Press Release - Groupe Crédit du Nord

Press Release
Paris, August 4, 2011
FIRST HALF 2011:
DYNAMIC GROWTH IN ACTIVITY AND RESULTS
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•
•
•
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Net Banking Income: +20.1%
Gross operating income: +27.8%
Cost-to-income ratio: up 2.3 points to 62.5%
Consolidated net income: +33.4% to EUR 174.5 million
ROE after tax: 14.9%
These first-half 2011 results include Société Marseillaise de Crédit
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Changes in customer base (excluding Société Marseillaise de Crédit):
- Individual customers: +5.4%
- Professional customers: +2.4%
- Business customers: +3.5%
On July 29, 2011, the Board of Directors of Crédit du Nord approved the 2011 interim financial
statements for the Group (Crédit du Nord, Banques Courtois, Kolb, Laydernier, Nuger, Rhône-Alpes,
Société Marseillaise de Crédit, Tarneaud and brokerage Gilbert Dupont).
At June 30, 2011, Crédit du Nord Group posted 20.1% growth in its NBI and a 27.8% rise in its GOI.
In the first half of 2010, Crédit du Nord's consolidated accounts did not include the income of Société
Marseillaise de Crédit, which was acquired in September 2010. In addition, in compliance with IFRS,
the Group reported movements of provisions to PELs and CELs in its results, as well as the fairvalue valuation of its financial liabilities.
When adjusted for these items, Crédit du Nord Group's NBI increased 7.4% at June 30, 2011. GOI
rose 16.5% thanks to sound control of operating expenses (+2.6%). The restated cost-to-income
ratio was up 2.9 points to 62.6%
Crédit du Nord Group's consolidated cost of risk was EUR 89.8 million at June 30, 2011 compared to
EUR 89.2 million at June 30, 2010. Reported all in all loans granted by the Group, the level of
provisioning stands at 0.54%, down 11 basis points from the first half of 2010. At constant scope of
consolidation, the cost of risk was down 5.7%. This development was the result of our clients'
improved economic context, particularly for SMEs, compared to the first half of last year. However,
the improvement has slowed since Q4 2010.
Consolidated net income reached EUR 174.5 million, up 33.4% from June 30, 2010. On a
comparable basis, adjusted for variations in PEL/CEL provisions and for the fair value of financial
liabilities, consolidated net income rose 20.2% to EUR 150.4 million.
1
KEY FINANCIAL DATA:
11/10
change
Group consolidated figures
Net banking income
Operating expenses
Gross operating income
Operating income before corporate tax
Consolidated net income
Group consolidated figures
Deposits
Loans
Customer assets under management1
30/06/11
30/06/10
In EUR m
965.7
603.9
361.8
272.0
174.5
In EUR m
804.3
521.1
283.2
194.0
130.8
30/06/11
30/06/10
In EUR m
25,894.1
32,449.9
27,492.1
In EUR m
20,503.3
26,383.6
24,905.2
11/10
change
+20.1%
+15.9%
+27.8%
+40.2%
+33.4%
Not including
SMC,
PEL/CEL
provisions,
and fair value
of financial
liabilities
+7.4%
+2.6%
+16.5%
+27.2%
+20.2%
11/10
change
+26.3%
+23.0%
+10.4%
COMMERCIAL ACTIVITY
In a promising but still fragile economy, Crédit du Nord Group maintained strong growth momentum
in its activity and income.
Not including Société Marseillaise de Crédit, integrated in September 2010, the Group’s customer
base continued to grow, with new customers being won over by recommendations and housing
loans. In addition, Crédit du Nord continued to take advantage of its branch-opening programme: the
150 locations opened between 2004 and 2010 in promising areas brought in 16.7% of the Group's
new Individual and Professional customers in the first half-year. Giving these new customers the
products and services they need is a major growth driver for the years to come.
Meanwhile, Société Marseillaise de Crédit posted growth in activity and income for the first six
months of 2011. The win-over was dynamic on all three markets – Individual, Professional, and
Business customers. This regional bank is now a major growth driver with significant growth potential
on all markets, in particular thanks to the adoption of Crédit du Nord Group’s product range.
Also, the CSA’s competitive survey2 for 2011 ranked Crédit du Nord Group top of the major French
banks for overall satisfaction among individual customers. The Group also ranked first in the
business sector and among the best for professional customers.
Individual customers
Growth in the individual customer base continued in the first half of 2011 with more than 48,000
additional customers, an increase of 5.4% YoY. At June 30, 2011, the Group had 1.92 million
Individual customers, including 171,000 at Société Marseillaise de Crédit. The percentage of
customers using six or more products stayed at a high 48%.
Home loan origination remained healthy in a low interest rates context, despite a slowdown at the
end of the period. Total disbursements including SMC reached EUR 2.8 billion in the first half of
2011 – nearly twice that of the first half of 2010.
