the
relevant notes to the consolidated financial statements.
In order to make these estimates and develop these
assumptions, Management uses data available at the
date on which the consolidated accounts are prepared
and may be called upon to use its own judgement. By
nature, the valuations based on these estimates contain
risks and uncertainties as to whether they will materialise
in the future. Consequently, the final future results of the
transactions in question may differ from these estimates
and therefore have a significant impact on the financial
statements.
These estimates were chiefly used to measure the
fair value of financial instruments, the value of asset
impairments, loss allowances recorded as liabilities on
the balance sheet, deferred tax assets recorded on the
balance sheet and goodwill.
4. Purchase of Visa Europe by Visa Inc.
After approval by the competent European authorities,
Visa Inc.’s purchase of unlisted Visa Europe shares held by
the Group and recorded under “Available-for-sale financial
assets”, for which a contract was signed on November
2, 2015, was settled on June 21, 2016. The Visa Europe
shares were sold in exchange for a three-part settlement:
an immediate payment in cash, a deferred payment in
cash and an immediate transfer of Visa Inc. preferred
shares. The Visa Inc. preferred shares may be converted
into ordinary shares after four to 12 years depending
5
on the conditions precedent. They will not be listed and
their transferability is restricted. To measure the value
of the preferred shares received, their illiquidity and the
uncertainty over the factors that will determine the rate
at which they will finally be converted into ordinary Visa
Inc. shares was taken into account by the Group based
on estimates and assumptions similar to those used to
measure the value of Visa Europe shares at December 31,
2015. This sale has resulted in the recognition of a €110.4
million gain under “Net gains or losses on available-forsale financial assets” (Group share of the net amount after
tax: €105.8 million).
NOTE 2 Changes in the consolidation scope
Change in scope in H1 2016
The consolidation scope included 23 companies at
June 30, 2016:
• 21 fully consolidated companies;
• 2 companies accounted for by the equity method,
including one joint venture and one entity under
significant influence.
The consolidation scope includes subsidiaries (entities
controlled by the Group), joint arrangements (joint
operations or joint ventures over which the Group exercises
joint control) and associates (entities over which the Group
exercises significant influence), whose financial statements
are material relative to the Group’s consolidated financial
statements, particularly with respect to total balance sheet
assets and gross operating income.
No changes were made to the consolidation scope in the
first half of 2016.
Upcoming events
On February 25, 2015, the Group terminated the
memorandum of understanding binding Aviva France
and Crédit du Nord in Antarius, the insurance company
exclusively serving the Crédit du Nord networks, now
jointly owned by Aviva France and Crédit du Nord. This
termination resulted in the exercise of a call option on
Aviva France’s 50% stake in Antarius. At the end of
the two-year period provided for in the agreements so
that the company’s operational management can be
transferred smoothly to Sogécap, Antarius will be wholly
owned by Societe Generale Group (jointly by Sogécap
and Crédit du Nord).
37
5
NOTE 3 Financial liabilities at fair value through profit or loss
Financial assets at fair value through profit or loss
30/06/2016
(in €m)
ASSETS
TRADING BOOK
Bonds and other debt securities
Shares and other equity securities
Other financial assets
SUB-TOTAL TRADING BOOK
FINANCIAL ASSETS DESIGNATED
AT FAIR VALUE THROUGH PROFIT
OR LOSS
Shares and other equity securities
Other financial assets
SUB-TOTAL FINANCIAL ASSETS
DESIGNATED AT FAIR VALUE
THROUGH PROFIT AND LOSS
SUB-TOTAL SEPARATE ASSETS
RELATING TO EMPLOYEE
BENEFITS
TRADING DERIVATIVES
Interest rate instruments
Firm transactions
Swaps
FRAs
Options
Options on organised markets
OTC options
Caps, floors, collars
Foreign exchange instruments
Firm transactions
Options
Equity and index instruments
Other forward financial instruments
Instruments on organised markets
OTC instruments
SUB-TOTAL TRADING
DERIVATIVES
TOTAL FINANCIAL ASSETS AT FAIR
VALUE THROUGH PROFIT OR LOSS
38
Valuation
Valuation
determined
determined
using
using prices
observable
quoted data other than
on active quoted market
markets
prices
(L1)
(L2)
31/12/2015
Valuation
determined
mainly
using nonobservable
market data
(N3)
Valuation
Valuation
determined
determined
using
using prices
observable
markets
prices
Total
(L1)
(L2)
Valuation
determined
mainly
using nonobservable
market data
(N3)
Total
0.4
6.5
6.9
-
-
0.4
6.5
6.9
1.7
5.4
7.1
-
-
1.7
5.4
7.1
-
-
3.8
-
3.8
-
-
-
1.5
-
1.5
-
-
-
3.8
3.8
-
-
1.5
1.5
-
-
-
-
-
-
-
-
-
63.0
58.4
58.4
4.6
4.6
37.0
32.0
5.0
-
-
63.0
58.4
58.4
4.6
4.6
37.0
32.0
5.0
-
-
53.2
49.1
49.1
4.1
4.1
59.6
54.0
5.6
-
-
53.2
49.1
49.1
4.1
4.1
59.6
54.0
5.6
-
-
100.0
-
100.0
-
112.8
-
112.8
6.9
100.0
3.8
110.7
7.1
112.8
1.5
121.4
5
Changes in financial assets at fair value through profit or loss determined using
non-observable parameters (Level 3)
Financial assets designated at fair
value through profit or loss
Trading book
(in €m)
Bonds and
other debt
securities
Shares and
other equity
securities
Other
financial
assets
Bonds and
other debt
securities
Shares and
other equity
securities
Trading derivatives
Other
financial
assets
Interest rate
derivatives
Foreign
exchange
derivatives
Equity and
index derivatives
Commodity
derivatives
Credit
derivatives
Other
forward
Total financial
financial instruments at
instru- fair value through
ments
profit or loss
Balance at January 1, 2016
-
-
-
1.5
-
-
-
-
-
-
-
-
1.5
Acquisitions
-
-
-
1.5
-
-
-
-
-
-
-
-
1.5
Disposals/redemptions
-
-
-
-
-
-
-
-
-
-
-
-
-
Transfer to Level 2
-
-
-
-
-
-
-
-
-
-
-
-
-
Transfer to Level 1
-
-
-
-
-
-
-
-
-
-
-
-
-
Transfer from Level 2
-
-
-
-
-
-
-
-
-
-
-
-
-
Transfer from Level 1
-
-
-
-
-
-
-
-
-
-
-
-
-
Gains and losses for the period (1)
-
-
-
0.8
-
-
-
-
-
-
-
-
0.8
Foreign exchange differences
-
-
-
-
-
-
-
-
-
-
-
-
-
Changes in scope and other
changes
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3.8
-
-
-
-
-
-
-
-
3.8
BALANCE AT JUNE 30, 2016
(1) Gains and losses for the period are recorded under “Net gains/losses on financial instruments at fair value through profit or loss” in the income
statement.
