2006 Review of Operations Groupe Caisse d`Epargne

Transcription

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RA_FR_couv 210x10x210x187x297 (617x297) Quadri_ EXE VL et DD - fab HM
CAISSE NATIONALE DES CAISSES D’EPARGNE
50, avenue Pierre-Mendès-France – 75201 Paris Cedex 13 – France
Tel.: (33) 1 58 40 41 42 – Fax: (33) 1 58 40 48 00
Website: www.groupe.caisse-epargne.com
A limited liability company governed by a Management Board and a Supervisory Board
(Société anonyme à directoire et conseil de surveillance)
Head office: 5, rue Masseran – 75007 Paris – France
Share capital of €5,985,452,644.50
Registered in Paris under registration number: 383 680 220
REVIEW OF OPERATIONS
2006 G ROUPE CAISSE D’EPARGNE
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REPORT OF AN EVENTFUL YEAR
CONTENTS
1
ESSENTIALS
Message from the Chairmen . . . . . . . . . . . . . . . . . . . . 2
2006 key figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2006 highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Strategy and objectives . . . . . . . . . . . . . . . . . . . . . . . . . 8
Organizational structure
and corporate governance . . . . . . . . . . . . . . . . . . . . 12
2
3
4
CAISSE D’EPARGNE, RETAIL BANKING . . . . . . . . . . . 18
GROUPE CAISSE D’EPARGNE, THE SPECIALIST
BANK FOR REGIONAL DEVELOPMENT . . . . . . . . . . . 34
THE SPECIALIZED SUBSIDIARIES . . . . . . . . . . . . . . . 48
Commercial banking . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Investment banking . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
5
6
7
8
SKILLS & RESOURCES . . . . . . . . . . . . . . . . . . . . . . . . . 78
RISK MANAGEMENT,
COMPLIANCE & SECURITY . . . . . . . . . . . . . . . . . . . . . 88
SOLIDARITY AND SOCIAL COMMITMENT . . . . . . . . . 94
SIMPLIFIED FINANCIAL STATEMENTS . . . . . . . . . . 108
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Tel.: (33) 1 58 40 41 42 – Fax: (33) 1 58 40 48 00
CONTENTS
1
ESSENTIALS
2006 key figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2006 highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2
3
4
5
6
7
8
RISK MANAGEMENT,
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Corporate structure
Groupe Caisse d’Epargne: core business lines
440 local savings
companies (LSC)
3.4 million cooperative
shareholders
Fédération Nationale
des Caisses d’Epargne
80% (shares)
Caisses
d’Epargne
(1)
20% (CCIs)
100%
COMMERCIAL BANKING
(at December 31, 2006)
SPECIALIST BANK FOR
REGIONAL DEVELOPMENT
RETAIL BANKING
Individual customers
Professional customers
Businesses
Local authorities
and institutions
Social economy
and social housing
Public-private partnerships
French overseas territories and the international market
Individuals
Professionals
Businesses
Local authorities
Caisse Nationale des Caisses d’Epargne
34.44%
COMMERCIAL BANKING
Banking
networks*
Insurance
Banque Palatine
Financière OCÉOR2
Banque BCP
(France3 – Luxembourg4)
CIH (Morocco)5
Ecureuil Assurances IARD
CNP6, Ecureuil Vie7
INVESTMENT AND PROJECT
BANK – NATIXIS8
Corporate and Investment Banking
Insurance
Life insurance
General insurance
Health/Provident
insurance
Real Estate
Investment and Project
Bank – Natixis(1)
Financing solutions
Transactions/sales
Development
and promotion
Surveying and valuation/
property management
Asset Management
Private Equity and
Private Banking
(1) The Caisse Nationale des Caisses d’Epargne and the Banque Fédérale des Banques Populaires each hold a 34.44%-interest
in Natixis, which itself owns 20% of the capital of the Caisses d’Epargne and of the Banques Populaires in the form of CICs.
(2) Custody, electronic banking, insurance, guarantee, employee benefits, consumer credit.
(3) Credit insurance, factoring, corporate information, other receivables management.
Services
Specialized
financial
institutions
Crédit Foncier
GCE Habitat
GCE Immobilier
Recevables Management
Financial Guaranty
* Other than the Caisses d’Epargne.
(1) Cooperative Investment Certificates (CICs) representing 20% of the capital of the Caisses d’Epargne entitling holders
to receive dividends but including no voting rights.
(2) The Financière OCÉOR holding company owns the Group’s investments in its overseas banks.
(3) 50.1% owned by the Caisse d’Epargne Ile-de-France Paris and 30% owned by the CNCE.
(4) 50.1% owned by Financière OCÉOR and 30% owned by the CNCE.
(5) Indirect interest of approximately 25% held by GCE Maroc (OCÉOR).
(6) 15.76% held by Sopassure, a 49.98% subsidiary of the CNCE.
(7) Ecureuil Vie became a subsidiary of CNP Assurance in February 2007.
(8) The Caisse Nationale des Caisses d’Epargne and Banque Fédérale des Banques Populaires each own a 34.44%-stake in
Natixis, which itself owns 20% of the capital of the Caisses d’Epargne and Banques Populaires in the form of Cooperative
Investment Certificates (CICs).
Corporate and
investment banking
Asset management
Private equity
and Private banking
Services(2)
Receivables management(3)
Financial guaranty
Principal commercial banking networks
A MULTI-BRAND, MULTI-BUSINESS, FULL SERVICE UNIVERSAL BANK
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Corporate structure
440 local savings
companies (LSC)
shareholders
80% (shares)
Caisses
d’Epargne
(1)
20% (CCIs)
100%
COMMERCIAL BANKING
SPECIALIST BANK FOR
RETAIL BANKING
Businesses
Local authorities
and institutions
Social economy
and social housing
Individuals
Professionals
Businesses
Local authorities
34.44%
COMMERCIAL BANKING
Banking
networks*
Insurance
Banque Palatine
Financière OCÉOR2
Banque BCP
CIH (Morocco)5
CNP6, Ecureuil Vie7
BANK – NATIXIS8
Insurance
Life insurance
General insurance
Health/Provident
insurance
Real Estate
Bank – Natixis(1)
Financing solutions
Transactions/sales
Development
and promotion
property management
Asset Management
Private Equity and
Private Banking
Services
Specialized
financial
institutions
Crédit Foncier
GCE Habitat
GCE Immobilier
Financial Guaranty
Corporate and
investment banking
Asset management
Private equity
and Private banking
Services(2)
Financial guaranty
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Groupe Caisse d’Epargne, one of the largest retail
banking institutions in France with the networks
of the individual Caisses d’Epargne, Crédit Foncier,
Banque Palatine, OCÉOR and its array of specialized
subsidiaries, has now become a front-ranking
full-service, universal bank. Combining economic
performance with social utility is a vocation
and a source of expertise that have set Groupe
Caisse d’Epargne apart from other banking
institutions from the moment of its creation.
Groupe Caisse d’Epargne enjoys a high profile in all the different regions
of metropolitan France and French overseas territories, serving a clientele
of individual and professional customers for whom it develops, through its different
activities and subsidiaries, a comprehensive range of savings products, financing
solutions and banking services. The Group also acts as a partner of regional
development by offering local authorities, the hospital sector, social housing
organizations, entities active in the social economy, real estate professionals and
local businesses a comprehensive array of products and services designed to finance
their projects, simplify their management and optimize their investments.
For the development of its activities related to corporate and investment
banking, asset management and financial services, GCE now draws on
the expertise of Natixis, its joint banking venture with Groupe Banque Populaire.
Boasting shareholders’ equity of €20bn, net income of €3.8bn and credit
ratings confirmed at the highest level awarded to French banks, Groupe Caisse
d’Epargne enjoys a particularly robust financial profile.
With a total of almost 56,000 employees, Groupe Caisse d’Epargne is active
in all the segments of the banking industry, serving all types of clientele and
present in the principal international financial markets. It runs a network of
4,700 branches in France, and boasts a total of 26 million customers.
Its ambition: to play an active role in the consolidation of the European
banking industry and step up its commitment in favor of social progress, the very
ideal that inspired the creation of the French savings banks.
Credit ratings: AA/Aa2/AA.
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CHAPTER
ESSENTIALS
MESSAGE FROM THE CHAIRMEN
I
n 2006, Groupe Caisse d’Epargne took a decisive step in the transformation of its structures.
We can now look back with pride and see just how far we have traveled since 1999. Although it is
true that we have enjoyed a number of successes in recent months and that the Group has been
under the constant glare of the media spotlight, we must not lose sight of the fact that the major
operations completed in 2006 are, in fact, but the culmination of a long maturing process.