1.
2.
Not including custody services for third parties and restated for UCITS included in life insurance products.
This barometer was applied from March 1-31, 2011 by CSA, an independent organisation, from representative samples
of Individual customers in 11 banks on the market (4,564 people surveyed).
2
Close to 54,000 Livret A passbook savings were opened by our customers or their children in the
first half-year, which brings the number of such accounts marketed by Crédit du Nord Group banks
to 283,000 since its January 1, 2009 launch. At June 30, 2011, savings in this product totalled more
than EUR 1.4 billion, including SMC.
In life insurance, the good welcome for Etoile Cliquet 90, a diversified capital-guaranteed fund
eligible for vehicles in Account Units, has brought in EUR 176 million since January 1, 2011 on this
vehicle. At the same time, net inflows for the Antarius Duo and Antarius Sélection funds continued
with nearly 24,000 contracts sold in the first half of 2011. Finally, 60,000 provident fund and loss
insurance contracts were sold in the first six months of 2011.
Professional customers
The number of sight accounts rose 2.4% in the first half of 2011. The Professional customer base
now stands at 200,000, including 19,600 for Société Marseillaise de Crédit.
This result highlights the quality of Crédit du Nord Group’s specific offering, with dedicated advisers
in charge of both sales and the private side of customer relations, counter services in all branches
and an appropriate range.
The success of the Convention Alliance packaged offer did not disappoint, with nearly 61.2% of
customers using it. In addition, nearly one out of every two Professional customers has both
commercial and private relationships with Crédit du Nord Group.
The number of multi-company employee savings plans, created for small businesses, individual
entrepreneurs and independent professionals, continued its rapid expansion, growing 16.4% YoY.
Finally, the launch of Facilinvest, a renewable credit envelope, was a success, with more than 2,800
contracts sold.
Business customers
The Business customer base amounts to 46,100 customers, including 8,400 for Société Marseillaise
de Crédit. The number of business customers rose 3.5% YoY (not including SMC).
The recovery of corporate business investment was confirmed in the first half of 2011, driven by the
return of growth in industrial output. The resurgence of demand and the still-low interest levels led to
a 21.7% increase in disbursements of equipment loans for the first half-year.
New equipment leases also kept up a fast pace, up 22.1% in the first half of 2011. This activity reflects a strategic effort to develop corporate financing in this form. Consequently, total equipment
leases outstanding posted a 6.4% increase for the year.
After 2010, a year impacted by the consolidation of Business customers' financial situation, the first
half of 2011 marked a return to the use of short-term credit, particularly in the second quarter. Shortterm loans to companies were up 10.1% YoY.
****
Vincent Taupin, Group's Chief Executive Officer, stated:
"Crédit du Nord Group is maintaining dynamic growth and posting marked improvements in
income. This performance validates the quality of the Group's banking model, based on
proximity with customers and a balanced distribution of business portfolios among the
Individual, Professional and Business customer markets.
This momentum also confirms the relevance of the branch-opening programme carried out
between 2004 and 2010. It is a true growth driver for the years to come.
Société Marseillaise de Crédit, integrated in September 2010, is a first-rate bank in Southeast
of France, where it has a strong regional anchor and a recognised brand. Its acquisition
allows the Group to have a growth vector in an economically dynamic area with high
demographic potential."
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About Crédit du Nord Group:
Crédit du Nord Group was established through the grouping of some 80 regional banks that have been pooling
their respective strengths and talents for over one hundred and fifty years now. Today, the Group is constituted
of among others eight banks - Courtois, Kolb, Laydernier, Nuger, Rhône-Alpes, Tarneaud, Société Marseillaise
de Crédit and Crédit du Nord; and a brokerage firm, Gilbert Dupont.
The Group’s 10,000 employees and network of 936 branches serve 1.9 million individual clients, 200,000
professionals and 46,100 business clients.
All Crédit du Nord Group entities enjoy a large degree of freedom in the management of their activities, thereby
ensuring rapid decision-making and exemplary reactivity.
The strategy of the Group’s banks is based around three core aims:
•
to remain a reference bank in terms of the quality of its customer relationships,
•
to develop a high degree of individual and collective professionalism,
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to offer their customers state-of-the-art services and technologies.
The quality and strength of Crédit du Nord Group’s results is recognised by the market and through Standard &
Poor’s and Fitch’s long-term ratings of A+.
Crédit du Nord is a wholly-owned subsidiary of Société Générale.
Press contact:
Delphine Deleval
Groupe Crédit du Nord
Deputy Head of Communications
Tel: 33 1 40 22 27 77
[email protected]
Stéphanie Tabouis
Publicis Consultants
Director
Tel : 33 1 57 32 86 88
33 6 03 84 05 03
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