39
5
Financial liabilities at fair value through profit or loss
30/06/2016
(in €m)
Valuation
Valuation
determined
determined
using prices using observable
markets
prices
(L1)
(L2)
31/12/2015
Valuation
determined
mainly
using nonobservable
market data
(N3)
Valuation
Valuation
determined
determined
using prices using observable
markets
prices
Total
(L1)
(L2)
Valuation
determined
mainly
using nonobservable
market data
(N3)
Total
LIABILITIES
TRADING BOOK
Debt securities
Amounts payable on borrowed
securities
sold short
Shares and other equity securities sold
short
Other financial liabilities
SUB-TOTAL TRADING BOOK
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TRADING DERIVATIVES
Interest rate instruments
-
58.0
-
58.0
-
51.9
-
51.9
Firm transactions
-
56.5
-
56.5
-
50.4
-
50.4
Swaps
-
56.5
-
56.5
-
50.4
-
50.4
FRAs
-
-
-
-
-
-
-
-
Options
1.5
-
1.5
-
1.5
-
1.5
-
Options on organised markets
-
-
-
-
-
-
-
-
OTC options
-
-
-
-
-
-
-
-
Caps, floors, collars
-
1.5
-
1.5
-
1.5
-
1.5
-
30.7
-
30.7
-
37.2
-
37.2
Firm transactions
-
25.2
-
25.2
-
30.9
-
30.9
Options
-
5.5
-
5.5
-
6.3
-
6.3
Equity and index instruments
-
-
-
-
-
-
-
-
Other forward financial instruments
-
-
-
-
-
-
-
-
Instruments on organised markets
-
-
-
-
-
-
-
-
OTC instruments
SUB-TOTAL TRADING
DERIVATIVES
SUB-TOTAL FINANCIAL
LIABILITIES AT FAIR VALUE
THROUGH PROFIT OR LOSS (3)
-
-
-
-
-
-
-
-
-
88.7
-
88.7
-
89.1
-
89.1
-
2,761.3
- 2,761.3
-
2,546.7
- 2,546.7
-
2,850.0
- 2,850.0
-
2,635.8
- 2,635.8
Foreign exchange instruments
TOTAL FINANCIAL LIABILITIES AT FAIR
VALUE THROUGH PROFIT OR LOSS (2)
(1) The change in fair value attributable to own credit risk generated a gain of €1.4 million at June 30, 2016. Revaluation differences linked to the Group’s issuer credit risk are measured
using models incorporating the Group’s most recent actual refinancing terms and conditions on the markets and the residual maturity of the relevant liabilities.
(2) Of which securities sold under term repurchase agreements for €658.49 million at June 30, 2016 versus €361.3million at June 30, 2015.
Amount repayable at maturity of financial liabilities designated at fair value through profit or loss
30/06/2016
(in €m)
TOTAL FINANCIAL LIABILITIES
DESIGNATED AT FAIR VALUE
THROUGH PROFIT OR LOSS
40
Amount repayable
Fair value
at maturity
2,761.3
2,737.9
31/12/2015
Difference between
fair value and amount
repayable at maturity
23.4
Amount repayable
Fair value
at maturity
2,546.7
2,524.3
Difference between
fair value and amount
repayable at maturity
22.4
5
NOTE 4 Available-for-sale financial assets
30/06/2016
(in €m)
31/12/2015
Valuation
determined
using prices
quoted
on active
markets (L1)
Valuation
determined
using
observable
data other than
quoted market
prices (L2)
Valuation
determined
mainly
using nonobservable
market data
(L3)
4,392.7
-
-
4,392.7
Valuation
determined
using prices
quoted
on active
Total markets (L1)
Valuation
determined
using
observable
data other than
quoted market
prices (L2)
Valuation
determined
mainly
using nonobservable
market data
(L3)
Total
CURRENT ACTIVITIES
Treasury notes and similar
securities
3,841.0
-
- 3,841.0
o/w related receivables
-
-
-
32.3
-
-
-
17.7
o/w impairments
-
-
-
-
-
-
-
-
-
3,150.9
-
3,150.9
-
2,967.9
-
-
-
9.8
-
-
o/w impairments
Shares and other equity securities (1)
- 2,967.9
-
10.3
-
-
-
-0.4
-
-
-
-0.4
701.1
-
11.1
712.2
501.6
-
20.0
521.6
-
-
-
-
-
-
-
-
o/w impairments
-
-
-
-0.3
-
-
-
-0.3
5,093.8
3,150.9
11.1
8,255.8
4,342.6
2,967.9
-
-
237.3
237.3
-
-
320.8
320.8
-
-
-
-
-
-
-
-
SUB-TOTAL CURRENT ASSETS
Long-term investment securities
o/w impairments
-
-
-
-4.6
-
-
-
-3.8
-
-
237.3
237.3
-
-
320.8
320.8
5,093.8
3,150.9
248.4
8,493.1
4,342.6
2,967.9
-
-
-
-
-
-
SUB-TOTAL
TOTAL AVAILABLE-FOR-SALE
FINANCIAL ASSETS
20.0 7,330.5
o/w loaned securities
340.8 7,651.3
-
-
(1) Including UCITS.