Since the 1999 reform, Groupe Caisse d’Epargne has changed both in nature and in size. Having
become a true full-service, universal bank, the Group has managed continuously to enhance the skills
and expertise that represent its principal assets. As a result, the efforts we have made to restructure
our organization allow us today to meet the needs of all types of clientele without compromising
our profitability criteria. Thanks to the active contribution of all our employees, the Group’s net
banking income rose by 13.4% in 2006 to reach a total of €11.3 billion, following what had already
been an outstanding year in 2005. Net income (after minority interests) also enjoyed substantial
growth, reaching a total of €3.8 billion (including exceptional items). Our financial strength, reflecting
the changes brought about in our Group structure, seems more satisfactory than ever before thanks to
consolidated equity of €20 billion allowing Groupe Caisse d’Epargne to boast one of the best Tier One
ratios enjoyed by a French banking institution.
Our aim now is to pursue this ongoing development, to improve our performance still further, and to
reassert the identity of Groupe Caisse d’Epargne at a time when competition in the European banking
industry is growing in intensity. In this respect, of course, the creation of Natixis represents a decisive
development for the future of the Group. Launched in March 2006 and concluded in December the
same year with a major stock market operation, this initiative was handled with a degree of efficiency
and professionalism that fully deserves our praise. Our teams, in constant liaison with their
counterparts from the Banque Populaire Group, managed to bring this project to a successful
conclusion despite the added complication that it pioneered a new type of alliance between two major
cooperative banks.
A front-ranking player in the areas of corporate and investment banking, asset management and
financial services, Natixis is destined to play a decisive role in the consolidation of the European
banking industry. Above and beyond the strategic ambition embodied in this initiative, Natixis will also
prove to be a major springboard for the continued growth of Groupe Caisse d’Epargne. Indeed, the
powerful distribution network of the French savings banks will now be able to tap into the resources
of production mills equal to their needs. All our customers will benefit from the products utilizing
the expertise of our new subsidiary.
An innovative structure allowing Groupe Caisse d’Epargne harmoniously to blend its cooperative model
with a more immediate access to the financial markets, Natixis represents a further step in the
achievement of our strategic objectives. This operation, apart from the prospects it opens up for future
growth, will also have a considerable impact on the organization and corporate governance of Groupe
Caisse d’Epargne to the extent it has allowed us completely to redefine our partnership with
Caisse des Dépôts. 2007 will therefore represent the beginning of a new phase in the relationship
between the French savings bank group and its historic partner.
2
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The sheer scale of the success enjoyed with Natixis confirms the Group in its ambition to reconcile growth
with economic performance. It is in this spirit that we have pursued our efforts to merge individual
Caisses d’Epargne, marked in 2006 by the creation of the Caisse d’Epargne de Bourgogne Franche-Comté
and the launch of nine other merger projects. These developments – a logical continuation of the history
of Groupe Caisse d’Epargne itself – will significantly help to consolidate our role as a local and regional
banking institution. With stronger savings banks as far as human resources and their capital funds
are concerned, the Group will be in a strong position to provide its services more efficiently to a customer
base expressing an increasingly wide variety of needs.
To provide efficient support for this consolidation, Groupe Caisse d’Epargne has decided to put
the convergence of all the savings banks’ IT resources to a single information system at the very heart
of its strategy for the next three years. This project will not only guarantee enhanced technical
and commercial performance but also pave the way to substantial savings in operating expenses.
Alongside this major initiative, our aim is also to anticipate changes in the banking industry with respect
to both our major operational challenges and the expectations of our clientele. To do this, it is vital
to satisfy the current needs of the French economy in terms of investment. This is why the Group intends
to focus its efforts in 2007 on the real estate market: by creating a powerful core business in this area,
we will be in a position to strengthen the ties forged over the years with our customers and to accompany
new clients in the realization of their projects. We also intend to actively pursue the expansion of our
insurance business.
Jacques Mouton
(left)
Charles Milhaud
(right)
In this area, as well as in its other activities, Groupe Caisse d’Epargne has set itself an ambitious
objective: to achieve a high level of operational efficiency allowing it to combine rapid growth with a high
degree of profitability. This will allow us to capitalize fully on our identity as a socially responsible bank
and to pursue our actions in the area of social solidarity via, in particular, the funding of local and social
economy projects and the activities of the Caisse d’Epargne Foundation for Social Solidarity.
The successes achieved by Groupe Caisse d’Epargne in recent months have reinforced our status as
a front-ranking player in the banking industry, enhanced our visibility and heightened the expectations
of our customers and partners. Thanks to the active commitment of all its employees, the Group
– we are certain – shall both satisfy and exceed these expectations. We fully intend to build our future
on our continued ability to surprise.
Charles Milhaud
Jacques Mouton
Chairman of the Management Board
of the Caisse Nationale des Caisses d’Epargne
Chairman of the Supervisory Board
3
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CHAPTER
ESSENTIALS
2006 KEY FIGURES
GROUPE CAISSE D’EPARGNE
EARNINGS TRENDS
in billions of euros
Pro forma 2004
French GAAP
2005
2006
2006/2005
9.7
2.6
2.4
1.8
18.0
10.0
2.3
2.5
1.8
20.0
11.3
2.8
5.2
3.8
20.0
13%
25%
106%
115%
0.3%
Net banking income
Gross operating income
Income before tax
Net income (after minority interests)
Consolidated equity (1)
(1) Including Reserve for General Banking Risks in 2004, and including other comprehensive income (OCI) in 2005 and 2006.
(2) RoE determined on the basis of average equity, excluding OCI;
in 2006, RoE adjusted for non-recurring items (related, in particular,
to the creation of Natixis).
(3) Recorded under French GAAP in 2005.
TIER ONE RATIO:
8.7% IN 2006
CNCE GROUP
EARNINGS TRENDS
in billions of euros
Pro forma 2004
French GAAP
2005
2006
2006/2005
4
0.8
1.2
0.9
11.5
4.4
0.9
1.5
1.1
13.2
5.4
1.2
4.3
3.3
10.6
23%
34%
195%
192%
– 20%
Net banking income
Income before tax
Net income (after minority interests)
Consolidated equity(1)
(1) Including Reserve for General Banking Risks in 2004, and including other comprehensive income (OCI) in 2005 and 2006.
(2) RoE determined on the basis of average equity, excluding OCI;
in 2006, RoE adjusted for non-recurring (related, in particular,
to the creation of Natixis).
TIER ONE RATIO:
4
(3) Recorded under French GAAP in 2005.
8.9% IN 2006
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OUTSTANDINGS OF GROUPE CAISSE D’EPARGNE
An excellent year for loans
Group outstandings advanced 13% to reach a total of
€230 billion, driven by strong demand for real estate loans
and consumer credit.
Customer savings remain stable following
the incorporation of Natixis
The outstandings of the Commercial Banking division enjoyed
strong 6% growth to €325 billion buoyed up by the extremely
good performance of insurance activities and the sharp increase
in demand deposits following the launch of interest-bearing
current accounts. The outstandings of the Investment Banking
division declined in line with the inclusion of 34.44% of IXIS CIB
outstandings, reflecting the Group’s interest in Natixis.
IXIS AM Group delivers an excellent performance
in asset management
Assets under management rose by 13% (at constant euro
rates). This growth reflects the combined impact of positive
net fund inflows and good market performance, despite
a negative currency impact following the sharp depreciation
in the value of the dollar during the year.
CACEIS, leader for institutional custody services
Assets under custody reached a total of €1,787 billion
at the end of 2006, a 16% year-on-year rise. CACEIS
confirms its ranking in the top 10 custodians worldwide.
(1) Data for 2005 relate to IXIS Investor Services and Crédit Agricole
Investor Services.
OTHER DATA
4,700 BRANCHES IN 2006
CREDIT RATINGS:
AA /Aa2 /AA
(STABLE OUTLOOK)
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ESSENTIALS
2006 HIGHLIGHTS
The Caisses d’Epargne
now own 100% of the CNCE
In accordance with the memorandum of
understanding signed in June 2006, the Caisse
des Dépôts has transferred its 35% interest in
the capital of the CNCE. The individual Caisses
d’Epargne now own 100% of the equity capital
of the CNCE, thereby completing an historic step
for the Group, which has now obtained its full
independence. In parallel with this reorganization
of its capital structure, however, new industrial
partnerships are being forged with the Caisse
des Dépôts.
bank. Nine other merger projects have been
initiated: Champagne-Ardenne and Lorraine;
Flandre, Pas-de-Calais and Pays du Hainaut;
Alpes and Rhône-Alpes Lyon; Aquitaine-Nord,
Pays de l’Adour and Poitou-Charentes; Centre-Val
de Loire and Val de France-Orléanais; Ile-de-France
Nord, Ile-de-France Ouest and Ile-de-France Paris;
Martinique and Provence-Alpes-Corse; BasseNormandie and Haute-Normandie; Bretagne and
Pays de la Loire. 2007 and 2008 will consequently
see the creation of new major regional banks,
enjoying more extensive commercial resources
and a stronger financial base.