Activity in available-for-sale financial assets
(in €m)
Acquisitions
Reclassifications and changes in scope
Gains and losses on changes in fair value booked to equity
Change in impairment of fixed-income securities booked to profit or loss
First-Half 2016
7,651.3
2,422.9
-1,625.2
30.4
-
Impairment of equity instruments booked to profit or loss
-0.8
Change in related receivables
14.1
0.4
8,493.1
41
5
Change in inventory of available-for-sale assets determined using non-observable
parameters (Level 3)
Treasury notes
and similar
securities
(in €m)
Shares and other
equity securities
Long-term
investment
securities
Total
340.8
-
-
20.0
320.8
Acquisitions
-
-
5.4
30.3
35.7
-
-
-14.3
-148.9
-163.2
Transfers to Level 2
-
-
-
-
-
Transfers to Level 1
-
-
-
-
-
Transfers from Level 1
-
-
-
-
-
Gains and losses for the period booked to
equity
-
-
-
35.6
35.6
Change in impairment of fixed-income
securities booked to profit or loss
-
-
-
-
-
o/w:
increase
-
-
-
-
-
write-back
-
-
-
-
-
Impairment of equity instruments booked to
profit or loss
-
-
-
-0.8
-0.8
Change in related receivables
-
-
-
-
-
-
-
-
0.3
0.3
Changes in scope and other changes
-
-
-
-
-
-
-
11.1
237.3
248.4
42
Bonds and other
debt securities
5
NOTE 5 Due from banks
30/06/2016
(in €m)
Current accounts
Overnight deposits and loans and others
Loans secured by overnight notes
Related receivables
TOTAL - DEMAND AND OVERNIGHTS
Term deposits and loans
Loans secured by notes and securities
Securities received under term repurchase agreements
Subordinated loans and participating securities
Related receivables
TOTAL - TERM RECEIVABLES
TOTAL GROSS
IMPAIRMENTS
TOTAL NET
Fair value of amounts due from banks (1)
31/12/2015
428.1
422.8
73.1
1,003.6
-
-
0.1
0.1
501.3
1,426.5
4,863.4
6,706.6
-
-
966.8
966.0
99.3
99.3
14.2
21.0
5,943.7
7,792.9
6,445.0
9,219.4
-
-
6,445.0
9,219.4
6,445.0
9,219.4
It should also be noted that, of the total amount due from banks at June 30, 2016, €3,826.7 million represented
transactions with Societe Generale Group (€6,695.5 million at December 31, 2015).
(1) Breakdown of the fair value of amounts due from banks by level:
(in €m)
Level 1
Valuation determined using prices quoted on active markets
Level 2
Valuation determined using observable data other than quoted market prices
Level 3
Valuation determined mainly using non-observable market data
TOTAL GROSS
30/06/2016
31/12/2015
-
-
-
-
6,445.0
9,219.4
6,445.0
9,219.4
43
5
NOTE 6 Customer loans
30/06/2016
(in €m)
Trade notes
31/12/2015
471.6
471.3
Other customer loans
34,584.7
34,213.2
Short-term loans
4,666.8
4,646.0
36.9
29.4
Export loans
Capital expenditure loans`
Housing loans
Other loans
Overdrafts
6,867.0
6,673.5
20,932.9
20,814.4
2,081.1
2,050.0
2,480.0
2,174.2
75.2
75.0
37,611.5
36,933.7
-1,344.7
-1,335.3
-115.4
-106.6
Related receivables
TOTAL GROSS
(1)
Impairments of groups of homogeneous assets
IMPAIRMENTS
-1,460.1
-1,441.9
36,151.4
35,491.8
-
-
TOTAL - CUSTOMER LOANS
36,151.4
35,491.8
Fair value of customer loans (2)
37,133.5
36,298.9
TOTAL NET
Securities purchased under resale agreements (including related receivables)
(1) At June 30, 2016, individual loans with a probable risk of loss amounted to €2,549.0 million versus €2,530.6 million at December 31, 2015.
The loss allowance ratio for doubtful and disputed loans net of guarantees received is 75.8%.
The guarantees taken into account do not include guarantees on finance lease outstandings.
(2) Breakdown of the fair value of customer loans by level:
(in €m)
30/06/2016
31/12/2015
Level 1
-
-
Level 2
-
-
Level 3
37,133.5
36,298.9
37,133.5
36,298.9
TOTAL GROSS
Breakdown of other customer loans
(in €m)
31/12/2015
34,563.2
34,197.8
Business customers
13,620.0
13,475.1
Individual customers
19,580.4
19,375.6
Local authorities
Professional customers
Governments and central administrations
Others
Financial customers
TOTAL - BREAKDOWN OF OTHER CUSTOMER LOANS
Related receivables
TOTAL - OTHER CUSTOMER LOANS
44
30/06/2016
Non-financial customers
14.5
13.6
1,200.0
1,183.2
17.2
9.4
131.1
140.9
21.5
15.4
34,584.7
34,213.2
52.9
53.0
34,637.6
34,266.2
5
NOTE 7 Goodwill
(in €m)
Gross value at 31/12/2015
508.0
Acquisitions and other increases
-
Disposals and other decreases
-
GROSS VALUE AT 30/06/2016
508.0
Impairment of goodwill at 31/12/2015
-
Impairment losses
-
IMPAIRMENT OF GOODWILL AT 30/06/2016
-
Net value at 31/12/2015
508.0
NET VALUE AT 30/06/2016
508.0
Sources of net goodwill at June 30, 2016
(in €m)
Banque Courtois
10.2
Banque Laydernier
12.8
Banque Kolb
22.3
Banque Tarneaud
3.3
Société Marseillaise de Crédit
454.2
Fortis branches
5.2
NET VALUE AT 30/06/2015
508.0
Crédit du Nord Group is a single CGU and did not record any goodwill impairment at June 30, 2016.
45
5
NOTE 8 Due to banks
30/06/2016
31/12/2015
Demand deposits and current accounts
167.8
168.2
Overnight deposits and borrowings and others
326.8
398.5
494.6
566.7
6,080.9
6,550.0
-
-
(in €m)
TOTAL DEMAND DEPOSITS
Term deposits and borrowings
Borrowings secured by notes and securities
6,080.9
6,550.0
Related payables
TOTAL TERM DEPOSITS
10.1
11.3
Revaluation of hedged items
20.5
28.9
-
-
6,606.1
7,156.9
6,606.1
7,156.9
Securities sold under repurchase agreements
TOTAL
Fair value of amounts due to banks
(1)
It should also be noted that, at June 30, 2016, €4,571.0 million of the total amount due to banks represented transactions
with Societe Generale Group (€5,080.9 million at December 31, 2015).
(1) Breakdown of the fair value of amounts due to banks by level:
(in €m)
Level 1
Level 2
Level 3
TOTAL GROSS
46
30/06/2016
31/12/2015
-
-
6,606.1
7,156.9
-
-
6,606.1
7,156.9
5
NOTE 9 Customer deposits
30/06/2016
31/12/2015
Demand regulated savings accounts
9,947.1
9,483.6
Term regulated savings accounts
2,415.0
2,420.9
19,934.2
18,885.9
11,608.7
10,969.9
7,060.8
6,790.9
Financial customers
31.9
24.2
(1)
1,232.8
1,100.9
Other term deposits
4,971.4
4,298.4
4,524.7
3,958.8
54.5
61.0
Financial customers
-
-
392.2
278.6
-
-
655.5
361.9
83.8
22.8
1.9
1.9
38,008.9
35,475.4
38,128.6
35,548.6
30/06/2016
31/12/2015
(in €m)
Other demand deposits
Companies and individual entrepreneurs
Others
Companies and individual entrepreneurs
Others
(2)
Borrowings secured by notes and securities
Securities sold to customers under repurchase agreements
Related payables
Guarantee deposits
TOTAL
Fair value of customer deposits (3)
(1) Of which €226.9 million associated with governments and central administrations as at June 30, 2016.
(2) Of which €56.9 million associated with governments and central administrations as at June 30, 2016.
(3) Breakdown of the fair value of customer deposits by level:
(in €m)
Level 1
Level 2
Level 3
TOTAL GROSS
-
-
38,128.6
35,548.6
-
-
38,128.6
35,548.6
47
5
NOTE 10 Debt securities
30/06/2016
(in €m)
Savings certificates
Money market and negotiable debt securities
Bonds
Related payables
SUB-TOTAL
2.2
2.6
6,675.6
6,244.2
335.0
574.9
10.3
19.4
7,023.1
6,841.1
-
-
7,023.1
6,841.1
Revaluation of hedged items
TOTAL
31/12/2015
o/w amount of variable-rate debt
6,364.3
6,147.4
Fair value of debt securities (1)
7,041.5
6,866.2
30/06/2016
31/12/2015
(1) Breakdown of the fair value of debt securities by level:
(in €m)
Level 1
Level 2
Level 3
TOTAL GROSS
NOTE
11 Loss
allowances and impairments
-
-
7,041.5
6,866.2
-
-
7,041.5
6,866.2
Impairments
(in €m)
Impairments
Note at 31/12/2015 Allocations
Reversals
available
Reversals
used
Others
Impairments
at 30/06/2016
Banks
5
-
-
-
-
-
-
Loans to customers
6
1,335.3
174.8
-132.6
-32.8
-
1,344.7
85.8
35.6
-36.2
-2.6
-
82.6
Groups of homogeneous assets
6
107.7
13.1
-4.3
-
-
116.5
Available-for-sale assets
4
Lease financing and similar agreements
4.5
0.8
-
-
-
5.3
2.2
0.2
-0.3
-
0.1
2.2
1,535.5
224.5
-173.4
-35.4
0.1
1,551.3
Others
TOTAL IMPAIRMENTS
Loss allowances
(in €m)
Loss allowances for off-balance sheet commitments with banks
Loss allowances for off-balance sheet commitments with
customers
Loss allowances for employee benefits (1)
Loss
allowances at
31/12/2015 Allocations
-
-
-
Actuarial
Reversals
gains
used or losses
-
-
Loss
allowances at
Others 30/06/2016
-
-
21.8
5.9
-4.0
-
-
-
23.7
118.0
5.5
-0.9
-14.7
10.9
0.2
119.0
Tax loss allowances
13.0
-
-
-
-
-
13.0
Other loss allowances (2)
70.8
4.6
-2.6
-2.1
-
1.1
71.8
223.6
16.0
-7.5
-16.8
10.9
1.3
227.5
TOTAL LOSS ALLOWANCES
(1) Including a €10.7 million reversal at June 30, 2016, following the review of restated pension plans
(2) o/w:
– net loss allowances for cost of risk totalling €3.6 million, mainly including loss allowances for disputes;
– net PEL/CEL loss allowances totalling €46.0 million at June 30, 2016 versus €44.8 million at June 30, 2015.