New shared premises
The Group organizes its real estate division…
The employees of the CNCE, along with the staff
of several Group subsidiaries, moved into their
new offices on the banks of the Seine, not far from
the French Finance Ministry in Bercy and the Lyon
and Austerlitz railway stations.
The Group has begun to develop its real estate
strategy with a view to creating a major listed core
business specializing in real estate services and
property financing solutions. In 2006, two structures
were created:
• GCE Immobilier, an organization dedicated to real
estate professions and services (excluding banking
activities and social housing) in the competitive and
semi-private sector;
• GCE Habitat, an entity specializing in social housing,
nursing homes and healthcare institutions.
New organizations
• Two major divisions have been created within
the Group – Retail Banking and the Specialist Bank
for Regional Development – with a view to improving
commercial efficiency.
• The risk management system has been the subject
of unprecedented tightening up at Group level.
• At the CNCE, a Management Committee has
been created within the Management Board.
Several specialized committees have been set up
to strengthen cross-functional management
processes.
• The quality approach has been given a fresh boost
in order to create new dynamics and boost overall
performance.
Merger between individual
Caisses d’Epargne for greater efficiency
and profitability
The Caisse d’Epargne de Bourgogne and
the Caisse d’Epargne de Franche-Comté merged in
2006 to expand their presence as a major regional
6
… enhances its private equity resources…
Working alongside regional structures,
GCE Capital is actively pursuing its mission
of reinforcing the Group’s private equity and
LBO/LBMO activities, and will set up a fund
of funds activity.
… and gives shape to its partnership
with MACIF and MAIF
CEMM, a holding company owned by the CNCE
(50%) and by the MACIF and MAIF mutual
insurance companies (with a 25% stake each),
has been set up to assume responsibility for joint
projects, to manage equity interests and coordinate
the partnership existing between the three groups.
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Moving towards a single IT system
Performance SI (IT Efficiency), a major project
designed to create a single information system for
Groupe Caisse d’Epargne, has now been launched.
This strategic decision, of essential importance
for boosting the competitiveness of the bank’s
operations, represents a new step in improving
service quality and operational excellence.
International: targeted operations
for retail banking
Natixis in action: on time, in full!
It did not take more than six months to bring
this industrial project – of major importance
for the future growth of Groupe Caisse
d’Epargne – to a satisfactory conclusion.
Created legally on November 17, 2006, the new
Investment and Project Bank jointly owned by
Groupe Caisse d’Epargne and the Banque
Populaire group made its successful debut on
the Paris Bourse on December 5, 2006.
Natixis has already attracted more than
2.86 million individual shareholders.
The largest operation in the French financial
market in 2006 in terms of value, it was also
the banking industry’s most attractive
investment since 1999. Nearly 670,000 Groupe
Caisse d’Epargne customers – including almost
390,000 Caisses d’Epargne cooperative
shareholders – have bought shares in Natixis.
Creativity, innovation, customer loyalty
The first major bank to pay interest on current
accounts, Caisse d’Epargne continued to bank
on innovation in 2006 to distinguish itself from its
competitors.
• It joined the S’Miles loyalty program, becoming
the program’s exclusive banking partner. More than
1.6 million Caisse d’Epargne customers adopted it
in the space of just four months.
• It launched a package of personal care services in
partnership with the MAIF, MACIF and MGEN
mutual insurance companies.
• It became one of the four banks entitled to issue
multi-purpose employment service checks
(known as CESU in France), in partnership with
Accor Services.
• It has developed positions in the complementary
health insurance market.
• It has launched movo, the first service enabling
individual customers to send and receive money
with their mobile phone.
Four operations were concluded during the year:
• the acquisition of an 80% interest in
the French and Luxembourg subsidiaries of
the Portuguese bank Millennium bcp;
• the creation of Banco Primus in Portugal,
a bank specializing in the restructuring of loans
with mortgage guarantees in which Crédit
Foncier holds a 35% interest;
• an increased equity interest in Banca Carige in
Italy – 15% of the capital held by the CNCE – and
the creation of a joint subsidiary in Italy
specializing in consumer credit;
• the acquisition, in partnership with the Caisse
de Dépôt et de Gestion, of an interest in
Crédit Immobilier et Hôtelier (CIH) in Morocco,
a financial institution specializing in banking
services for the family.
10,000 PELS funded since 2001
Tangible proof of the commitment of the
Caisses d’Epargne to social solidarity,
2,718 local and social economy projects (PELS)
were financed in 2006 for an aggregate total
of nearly €54 million. Since 2001, the Caisses
d’Epargne have supported more than 10,000 PELS,
providing funding for a total of €240 million.
The Caisses d’Epargne Foundation
for Social Solidarity: new targets
to combat exclusion
Created in 2001 and committed to the fight
against all forms of exclusion, the Foundation
has become, in terms of the number of its
employees, one of the largest public-interest
foundations in France.
To celebrate the fifth anniversary of its creation,
it has set itself three key targets for 2010 and
beyond:
• 10,000 beds for the dependent elderly (current
capacity is for 4,800 individuals);
• 10,000 individuals provided with home support
services (6,300 today);
• 10,000 young people supported by the
campaign against illiteracy, Savoirs pour réussir
(“Knowledge for Success”).
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ESSENTIALS
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Groupe Caisse d’Epargne has very rapidly transformed, expanded and
reinforced its structures since the adoption of the reform bill of 1999.
Its continued growth is driven by its multi-clientele, multi-business,
multi-brand business model while its operational efficiency is constantly
improving. The Group has more than doubled the size of its consolidated
equity since 1999 and its results have been multiplied by a factor of more
than three. With its comprehensive range of banking business lines and
activities, its considerable financial strength and a freedom of action
enhanced by the stock market listing of Natixis, Groupe Caisse d’Epargne
boasts major advantages enabling it to reassert its status as one of the
front-ranking players actively involved in the competition between
banking institutions in the European market.
STRATEGY AND OBJECTIVES
T
he year 2006 marked an historic
turning point in the history of Groupe
Caisse d’Epargne: it became fully
independent following the withdrawal
of Caisse des Dépôts from the capital
of the CNCE (1) and, with Natixis, it
boasts a stronger wholesale bank and a powerful
listed vehicle that considerably improves its
prospects for future growth.
Headway made in these areas is fully in line with
the 2004-2007 strategic plan aimed at achieving
three key objectives:
• to combine sustained growth with high levels of
profitability;
• to achieve a high level of quality and operational
efficiency;
• to make the Group’s commitment to society a factor
that distinguishes it from other financial institutions.
The individual Caisses d’Epargne, which now own
100% of the CNCE, represent the foundations upon
which the Group is built. All these new advantages
will be put to full use for their benefit.
The strengthening of the sales teams and the
measures taken to enhance their efficiency, the new
impulse given to the quality approach, the organization
of Commercial Banking activities into two major
divisions – Retail Banking and the Specialist Bank
for Regional Development – are all different vectors
for future growth and enhanced performance.
The mergers completed, or currently in progress,
between a number of individual savings banks, the
work done to facilitate convergence towards a single
information system, the optimization of industrial
and administrative platforms, the strengthening
of partnerships with Natixis along with the MACIF
and MAIF mutual insurance companies will allow
the Group to move more rapidly from the stage
of objectives to that of tangible results.
(1) December 18, 2006 and January 29, 2007.
8
Commercial Banking
• Retail Banking: leadership, performance,
and innovation
Retail Banking chiefly covers the private
individual and professional customer markets;
it is the core business activity of Caisse d’Epargne
and should make a vital contribution to the ongoing
development of the Group.
Caisse d’Epargne boasts an extremely large
customer base, and has begun to tap this potential
with the extension of banking services for savers,
for young people and self-employed professionals.
It is also taking steps to enhance the loyalty of
its customers by improving the quality of their
welcome, by being receptive to what they have to
say and providing appropriate advice, and by
adopting a segmented approach to their needs that
combines the industrialization of processes with
the customization of relationships. The decision
to pay interest on current accounts and to join
the S’Miles program fully meet these objectives
of expanding the use of banking services and
ensuring customer loyalty.