48
Reversals
available
5
NOTE 12 Interest income and expense
(in €m)
Transactions with banks
First-Half 2016
2015
First-Half 2015
15.8
21.8
7.3
541.0
1,165.8
596.7
Transactions in financial instruments
218.8
363.0
219.0
27.9
57.9
28.8
Held-to-maturity financial assets
-
-
-
Securities lending
-
-
-
190.9
305.1
190.2
31.9
69.7
35.7
9.9
20.2
9.9
22.0
49.5
25.8
-
-
-
TOTAL INTEREST INCOME
807.5
1,620.3
858.7
-21.5
-28.1
-8.7
Hedging derivatives
Finance leases
Real estate lease financing agreements
Non-real estate lease financing agreements
Other interest and similar income
Transactions in financial instruments
Debt securities
Subordinated and convertible debt
Securities borrowing
Hedging derivatives
Other interest and similar expenses
TOTAL INTEREST EXPENSES
TOTAL INTEREST AND SIMILAR INCOME
o/w interest income related to impaired financial assets
-76.9
-191.2
-112.0
-160.9
-265.2
-174.6
-19.2
-67.0
-39.5
-8.1
-17.0
-8.6
-
-
-
-133.6
-181.2
-126.5
-
-
-
-259.3
-484.5
-295.3
548.2
1,135.8
563.4
16.6
31.4
15.8
49
5
NOTE 13 Fee income and expense
(in €m)
First-Half 2016
2015
First-Half 2015
3.3
6.2
2.1
153.1
297.8
145.5
7.3
13.3
6.9
FEE INCOME
Securities transactions
Foreign exchange and financial derivatives transactions
0.9
2.1
1.1
12.4
26.0
13.1
284.8
551.3
274.3
-
-
-
461.8
896.7
443.0
-0.1
-0.5
-0.3
Securities transactions
-1.6
-3.2
-2.1
Foreign exchange and financial derivatives transactions
-0.1
-0.2
-0.2
Loan and guarantee commitments
Services
Others
TOTAL INCOME
FEE EXPENSE
Loan and guarantee commitments
Others
TOTAL EXPENSES
50
-0.7
-1.5
-0.3
-40.2
-75.4
-35.9
-42.7
-80.8
-38.8
5
NOTE 14 Net gains/losses on financial instruments at fair value through profit or loss
First-Half 2016
2015
First-Half 2015
Net gain/loss on non-derivative financial assets held for trading
0.3
0.5
0.3
Net gain/loss on financial assets designated at fair value
0.8
0.4
0.1
(in €m)
Net gain/loss on non-derivative financial liabilities held for trading
Net gain/loss on financial liabilities designated at fair value (1)
Gain/loss on derivative financial instruments held for trading (2)
Net gain/loss on hedging instruments/Fair value hedging (2)
Revaluation of hedged items attributable to hedged risks
Ineffective portion of cash flow hedge
Net gain/loss on foreign exchange transactions
TOTAL (1)
-
-
-
-9.6
-7.1
-9.7
12.7
14.0
4.9
338.1
-210.5
-288.8
-341.9
196.6
271.9
-
-
-
14.4
27.8
14.5
14.8
21.7
-6.8
(1) Since income and expense presented on the income statement are categorised by type and not by the recipient, net income on transactions in financial instruments at fair value
through profit or loss must be assessed as a whole. It is worth noting that the above earnings do not include the cost of refinancing these financial instruments, which is included
in interest income and expense.
(2) The effects of counterparty risk in the fair value of financial derivatives (Credit Value Adjustment - CVA) and own credit risk in the valuation of financial derivatives (Debit Value
Adjustment - DVA) were, respectively:
• -€0.7 million and -€0.3 million in the first half of 2016;
• -€1.7 million and -€13.3 million in 2015;
• -€3.7 million and -€11.5 million in the first half of 2015;
The CVA effect in respect of Societe Generale Group came out at -€0.2 million and the DVA effect at -€0.3 million in the first half of 2016.
NOTE 15 Net gains/losses on available-for-sale financial assets
(in €m)
First-Half 2016
2015
First-Half 2015
CURRENT ACTIVITIES
Gains on sale
4.5
20.9
20.9
Losses on sale
-
-1.2
-
Impairment of equity instruments
-
-
-
Deferred or non-deferred profit sharing on available-for-sale assets
of insurance subsidiaries
SUB-TOTAL
-
-
-
4.5
19.7
20.9
113.2
2.6
1.4
LONG-TERM EQUITY INVESTMENTS
Gains on sale (1)
Losses on sale
Impairment of equity instruments
SUB-TOTAL
TOTAL
-
-0.6
-
-0.8
-1.8
-0.8
112.4
0.2
0.6
116.9
19.9
21.5
(1) Of which €105.8 million for the disposal of VISA Europe shares in the first half of 2016 (see Note 1).