Interest-bearing
current accounts
and the S’Miles
loyalty program
Caisse d’Epargne also boasts major growth
potential in certain market segments: unregulated
savings products, private asset management,
insurance, consumer credit, personal care services,
etc. The Group has already organized its offerings
in the area of private asset management and real
estate loans. It has also set up a powerful industrial
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platform dedicated to consumer credit allowing it
to increase the pace of its development in this area.
• The Specialist Bank for Regional
Development: speeding up the pace of growth
With the individual Caisses d’Epargne deeply
rooted in their particular regions and enjoying a
privileged understanding of the grassroots dimension
and strong ties with local decision-makers,
the Specialist Bank for Regional Development
emphasizes the Group’s local presence and knowhow at the service of public and private entities
involved in the life of the regions. The bank offers
its know-how to local authorities, organizations
specializing in social housing and the social economy,
businesses, real estate professionals and all the
partners of complex operations such as public-private
partnerships (PPP) or joint development initiatives.
As joint leader for the financing of local authorities
and institutions, Caisse d’Epargne intends to
extend its lead in this area by leveraging the offerings
developed, in certain cases, in association with Natixis
and Crédit Foncier: structured finance solutions,
dynamic debt management, asset allocation, or
services such as the multi-purpose employment
service checks (known as CESU), a promising new
market where Caisse d’Epargne has successfully
established itself in partnership with Accor Services.
The Group has developed a sophisticated range
of investment and financing solutions in its capacity
as the leading banking partner of the social
housing movement. It boasts a strong presence in
the governance bodies of the social housing
organizations and it is also one of the leading
private HLM social housing groups with more than
170,000 social housing units under management.
The Group aims to further consolidate the three
dimensions of its activities in this area.
Caisse d’Epargne, which is already the largest
financial institution providing services for protected
individuals, is simultaneously pursuing a dynamic
policy aimed at reinforcing its presence among
organizations active in the social economy:
associations, mutual insurance companies and
foundations, notably those specializing in education
and health.
As the largest private operator in regional private
equity funds, the Group provides small- to mediumsized companies with a wide range of solutions in the
areas of long-term financing, company transmission
or buyout. Thanks to the expertise of the Caisses
d’Epargne and Banque Palatine, the Group aims to
become a premium banking partner for corporate
customers by basing its action, in particular,
on the deployment of Trade, the international trade
financing program, and on an offering enriched with
new services developed by Natixis.
• Insurance
After life insurance, cover for fire, accident &
miscellaneous risks, and medical & health
insurance, the Group developed in 2006 its
presence in the market for complementary health
insurance. It also started operations in the
promising market for personal care services within
the framework of its partnership with the MACIF
and MAIF mutual insurance companies.
This partnership should also expand into other
areas such a long-term car rentals or legal
protection.
• Real estate
With the creation of a real estate division, the
Group wants to position itself as a major player in
this business area; it will be able to improve
its overall support for local authorities in their
development projects but also expand its offering
aimed at individual customers. In this respect,
GCE Immobilier will be an additional advantage,
enabling the Group to forge partnerships with
property developers and real estate investors.
The subsidiary is already the reference shareholder
of Arthur l’Optimist, the fifth largest network
specializing in real estate transactions in France.
As far as public-private partnerships are
concerned, the Group is aiming to capture a 30%
share of the market.
170,000
More than
social housing units under management
• New key advantages with Natixis
The Retail Banking core business and the Specialist
Bank for Regional Development will both directly
benefit from the contribution made by Natixis, with a
more extensive offering and lower production costs.
The Caisses d’Epargne will continue to offer products
and services designed for them by the subsidiaries
transferred to Natixis; they will also benefit from new
and complementary expertise derived from companies
originally owned by the Banque Populaire group.
The range of products and services will be enlarged,
notably in the areas of employee savings, equipment
leasing for SMEs, receivables management, and
mutual funds. Customers will enjoy access to products
that are both more competitive and more efficient
thanks to scale effects making it possible to amortize
high development costs.
9
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ESSENTIALS
Natixis: an innovative industrial project,
creating new value for the Group
With Natixis, Groupe Caisse d’Epargne is giving
itself the means it needs to step up the pace
of its growth in corporate and investment banking,
asset management and financial services, areas
in which size and an international presence are two
essential factors.
The Caisse Nationale des Caisses d’Epargne
and the Banque Fédérale des Banques Populaires
each hold a 34.44% stake in Natixis, which,
as a result, enjoys the support of two major local
cooperative banking networks. Natixis itself owns
a 20% stake in each of these two networks in
the form of Cooperative Investment Certificates
(CICs) (1) issued by the Caisses d’Epargne and
Banques Populaires, a fact that further strengthens
the ties between the two banking groups.
By combining their highly complementary
wholesale banking activities, the two partners have
given birth to a major new player in the international
banking arena while simultaneously retaining two
factors that have been key to their success, namely:
their strong regional presence and the ability to
make decisions as close as possible to the local
level.
For Groupe Caisse d’Epargne, this strategic
initiative represents an industrial project capable
of creating new value, which will simultaneously
give its local customers access to a more extensive
offering and range of expertise and benefit from
the development of clienteles specific to the
corporate and investment banking business among
major corporations and institutionals.
Thus, Groupe Caisse d’Epargne is acquiring
a new dimension and giving itself the listed vehicle
it needs to continue its growth: from the very
outset, Natixis is the 4th largest listed French bank
with a market capitalization in excess of €22 billion
(at April 3, 2007).
(1) The CICs entitle their bearers to dividends
but confer no voting rights.
(2) 2006 pro forma.
10
With a total of almost 23,000 employees,
net banking income of €7.3 billion (2) and shareholders’
equity (excluding minority interests) of €17.5 billion,
Natixis is one of the leading players in its sector,
commanding front-ranking positions in its core
business activities in France, Europe and around
the world.
Natixis boasts a particularly strong customer
base thanks to the outstanding match between
IXIS, which was extremely active with institutionals,
and Natexis Banques Populaires, historically
enjoying a strong presence among major
corporations. The new company pursues its
activities in five key areas.
In the
15
TOP
worldwide for asset
management
• Corporate and investment banking
Natixis is a front-ranking player in the European
market and one of the leading operators in France.
It combines the expertise of IXIS Corporate &
Investment Bank in the capital markets with the
skills of Natexis BP in the area of financing
solutions, notably structured finance and
commodities. It boasts strong positions in Europe
and in the United States.
• Asset management
Natixis is a pre-eminent Franco-American
specialist, with assets under management worth
a total of €583 billion at the end of 2006. It is one
of the world’s top 15 asset management specialists,
boasting well-established positions for standard
products as well as for extremely sophisticated
solutions designed for institutional customers.
• Private equity and private banking
In the area of private equity funds, Natixis is
the leading French player in the medium-sized
enterprise segment, with more than €3.2 billion
invested at the end of 2006, more than one half
of which invested for third parties. It manages
funds worth approximately €14 billion on behalf of
wealthy private individuals.
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3
No.
The cooperation agreements with the Portuguese
bank Millennium bcp and the acquisition of its French
and Luxembourg subsidiaries with their strong ties
with customers of Portuguese origin, the purchase
of an equity interest in Crédit Immobilier et Hôtelier
(CIH) in Morocco, the creation with Banca Carige of
a joint consumer credit subsidiary in Italy… are all
examples of the realization of these international
ambitions in 2006.
worldwide in credit insurance
• Services
Natixis commands front-ranking positions in
the areas of custody services for retail and
institutional customers (no.10 worldwide), electronic
banking and payment systems, life insurance and
cover for fire, accident and miscellaneous risks,
consumer credit, financial securities and guarantees
as well as employee benefits.
• Receivables management
Natixis is a leading player worldwide with
a comprehensive array of services designed for both
French and international companies: credit insurance
(no.3 worldwide), financial information, factoring,
and receivables management.
International: new ambitions
Having set up the organization it needs and
further strengthened its resources, Groupe Caisse
d’Epargne is now in full marching order, ready
to begin a new stage in its growth outside its
domestic French market.
In the area of commercial banking, the Group
has already developed a business specializing
in public authority financing in Switzerland, Italy
and the Netherlands.
Crédit Foncier has opened offices in Belgium,
the UK (London) and Portugal where it is a partner
of the newly created Banco Primus.
More generally, Groupe Caisse d’Epargne is
determined to play an active role in the consolidation
of the European banking industry, to export its
know-how and seize the growth opportunities
emerging in Europe, notably in the Mediterranean
basin, which it has made a priority objective for its
retail banking business.
Social commitment and solidarity:
a leading private player in the social sector
Beyond the performance of its core business
activities, the Group also remains faithful to
the ideal of social progress that presided over
the creation of the first French savings bank.
More than ever before, it is determined to be a
socially responsible banking institution capable
of providing fresh answers to the major challenges
facing society such as retirement savings, the
alleviation of dependency, the promotion of social
housing, the fight against social exclusion, etc.
Groupe Caisse d’Epargne, the historic partner
of the HLM subsidized housing movement, is the
only institution involved in all areas of the social
housing sector – of which it is the largest private
banker – in addition to being an active operator
of social housing organizations. The Group also
plays a major role in financing healthcare
infrastructures and in providing assistance to
vulnerable or dependent individuals.
By helping to create new jobs, promoting
economic and social integration, continuing its
drive to combat banking exclusion, illiteracy, and
the dependency of elderly or vulnerable people,
the Group strives every day to build a more
mutually supportive society.
Through the financing of local and social economy
projects – the écureuil & solidarité PELS – whose
annual funding envelope increases in pace with
the results of the Caisses d’Epargne, and through
the activities of the Caisses d’Epargne Foundation
for Social Solidarity actively engaged in the struggle
against dependency and exclusion, the Group lends
its support to economic and social players actively
committed to strengthening the essential cohesion
within society.
The Group is also involved in sustainable
development and helps its customers to develop
their own actions in this area, with a view
to becoming their benchmark banking partner.
These are just some of the achievements that
make Groupe Caisse d’Epargne a unique banking
institution, different by virtue of its active
commitment to society.
11
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ESSENTIALS
ORGANIZATIONAL STRUCTURE
AND CORPORATE GOVERNANCE
Mutual benefit structures
The Caisses d’Epargne, which represent the very
foundations upon which the Group is built, are
regional cooperative banks. 80% of their share
capital is owned by local savings companies, which
also hold 100% of all voting rights. Natixis, the joint
venture between Groupe Caisse d’Epargne and
the Banque Populaire group, owns the remaining
20% of the share capital in the form of Cooperative
Investment Certificates (CICs), which represent
a portion of net assets and entitle bearers to receive
dividends but confer no voting rights.
Every customer of an individual Caisse d’Epargne
– whether a private individual or legal entity – may
acquire shares in a local savings company and
thereby become a “cooperative shareholder”.
To ensure a true local relationship with the cooperative
shareholders, there are at least seven local savings
companies affiliated to each individual savings bank.
Each local savings company invites its cooperative
shareholders to an Annual General Meeting.
The cooperative shareholders elect a board of
directors, which then appoints a Chairman
responsible, in particular, for representing the local
savings company at the Annual General Meeting
of Caisse d’Epargne. It is during this meeting that
the amount of dividend paid on the shares and CICs
is decided every year.
The local savings companies also represent a
forum for discussions and the sharing of information.
The Caisses d’Epargne regularly use them to organize
meetings devoted to the everyday preoccupations of
their cooperative shareholders.
At December 31, 2006, the Caisses d’Epargne boasted
a total of 3.4 million cooperative shareholders grouped
within 440 local savings companies.
Each Caisse d’Epargne is administered by a
Management Board of between two and five
members, which is itself supervised by a Steering
and Supervisory Board (COS) comprised of
18 members, including a majority of local savings
company representatives.
12
The regional Caisses d’Epargne have owned 100%
(CNCE) since January 29, 2007, when they received
from the Caisse des Dépôts the 35% interest this
institution previously held in the CNCE.
The Caisse Nationale des Caisses d’Epargne
The CNCE is a financial institution having the legal
status of a limited liability company (French société
anonyme) governed by a Management Board and
a Supervisory Board. It has three main roles and
responsibilities within Groupe Caisse d’Epargne.
• As the central institution of the Group, it represents
the credit institutions affiliated to it in dealings with
the supervisory authorities and, within this framework,
makes sure that the legal and regulatory provisions
specific to these institutions are applied. It takes all
necessary steps to preserve the cohesion of the
network of individual Caisses d’Epargne and generally
supervises the proper management of the affiliated
entities.
The CNCE also takes all necessary measures to
guarantee the liquidity and solvency of the affiliated
entities.
It defines the products and services distributed
to customers, and coordinates the commercial
policy. It promotes the Group’s common interests in
terms of human resources, and approves the
appointment of senior management staff in the
entities affiliated to it.
• As the holding company of the Group, the CNCE
carries out activities related to its status as head
of the Group. It owns and manages its equity
interests in the subsidiaries.
It also defines the Group’s strategy and
development policy.
• As the banker to the Group, the CNCE is
responsible, in particular, for the centralized
management of any surplus funds held by the
regional savings banks and for proceeding with any
financial transactions useful for the development
and refinancing of the Group. It also offers services
of a banking nature to Group entities.
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Corporate governance of the CNCE
The CNCE is administered by a Management
Board consisting of between two and five members.
Its Supervisory Board is comprised of 20 members.
Since the withdrawal of Caisse des Dépôts, 18 seats
are reserved for representatives of the individual
Caisses d’Epargne; the remaining two seats are
reserved for representatives elected directly by the
network employees.
The Supervisory Board of the CNCE also
includes six non-voting members (censeurs): one
senior executive from the Caisses d’Epargne
network, one representative from Natixis, one from
the Fédération Nationale des Caisses d’Epargne,
and three directors from major corporations.
The censeurs act in an advisory capacity. They bring
the advantage of their independent advice, their
knowledge of the economic and financial
environment, and their expertise as managers
without taking part in any votes.
Three specialized committees – whose existence
and composition are provided for by the bylaws
adopted by the CNCE – also assist the Supervisory
Board in its deliberations. They are comprised
of between five and seven members (including
the Chairman). The committees in question are the
Audit Committee, the Remuneration & Selection
Committee, and the Strategy & Development
Committee, which together prepare the
deliberations and decisions of the Supervisory
Board.
The Management Board of the Caisse
Nationale des Caisses d’Epargne
Appointed on January 1, 2004 for a period of six years.
Charles Milhaud
Chairman
Nicolas Mérindol
Chief Executive Officer
Guy Cotret
Group Executive Director,
responsible for human resources,
IT and banking operations
Alain Lacroix
Group Executive Director,
responsible for corporate development
Alain Lacroix was appointed to the Management Board
of the CNCE to replace Anthony Orsatelli,
who resigned, for the remainder of his term of office,
i.e., until December 31, 2009.
This appointment became effective on
November 17, 2006.
Pierre Servant was a member of the Management
Board, responsible for finance, until
November 17, 2006, when he resigned his position.
From left to right:
Alain Lacroix
Nicolas Mérindol
Charles Milhaud
Guy Cotret
13
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ESSENTIALS
• The Audit Committee is responsible for ensuring
the accuracy of information provided to
the Supervisory Board. It examines, in particular,
the Group’s annual financial statements and
monitors the application of the recommendations
resulting from the work of the Internal Audit
Department and the French Banking Commission
concerning the Group’s different entities.
The Audit Committee met 14 times in 2006.
• The Remuneration & Selection Committee
is chaired by the Chairman of the Supervisory Board
of the CNCE. It is responsible for submitting
recommendations to the Supervisory Board
regarding the appointment and forms of
compensation granted to the members of
the Management Board of the CNCE. It verifies
the nature and implementation of the criteria drawn
up by the Management Board of the CNCE governing
the appointment and renewal of the senior
management personnel of the companies affiliated
to the CNCE, and submits these managers to
the approval of the Supervisory Board. One of its
members is also a censeur with a seat on the
Supervisory Board.
The Remuneration & Selection Committee met
nine times in 2006.
• The Strategy & Development Committee
is responsible for preparing the decisions of
the Supervisory Board of the CNCE concerning
the adoption of the Group’s strategic objectives
and growth priorities, the definition and revision
of the strategic plan, and projects related to
operations or partnerships. It is kept informed
on a regular basis about progress in completing
operations and partnerships and, twice a year,
about the achievement of targets included in
the strategic plan.
The Strategy & Development Committee met
seven times in 2006.
14
(1) Member of the Remuneration & Selection
Committee, chaired by Jacques Mouton.
(2) Member of the Strategy & Development
Committee, chaired by Yves Hubert.
(3) Member of the Audit Committee,
chaired by Dominique Marcel until
July 6, 2006, then by Bernard Comolet
until January 30, 2007 and
by Alain Lemaire since March 7, 2007.
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The Supervisory Board of the Caisse Nationale des Caisses d’Epargne at December 31, 2006
Appointed by the Annual General Meeting on December 15, 2003 for a period of six years.