51
5
NOTE 16 Personnel expenses
(in €m)
Employee compensation
First-Half 2016
2015
First-Half 2015
-204.4
-413.9
-207.2
Social security charges and payroll taxes (1)
-72.4
-168.0
-84.5
Net retirement expenses - defined contribution plans
-32.3
-64.1
-32.1
-1.7
-3.7
-1.4
-30.5
-62.0
-31.5
-341.3
-711.7
-356.7
-2.0
-4.3
-0.9
Net retirement expenses - defined benefit plans
Employee profit-sharing and incentives
TOTAL
o/w net expenses in respect of share-based payment plans
(1) Including a €10.7 million reversal in the first half of 2016, following the review of restated pension plans
Free share allocation plan
The new plan offered to Group employees during the period ended June 30, 2016, is briefly described below.
2016
Issuer: Societe Generale
Type of plan
Free shares
Shareholders’ agreement
18/05/2016
Board of Directors’ decision
18/05/2016
Number of shares granted
95,972
Settlement
Societe Generale shares
Vesting period
18/05/2016 - 29/03/2019
Performance-based (1)
yes
Conditions linked to departure from Group
lost
Conditions linked to dismissal
lost
Conditions linked to retirement
In the event of death
maintained
maintained 6 months
Share price at grant date (in euros)
Shares lost at June 30, 2016
-
Shares outstanding at June 30, 2016
95,972
Number of shares reserved at June 30, 2016
95,972
Share price of shares reserved (in euros)
Total value of shares reserved (in €m)
First authorised date for selling the shares
52.21
63.34
29/03/2019
Lock-in period
None
Fair value (% of the share price at grant date)
87%
Valuation method used
(1) For the entire Group, conditions are based on the following performance indicator: Societe Generale Group’s consolidated net income (Group share).
52
34.02
Arbitrage
5
NOTE 17 Cost of risk
First-Half 2016
2015
First-Half 2015
-52.5
-144.8
-61.5
-7.0
-34.1
-22.7
1.8
3.6
1.8
Net allowance for other loss allowances for contingent liability items
-3.6
-2.7
-0.2
Losses not covered by loss allowances
-1.1
-1.2
-0.7
-62.4
-179.2
-83.3
(in €m)
COUNTERPARTY RISK
Net allocation for impairment (1)
Losses not covered by loss allowances
Amounts recovered on amortised receivables
OTHER RISKS
TOTAL
(1) Including the impact related to the recalibration of the statistical loss allowance model for the retail market that took place in the first half of 2016.
53
5
NOTE 18 Income tax
(in €m)
Current taxes
Deferred taxes
TOTAL TAX EXPENSE
(1)
First-Half 2016
2015
First-Half 2015
-123.5
-217.8
-121.8
5.2
-3.2
10.6
-118.3
-221.0
-111.2
(1) Reconciliation of the difference between the Group’s normative tax rate and its effective tax rate
can be broken down as follows:
(in €m)
Earnings before tax and excluding net income from companies
accounted for by the equity method
Normal tax rate applicable to French companies (including the 3.3%
contribution)
Permanent differences
Differential on exempt items or items taxed at a reduced rate
Tax differential on profits taxed outside France
2015
First-Half 2015
430.2
581.2
294.9
34.43%
34.43%
34.43%
5.87%
3.69%
3.45%
-12.64%
-0.06%
-0.13%
-0.01%
-0.04%
-0.03%
Effect of non-deductible losses for the period and
the use of tax loss carry-forwards
-0.15%
-
-
Group effective tax rate
27.50%
38.02%
37.72%
In France, standard corporate income tax is 33.33%.
In addition, companies pay a Social Security Solidarity
Contribution of 3.3% (after deduction from taxable income
of €0.76 million), introduced in 2000. For fiscal years 2013,
2014 and 2015, an Exceptional Contribution of 10.7%
was also added on all profitable companies generating
revenue of more than €250 million. This contribution will
no longer be applied as of the 2016 fiscal year.
Long-term capital gains on equity investments are
tax-exempt, subject to taxation of a share of fees and
expenses equivalent to 12% of the gross capital gain
according to the 2013 Finance Act.
In addition, up until 2015, dividends received under the
parent company/subsidiary regime were tax-exempt,
54
First-Half 2016
subject to taxation on a 5% share representing fees and
expenses. Following a change in tax law that came into
effect in 2016, the share of fees and expenses is:
• 1% for a subsidiary that is part of the tax consolidation
group (this share can no longer be offset at the tax
consolidation group level);
• 5% for a subsidiary that is not part of the tax
consolidation group.
The tax rate used to calculate the deferred taxes of
French companies was 34.43% for earnings taxed at the
standard rate. For earnings taxed at the reduced rate,
the reduced rate is 4.13% given the type of transactions
involved.
Statutory auditors’ review report on the half-yearly financial statements
5
5. Statutory auditors’ review report on the half-yearly
financial statements
For the period from January 1 to June 30, 2016
This is a free translation into English of the statutory auditors’ review report on the half-yearly financial information issued
in French and is provided solely for the convenience of English-speaking users. This report includes information relating
to the specific verification of information given in the group’s half-yearly management report. This report should be read
in conjunction with, and construed in accordance with, French law and professional standards applicable in France.