Jacques Mouton(1)(2), Chairman
Chairman of the Steering and Supervisory Board
of the Caisse d’Epargne Aquitaine-Nord
Bernard Comolet(3), Vice-Chairman
Chairman of the Management Board of the Caisse d’Epargne
Ile-de-France Paris and of the Caisse d’Epargne Ile-de-France
Ouest (since February 12, 2007)
REPRESENTATIVES OF
THE INDIVIDUAL CAISSES D’EPARGNE
Catherine Amin-Garde
Chairwoman of the Steering and Supervisory Board of
the Caisse d’Epargne Loire Drôme Ardèche
Jean-Charles Cochet
Chairman of the Management Board of
the Caisse d’Epargne de Lorraine
Dominique Courtin(2)(3)
Chairman of the Steering and Supervisory Board of
the Caisse d’Epargne de Bretagne
REPRESENTATIVES OF
THE CAISSE DES DÉPÔTS
The Caisse des Dépôts represented by
Dominique Marcel(2)(3)
Chief Financial Officer, Caisse des Dépôts Group
Resignation effective January 29, 2007 replaced
by Jean-François Paillissé
Francis Mayer
Chief Executive Officer, Caisse des Dépôts
Died on December 9, 2006 replaced by Gérard Lunel
Jean Sebeyran(1)(2)(3)
Corporate Secretary of the Caisse des Dépôts Group
Resignation effective January 29, 2007 replaced by Bernard Monier
REPRESENTATIVES OF
THE BANK NETWORK EMPLOYEES
Serge Huber
Jacques Moreau
Jean-Claude Créquit(3)
the Caisse d’Epargne Côte d’Azur
Resignation effective December 31, 2006 replaced by Bruno Dugelay
CENSEURS (NON-VOTING MEMBERS)
Michel Dosière
the Caisse d’Epargne de Haute-Normandie
the Caisse d’Epargne Poitou-Charentes
Resignation effective March 21, 2007
Joël Bourdin
Jean-Marc Espalioux
Chairman and CEO, Financière Agache
Marcel Duvant(3)
Jean-Charles Naouri
the Caisse d’Epargne des Pays du Hainaut
Chairman and CEO, Casino Group
Yves Hubert(1)(2)
Chairman and CEO, Veolia Environnement
the Caisse d’Epargne de Picardie
Alain Lemaire(3)
the Caisse d’Epargne Provence-Alpes-Corse
Jean Levallois(1)
Henri Proglio(1)
Natixis represented by
Anthony Orsatelli, member of the Management Board of Natixis
Fédération Nationale des Caisses d’Epargne
represented by
Nicole Moreau (Chairwoman of the Board of Directors of the FNCE)
the Caisse d’Epargne de Basse-Normandie
GOVERNMENT REPRESENTATIVE
Alain Maire
Antoine Mérieux
the Caisse d’Epargne de Bourgogne Franche-Comté
Bernard Sirol(1)
the Caisse d’Epargne de Midi-Pyrénées
Yves Toublanc
the Caisse d’Epargne des Alpes
Hervé Vogel(2)
REPRESENTATIVES OF
THE WORKS COUNCIL OF THE CNCE
Abdel Babaci
Jean-Luc Débarre
Philippe Malizia
Patrick Mellul
the Caisse d’Epargne Rhône-Alpes Lyon
Resignation effective January 31, 2007 replaced by Jean-Marc Carcelès
15
au“
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ESSENTIALS
The Fédération Nationale des Caisses d’Epargne
The Fédération Nationale des Caisses d’Epargne
(FNCE) is a non-profit association acting
simultaneously as a think tank, and as the voice and
representative of the individual Caisses d’Epargne
and their cooperative shareholders.
• The FNCE helps to coordinate and develop relations
between the Caisses d’Epargne and their cooperative
shareholders.
• It helps to define the overall strategic objectives of
the network.
• It provides national guidelines for financing local
and social economy projects (known as “PELS”) and
actions taken by the Group in the general public
interest.
• It organizes, in liaison with the CNCE, training
sessions for the Group’s senior management team
and for representatives of cooperative shareholders.
• It defends the common interests of the Caisses
d’Epargne and their cooperative shareholders,
notably in dealings with the public authorities and
professional bodies both within and outside France.
• It ensures compliance with the rules of deontology
within the Caisses d’Epargne network.
• It contributes to the active involvement of the
French savings bank network within European bodies
of the same nature.
It is consulted by the CNCE regarding all reform
projects concerning the Caisses d’Epargne.
The organization of the Fédération is based on
several statutory bodies: the annual general meeting,
the Board of Directors, the Office of the Chairman
(“bureau“), the Federal Board and various committees.
Each Caisse d’Epargne is represented at the
Annual General Meeting of the FNCE by its Chairman
and one member of its Steering and Supervisory
Board in addition to the Chairman of its Management
Board.
The Board of Directors of the FNCE is comprised
of 18 members elected by the AGM in equal numbers
from among the Steering and Supervisory Board
Chairmen and the Management Board Chairmen.
For the preparation of its work and decisions,
the Board is assisted by three committees – social
commitment, cooperative life and training,
communications and international relations – and
bodies of experts specializing in areas having
a major impact on the activities or organization of
the French savings banks.
16
The Office of the Chairman (“bureau“) is a collegiate
body that acts in an advisory capacity with a view to
facilitating the deployment of the Fédération’s
activities. It is comprised of six members from the
Board of Directors, three Management Board
Chairmen and three Steering and Supervisory Board
Chairmen. It convenes meetings whenever
necessary, and at least five times every year.
The Federal Board, comprised of all the Chairmen
of the different Management and Steering and
Supervisory Boards, is a forum for reflection
and debate between the individual Caisses d’Epargne.
It is invited by the Board of Directors to coordinate
reflection about corporate strategy, to express an
opinion about the structural goals adopted by the
Group or take part in the process leading to the
appointment of Caisses d’Epargne representatives in
the national bodies. It convenes meetings whenever
necessary, and at least once every quarter, as
decided by the Board of Directors.
The key event in 2006 was the preparation of the
Natixis operation, for which the Fédération gave its
support among the cooperative shareholders and
directors of the local savings companies,
shareholders of the regional savings banks.
The implications of this project in terms of corporate
governance were the subject of major work organized
as a continuation of the consultation process
launched in 2005.
• New corporate governance
The Fédération has applied the corporate
governance principles approved by the network and
incorporated several provisions into its bylaws
concerning the way in which the Caisses d’Epargne
are represented in the Group’s national
administrative bodies and the creation of channels
for expressing positions jointly held by the French
savings banks.
The principle of equal representation by
Management Board and Steering and Supervisory
Board Chairmen has been applied to the members
of the Fédération’s Board of Directors and bureau.
The Federal Board, a new joint advisory body, was
set up in 2006.
In December, the annual general meeting of the
Fédération, renewed half of the members of its
Board which again expressed its confidence in
Nicole Moreau by appointing her as Chairwoman
for a further three years.
The Fédération’s operational team has been
expanded and reorganized with a view to more fully
satisfying the expectations of the Caisses
d’Epargne in areas related to corporate strategy,
cooperative activities, social commitment and the
representation of their interests.
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The Board of Directors of the Fédération Nationale des Caisses d’Epargne
at December 31, 2006
OFFICE OF THE CHAIRMAN
Jean-Claude Créquit
Nicole Moreau, Chairwoman
the Caisse d’Epargne Côte d’Azur
the Caisse d’Epargne Ile-de-France Paris
Jean-Paul Ferry
Jean-Paul Ducept, Vice-Chairman, Treasurer
Acting Chairman of the Steering and Supervisory Board of
the Caisse d’Epargne de Lorraine
the Caisse d’Epargne de Picardie
Bernard Fougère
Jean-Luc Grandjean
the Caisse d’Epargne Poitou-Charentes
the Caisse d’Epargne de Bretagne
Joël Gelas
Robert Romilly
the Caisse d’Epargne des Alpes
the Caisse d’Epargne du Val de France-Orléanais
Eric Grimonprez
Michel Sorbier
the Caisse d’Epargne de Flandre
the Caisse d’Epargne d’Auvergne et du Limousin
Jean-Pierre Hallier
Bernard Toublanc
the Caisse d’Epargne de Haute-Normandie
the Caisse d’Epargne Ile-de-France Nord
Victor Hamon
the Caisse d’Epargne Pays de la Loire
Francis Henry
the Caisse d’Epargne Champagne-Ardenne
Marie-Louise Lota
Alain Mansillon
the Caisse d’Epargne de Basse-Normandie
Jean-Claude Passier
Pierre Valentin
the Caisse d’Epargne Languedoc-Roussillon
17
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No. 1 bank for young people
with almost 7 million
customers aged under 26
18
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CAISSE D’EPARGNE,
RETAIL
BANKING
19
CHAPTER
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RETAIL
BANKING
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The individual Caisses d’Epargne –the foundations upon which the Group is built–
together form the third-largest banking network in France with 4,300 branches
(4,700 for the Group), 6,300 ATMs and the full array of online and telephone banking
services. Nearly one out of every two French people is a Caisse d’Epargne customer
and more than three million are cooperative shareholders. Open to the widest possible
public and faithful to the notion of social progress – the basic principle underlying
the creation of the French savings banks – the Caisses d’Epargne are constantly looking
for innovative ways to make life easier for their individual or professional customers
and to assist them in the realization of their projects. With solutions covering
investments, general and provident insurance, asset management, loans, real estate,
payment methods, etc. Caisse d’Epargne provides the full panoply of services and
support that people require from their banking partner.
A STRATEGY FOUNDED ON BANK-CUSTOMER RELATIONS
T
he Caisses d’Epargne committed
more than €750 million optimizing
their sales methods and distribution
network between 2005 and 2007.
The objective is to reach out to more
customers more often and to satisfy
more fully the needs of every one of them.
This program, known as Fréquence Client, is
based on a seven-way segmentation of the Caisses
d’Epargne’s 26 million individual customers.
Accessible on the workstations of all sales staff,
Fréquence Client is a way of tailoring contact
methods, products and services to each customer
and of adjusting to their changing needs over time.
Thanks to this system, 80% of customers eligible
for portfolio management now have their own
account manager.
In 2006, a further program named Fréquence Client
Pro was set up, with its own specific segmentation
and training, designed to further improve the
service offered to professional customers.
The branch: the heart of the sales network
Fréquence Client has been paralleled by a farreaching transformation of the network, which will
be largely renovated by 2007. 614 branches were
created or entirely refurbished in 2006, some 1,297
in all since the launch of the program.
Caisse d’Epargne’s new branches offer higher
quality service, greater security and extensive
automation of basic transactions, so that sales
staff can allocate all the time needed to give their
customers personalized advice.
Four types of branches have been developed,
reflecting the diversity of local conditions: one is
entirely automated, while the other three offer a
combination of automated and manned spaces,
geared to local customer profiles. This policy
corresponds to the fact that 32% of Caisse
d’Epargne branches are situated in rural areas,
and more than 5% are either in or close to
sensitive urban areas.
An unprecedented
training drive
To underpin this major development, Caisse
d’Epargne is conducting an unprecedented training
drive with its sales teams focusing on new methods
of approach and selling, and dynamic management
of a portfolio of customers. 10,000 members of staff
have already received training.
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From direct marketing to mobile banking:
an innovative approach
Sales growth has also received a boost from a
national marketing campaign management tool
called Crescendo. In 2006, it was used in all the
national multi-channel campaigns, providing the
Caisses d’Epargne with more than a hundred
readymade marketing solutions.
There have also been improvements to the
different online and telephone banking channels.
These systems work in parallel with the branch
network, using the Internet – where security has
been tightened up – and telephone banking.
Customer relations centers can be accessed
via Internet. A new national telephone banking.
infrastructure and customer relations centers are
gradually being rolled out. The Caisses d’Epargne
employ the services of 17 customer relations
centers and 700 telephone advisers. In 2006, these
channels handled more than 9.5 million telephone
calls and 550,000 emails.
2nd
Mobile banking has continued to expand: the
Direct Ecureuil Mobile based on WAP and i-mode
technology, and AlertEcureuil SMS services are
available in all the Caisses d’Epargne.
The French savings bank confirmed its capacity
to out-innovate its competitors by launching movo,
the first system for person-to-person money
transfers by mobile phone.
MOVO: CASH BY SMS
Mobility and simplicity: ever responsive to changing
lifestyles, Caisse d’Epargne has introduced
its innovative movo facility, which enables individual
customers to transfer money between accounts
by mobile phone.
Caisse d’Epargne customers are the first in France to
be offered this subscription-based service. It employs
two technological innovations developed by
GCE Newtec, the Group’s specialized subsidiary:
the Id-tronic ID solution and the SP PLUS secure
payment system. Reimbursing friends after a meal
out, sending money to your children: movo fits in
with many aspects of day-to-day living, making life
easier for France’s 46 million mobile phone users.
most popular
banking website in France
With more than 2.6 million hits a month
in 2006, and visitor levels up by 20%, the Caisse
d’Epargne website is France’s second most visited
Internet banking site and a powerful information
and sales tool.
Practical and comprehensive, everything in the
website is designed to guide and advise customers,
and to help them in the decision-making process.
Additional security systems – such as the virtual
keyboard – have been introduced.
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Sustainable
development:
is it really
important?
handling
fees
Sustainable development is good for the planet and can also be good for the pocket.
For example, Ecureuil Crédit Développement Durable, the Caisse d’Epargne sustainable
development loan, is a way of financing energy efficient house improvements or
the purchase of an eco-friendly vehicle. There are no handling fees and ADEME(1) also
provides free specialist advice. On the investment side, EDF Energies Nouvelles, which was
launched on the stock market in November 2006 by Groupe Caisse d’Epargne’s specialist
teams, at a share price of €28, was worth more than €40 by the end of the year. For people
looking for a more diversified portfolio, Banque Palatine has created two innovative mutual
funds: Energies Renouvelables (“renewable energies”) and Palatine Or Bleu (“Palatine blue
gold”) invested in the water industry.
(1) The French agency for environment and energy management.
22
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SAVINGS AND LIFE INSURANCE
S
avings – the Caisses d’Epargne’s
historic area of expertise – have seen
strong growth in new deposits.
Average savings levels in 2006 rose
to almost €270 billion, up by nearly
5% year-on-year. Net aggregate
savings deposits taken by Caisse d’Epargne
from individual and professional customers
stood at €4.3 billion on December 31, 2006, up by
€2.5 billion.
Individuals maintained high savings rates,
estimated at 15.1%(2), reflecting an increase in
purchasing power of some 2.8%(3). There were two
successive interest rate rises on the Livret A
passbook account, to 2.25% on February 1, 2006
and 2.75% on August 1, 2006. The reform of
the PEL home purchase savings plans prompted
a massive shift into life insurance, which confirms
its position as France’s favorite investment vehicle.
Buoyant stock market conditions and the so-called
Fourgous amendment boosted unit-linked policies
and investment in mutual funds.
The Caisses d’Epargne also marketed three
Ecureuil bonds, issued by the CNCE, for
a total amount of €736 million, and collected
€357 million in shares.
THE ANIMAL ADVERTISING SAGA:
STILL A HIT WITH THE FRENCH!
The performance index for the saga’s four advertising
campaigns, measured by the BVA Institute for the year
2006, stood at 223 compared with a baseline of 100.
This is a combined index employing the criteria of
recognition, attribution and approval. It is based on
1,000 interviews a month with a representative
sample of the French population. Year-on-year,
therefore, this survey proves that the saga is France’s
favorite bank advertising campaign. In addition,
at the beginning of 2007, for the third time in four
years, Caisse d’Epargne won the Impact 66 award for
the campaign that achieved the best impact score
with readers of the regional daily press over
the previous year.
Sustained promotion
Three major campaigns punctuated the savings
year. Caisse d’Epargne resumed its sales offensive
in January 2006 by enhancing the clarity and scope
of its investment offering. In June and July 2006,
the L’Eté Gagnant (“Winning Summer”) campaign
boosted bank savings through the offer of
promotional interest rates. In December 2006,
Les Etrennes de l’Epargne (“New Year’s Savings
Gift”), a major promotional campaign with 800,000
greetings cards and 200,000 cuddly toys, ran for
the third consecutive year with a highly successful
outcome for passbook accounts.
At the end of 2006, deposits on Livret A passbook
accounts stood at €61.6 billion(4), with 23.4 million
passbooks. Average 2006 savings in home
purchase plans stood at €42.7 billion.
(2) Source: INSEE (National accounts, fourth quarter of 2006,
March 30, 2007).
(3) 2.3% after adjustment to reflect the consumer price index.
(4) Before capitalization.
23
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BANKING
Guaranteed funds were also a success story,
making the Group one of the leading players with
market share in excess of 24%. The funds launched
in 2006 (mainly the Al dente range) attracted a total
of €1.7 billion.
Record uptake for Natixis shares
Following outstanding efforts by the entire
network, almost 670,000 customers signed up to
acquire Natixis shares for a total of €1.35 billion
within the framework of the company’s stock
market floatation. A total of €932 million was
invested.