To the Shareholders,
In compliance with the assignment entrusted to us by your annual general meeting and in accordance with the requirements
of article L. 451-1-2 III of the French monetary and financial code (Code monétaire et financier), we hereby report to you on:
• the review of the accompanying condensed half-yearly consolidated financial statements of Crédit du Nord, for the
period from January 1 to June 30, 2016;
• the verification of the information presented in the half-yearly management report.
These condensed half-yearly consolidated financial statements are the responsibility of your board of directors. Our
role is to express a conclusion on these financial statements based on our review.
I- Conclusion on the financial statements
We conducted our review in accordance with professional standards applicable in France. A review of interim financial
information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying
analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with
professional standards applicable in France and consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed
half-yearly consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34 –
standard of the IFRSs as adopted by the European Union applicable to interim financial information.
II- Specific verification
We have also verified the information presented in the half-yearly management report on the condensed half-yearly
consolidated financial statements subject to our review.
We have no matters to report as to its fair presentation and consistency with the condensed half-yearly consolidated
financial statements.
Neuilly-sur-Seine and Paris-La Défense, August 26, 2016
The statutory auditors
French original signed by
DELOITTE & ASSOCIES
José-Luis GARCIA
ERNST & YOUNG et Autres
Vincent ROTY
55
6
Capital adequacy ratio
Disclosures under Pillar 3
The Basel 3 capital adequacy ratio was 11.7% at June 30, 2016 (with a Basel 3 Core Tier 1 ratio of 9.3%).
As a result, the Group share of equity stood at €2,920.3 million at June 30, 2016 (compared to €2,943.0 million at
December 31, 2015).
After taking prudential deductions into account, prudential Basel 3 Core Tier 1 capital came out at €1,642.3 million and
Basel 3 risk-weighted assets stood at €17,637.6 million.
Risk-weighted assets can be broken down as follows by type of risk:
• credit risk exposure of €16,505.8 million, accounting for 93.6% of risk-weighted assets at June 30, 2016;
• market risk exposure of €101.2 million, accounting for 0.6% of risk-weighted assets at June 30, 2016;
• operational risk exposure of €1,030.6 million, accounting for 5.8% of risk-weighted assets at June 30, 2014.
Prudential capital, risk-weighted assets and capital adequacy ratios
30/06/2016
Basel 3
31/12/2015
Basel 3
2,920.3
2,943.0
-
-
Intangible assets
-154.7
-154.3
Goodwill
-508.0
-508.0
Theoretical dividends
-327.8
-278.0
(in €m)
Consolidated equity, Group share (IFRS)
Non-controlling interests, after estimated dividend payout
Other regulatory adjustments
-287.5
-323.6
1,642.3
1,679.1
Basel 3 deductions
-
-
Additional Tier 1 capital
-
-
TOTAL TIER 1 CAPITAL
1,642.3
1,679.1
426.9
439.3
Tier 2 capital
Basel 3 deductions
TOTAL REGULATORY CAPITAL (TIER 1 + TIER 2)
Credit risk-weighted assets
Market risk-weighted assets
Operational risk-weighted assets
TOTAL GROSS OUTSTANDINGS
426.9
439.3
2,069.2
2,118.4
16,505.8
16,267.1
101.2
104.9
1,030.6
1,015.5
17,637.6
17,387.5
9.3%
9.7%
CAPITAL ADEQUACY RATIOS
CORE TIER 1 RATIO
TIER 1 RATIO
TOTAL CAPITAL ADEQUACY RATIO
56
9.3%
9.7%
11.7%
12.2%
Leverage ratio
6
Leverage ratio
Crédit du Nord Group calculates its leverage in accordance with the leverage ratio framework defined by the Basel
Committee in January 2014. These rules have been enacted into European regulations (CRR as amended by the
Commission Delegated Act of October 10, 2014).
The leverage ratio is managed with the intention of calibrating the amount of Tier 1 capital (the numerator of the leverage
ratio) and to control the Group’s total leveraged exposure (the ratio’s denominator).
The minimum amount mentioned in the Basel Committee’s recommendations is 3%.
The leverage ratio is currently being observed to determine the minimum requirements. When they are established, the
Group’s target will be adjusted as required. At June 30, 2016, Crédit du Nord Group’s leverage ratio stood at 2.5%.
Summary of the leverage ratio and the transition of the accounting balance sheet
to the leveraged exposure prudential scope
30/06/2016
31/12/2015
1,642.3
1,679.1
58,771.3
56,328.1
-
-
2,668.9
2,059.9
-
-
Off-balance sheet exposures (loan and financial guarantee commitments)
5,469.4
5,231.2
Technical and regulatory adjustments (Tier 1 prudential capital deductions)
-793.2
-773.7
66,116.3
62,845.6
2.5%
2.7%
(in €m)
Tier 1 capital
Total prudential balance sheet assets
Adjustments for fiduciary assets recorded on the balance sheet but excluded from the leveraged exposure
Adjustments for derivative exposures
Adjustments for securities financing transactions
Leveraged exposure
Fully loaded CRR leverage ratio
57
7
Cross Reference tables
1. Updated cross reference table
Page number
of the Registration
Document
Page number
of the of the
update
1. Responsibility for the registration document
245
4
2. Statutory auditors
245
5
6-7
-
N/A*
11-12
28 to 35; 82 to 94; 211-212
-
208
9
26; 108-109
-
6.1. Main activities
16 to 20
15 to 19
6.2. Main markets
103
44
N/A*
-
211
-
N/A*
-
11
9
11; 77-78; 182-183
9
108-109
-
213 to 242
-
Chapters
3. Select financial information
3.1. Select historic financial information for the issuer, for each financial year
3.2. Select financial information for interim periods
4. Risk factors
5. Information about the issuer
5.1. History and development of the company
5.2. Investments
6. Overview of activities
6.3. Exceptional events
6.4. Degree of issuer dependence on patents, licences, industrial,
commercial, and financial contracts, and on new manufacturing
processes
6.5. Basis of issuer statements concerning its competitive position
7. Organisation chart
7.1. Overall description of the Group
7.2. List of major subsidiaries
8. Buildings, plant and equipment
8.1. Major existing or planned tangible fixed assets
8.2. Environmental issues with the potential to influence the use
of tangible assets
* N/A: Non applicable
58
Updated cross reference table
Page number
of the Registration
Document
Page number
of the of the
update
9.1. Financial situation
21 to 25
20 to 24
9.2. Operating income
21 to 25
20 to 24
42 to 47
26 to 31
48
32
10.3. Information on the issuer's borrowing conditions and financing
structure
102; 111; 113;
120
43; 46; 48
10.4. Information concerning any restrictions on the use of capital having
influenced or capable of influencing the issuer's transactions
N/A*
-
10.5. Information concerning the expected sources of financing needed
to honour the commitments listed in chapters 5.2 and 8.1
N/A*
-
N/A*
-
26
25
N/A*
-
4
6
185 to 189
-
190 to 199
-
131-132
-
Chapters
7
9. Overview of financial situation and results
10. Cash flow and capital
10.1. Information on the issuer’s capital
10.2. Source and amount of the issuer’s cash flow
11. Research and development, patents and licences
12. Information on trends
13. Profit forecasts or estimates
14. Administrative, Management and Supervisory bodies and
General Management
14.1. Board of Directors and General Management
14.2. Conflicts of interest involving the administrative, management and
supervisory bodies and General Management
15. Compensation and benefits
15.1. Amount of compensation paid and benefits in kind
15.2. Total loss allowance set aside or recorded by the issuer for the
payment of pensions and other benefits
16. Corporate Governance
16.1. Expiry of current terms of office
4; 185 to 188
6
16.2. Service agreements binding members of the administrative bodies
N/A*
-
16.3. Information on the issuer's Audit Committee and Compensation
Committee
4; 27-28;
190 to 192; 195
8
16.4. Declaration indicating whether or not the issuer complies with
corporate governance policy
28
-
22; 128; 175; 214
21
193 to 198
-
210
-
17. Employees
17.1. Number of employees
17.2. Ownership interests and stock options of Directors
17.3. Agreement allowing for employees to invest in the issuer’s capital
59
7
Updated cross reference table
Page number
of the Registration
Document
Page number
of the of the
update
18.1. Shareholders owning more than 5% of the share capital or voting
rights
210
-
18.2. Other voting rights
210
-
18.3. Ownership of the issuer
210
-
N/A*
-
131-132; 162; 202 to 204
-
Chapters
18. Key shareholders
18.4. Agreement of which the issuer is aware, the implementation
of which could lead to a change in ownership at a future date
19. Transactions with affiliates
20. Information concerning the issuer’s financial situation
and results
20.1. Historic financial information
42 to 136; 145 to 184
-
N/A*
-
42 to 136; 145 to 184
-
137-138; 200-201
-
20.2. Pro forma financial information
20.3. Financial statements
20.4. Verification of annual historic financial information
20.5. Date of latest financial information
42; 145
26
N/A*
26 to 54
20.7. Dividend policy
210
30-31
20.8. Legal and arbitration procedures
211
-
N/A*
-
21.1. Share capital
208; 210
-
21.2. Articles of incorporation and bylaws
20.6. Interim financial information
20.9. Significant change in the financial or commercial situation
21. Additional information
208-209
-
22. Major contracts
N/A*
-
23. Information from third parties, expert certifications and interest declaration
N/A*
-
209
-
11; 76 to 78; 182-183
9
24. Documents available to the public
25. Information on ownership interests
60
Cross Reference table for the Interim Financial Report
7
2. Cross Reference table for the Interim Financial Report
In accordance with Article 212-13 of the General Regulations of the Autorité des Marchés Financiers (French Securities
Regulator), this update includes information from the interim financial statements described in Article L. 451-1-2 of the
French Monetary and Financial Code and Article 222-4 of the General Regulations of the Autorité des Marchés Financiers:
Interim financial report
Page number of the
Financial statements as at June 30, 2016
26-54
Interim management report
11-25
- Major events that took place over the first six months of the financial year and their
impact on the interim financial statements
-
- Description of the main risks and uncertainties for the six remaining months of the
financial year
-
- Key transactions between related parties
-
Certification of the person responsible for the registration document
Statutory Auditors’ report on the financial statements for the first half 2016
4
55
61
62
Registration Document filed with the Autorité des Marchés Financiers on April 15, 2016 under number D.16-0344.
This update to the Registration Document was filed with the Autorité des Marchés Financiers (AMF)
on August 26, 2016 under number D. 16-0344-A01. It may be used to support a financial transaction
if accompanied by an information document approved by the AMF. This document was produced by the issuer
and is binding upon its signatory.
This Registration Document is available online at www.groupe-credit-du-nord.com
Person responsible for the information contained in this report: Clara LEVY-BAROUCH
– Tel.: +33 (0)1 40 22 45 45 – E-mail: [email protected]

5 - Banque Courtois

Transcription

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