The Caisses d’Epargne’s market share represented
39% and 191,000 new securities accounts were
opened.
Order processing and securities account
management was handled by the subsidiary
Gestitres, which once again demonstrated its ability
to deal with extremely large volumes of business.
670,000
customers
holding shares in Natixis
Mutual funds: a new momentum
Caisse d’Epargne possesses a range of some
100 products (guaranteed, feeder, money market,
equity, bond-based funds, etc.) devised by
Ecureuil Gestion. The financial management of
some of these mutual funds is outsourced to
IXIS Asset Management.
At the end of 2006, funds under management stood
at €36.9 billion, up by 10%.
The Collection Finance Ecureuil range of mutual
funds includes the Sélectionnés (Selected) funds for
knowledgeable customers who already invest in
mutual funds, the Garantis (Guaranteed) funds for
customers who want risk-free access to the
performance of the financial markets and Bourse
“Esprit Ecureuil” funds for stock market novices.
A winner of the Innovation Prize awarded by the
Forum de l’Investissement savings and investment
fair, Bourse “Esprit Ecureuil” was extended to all the
Caisses d’Epargne in 2006.
More than 122,000 accounts had been opened and
€338 million invested by the end of 2006.
24
Excellent year for life insurance
Sales of new life insurance policies by Caisse
d’Epargne grew 17% to €6.2 billion in 2006, with
strong growth in unit-linked policies.
Nuances 3D, Nuances Plus and Nuances Privilège
policies consolidated their success, stimulated by
favorable stock market conditions.
With products ranging from the Ricochet policy,
designed to provide a safe start in life savings, to
Nuances Privilège, the tailored private management
contract, Caisse d’Epargne boasts a clear and
comprehensive range of policies, covering all
its customers’ life plans.
13 AWARDS FOR CAISSE D’EPARGNE’S
LIFE INSURANCE SOLUTIONS
• Gestion de Fortune
Life insurance “Oscar”: Nuances Privilège,
Nuances Plus
• Le Journal des Finances
Quality and Performance award: Nuances Privilège,
Initiatives Plus
• Le Revenu
2006 Innovation Prize: Nuances Privilège
Gold Trophy: Initiatives Plus
Silver Trophy: Nuances 3D
Bronze Trophy: Nuances Plus
• Les Dossiers de l’Epargne
Label of excellence: PERP Caisse d’Epargne (pension
savings plan), Nuances Privilège
Positive opinion: Nuances 3D, Nuances Grenadine,
Nuances Plus
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PRIVATE ASSET MANAGEMENT
C
aisse d’Epargne has maintained
its positive momentum in the area of
private asset management, attracting
deposits of €2.9 billion, up by 48%
compared with the end of 2005. As a
result, the private asset management
customers represent the majority of the Caisses
d’Epargne’s aggregate new life insurance
business with the Nuances Plus and Nuances
Privilège products.
Complementary skills
Caisse d’Epargne’s private asset management
operations designed for its wealthier clientele boast
76,000 active customers, with a target of attracting
almost 100,000 by the end of 2007. The activity’s
sales effort is entrusted to 470 specialized account
managers, while the technical side is based on the
Group’s estate planning and wealth management
specialists whose expertise covers all asset classes
and all management styles.
The specialists from La Compagnie 1818 –
Banquiers Privés –, the Group’s private banking arm,
provide on-demand and tailored services for
the Caisses d’Epargne’s wealth management teams.
The Scan Patrimoine service, launched in 2006,
offers customers a snapshot of their current asset
situation and recommends appropriate solutions,
employing a very different format from the often
tedious process of traditional wealth analysis.
76,000
active customers
In the area of real estate investment, Caisse
d’Epargne’s subsidiary Iselection offers a
comprehensive and market-ready range of rental
property investments and tax management
solutions. This offering, available in 14 Caisses
d’Epargne at the end of 2006, is marketed by
several dozen real-estate investment advisers.
A comprehensive and differentiated offering
A further enhancement to the asset management
offering is Elite 1818, a solution that provides access
to the best market funds selected by the experts
from La Compagnie 1818. This offering represents
an alternative to discretionary management.
Loyaltie 1818 and Multiance Cap 1818 – new
contracts targeted at customers who are liable for
wealth tax (ISF) under French law – constitute two
further additions to the core Nuances Plus and
Nuances Privilège products.
The tax management range, the only offering of
its kind in the French market, boasts four new
products: OCÉORANE garanti (industrial
investments in French overseas departments and
territories under the provisions of the Girardin act),
shares in forestry groups, a refocused Robien real
estate investment company–SCPI– (Atout Pierre
Habitation 2) and SofiCapital which invests in
independent filmmaking.
THE VISION
PATRIMOINE
NEWSLETTER
This new quarterly
newsletter goes out to
the Caisse d’Epargne’s
76,000 private asset
management
customers.
25
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Page 26
Can a major bank
help your children
to write
their essays?
to access
Ecureuil Sérénité Services
(in France)
By listening to its customers and observing their lifestyles and working
patterns, Caisse d’Epargne is able to devise products and services that
reflect their aspirations and make their lives easier. This is how
the Ecureuil Sérénité Services package of personal care services came into
being: a single telephone number provides access to several hundred
trustworthy service providers. They are selected by Séréna, the specialized
subsidiary created with three of the big mutual insurance companies:
MAIF, MACIF and MGEN. Assistance for the elderly, disabled or
dependent, housework, ironing, gardening, childcare, help with school
work: Séréna has a rapid and effective response to all these needs.
26
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BANKING SERVICES
A
s the day-to-day banking partner
of one out of every five French
people, Caisse d’Epargne is one of
France’s front-ranking financial
institutions. In 2006, its offer to pay
interest on current accounts – with
no minimum balance and no extra charges –
helped to persuade almost 400,000 customers to
sign up for a Satellis service package; this mutually
profitable relationship was reinforced in September
by the launch of the S’Miles loyalty program.
Almost 800,000 additional interest-bearing
service packages taken out in the space
of two years
The payment of interest on current accounts, an
advantage included in the service packages taken
out by individual customers, boosted subscriptions
for the Satellis Essentiel and Satellis Intégral products
whose total exceeded 4.7 million units at the end of
the year with more than 360,000 new subscribers.
Caisse d’Epargne remains the leading issuer of Visa
cards and the second-largest issuer of bank cards,
irrespective of brand, with more than 5.5 million cards
in total.
In addition, the Domilis product, by which customers
can transfer all their account transactions was rolled
out through the network and implemented for more
than 84,000 customers.
Funds deposited in individual demand deposit
accounts grew by 4.8% to reach a total of
€20.5 billion at the end of 2006. This takes Caisse
d’Epargne’s market share to 8.6%.
No. 1 bank for young people:
new dedicated offerings
Young people represent 30% of new bank
customers. Caisse d’Epargne is committed to
helping them achieve independence, manage their
finances and bring their various projects to
a successful conclusion.
S’MILES:
LOYALTY RECOGNIZED AND REWARDED
Since September 2006, Caisse d’Epargne’s five million
customers with Satellis account packages have been able
to join the free S’Miles loyalty program, which has big
players such as Casino, Galeries Lafayette, Monoprix,
the French national railways (SNCF) and Shell on board.
Customers collect S’Miles when they use their Caisse
d’Epargne Carte Bleue Visa and receive bonuses when
they present their S’Miles loyalty card in participating
outlets.
The accumulated S’Miles can then be exchanged for
savings vouchers or gifts. If customers want, they can
also use S’Miles to contribute to two of the
environmental protection programs run by the WWF,
with which Caisse d’Epargne has an active partnership.
Caisse d’Epargne also rewards the partner brands’
12 million S’Miles customers when they withdraw
money from its 6,300 cash machines.
The S’Miles Alliance reflects strong demand in France:
more than 80% of French people favor a loyalty card
that primarily involves the big retailers, leisure stores
and a bank.
Caisse d’Epargne is the exclusive banking partner of
S’Miles, which was a runaway success right from
the launch: 1.6 million Caisse d’Epargne customers
had already joined the program by the end of 2006.
In 2006, Caisse d’Epargne focused on addressing
three major areas of concern for young people:
jobs, accommodation and mobility.
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36
%
On the employment side, Caisse d’Epargne has
joined forces with the M6 TV channel to create
a program called Parés pour l’avenir (“All set for the
future”). Watched by a million viewers every day, it
gave advice on getting a first job based on real cases.
A link with the monster.fr website, the world leader
in web-based recruitment, has been placed on the
Ecureuil.fr website dedicated to young people.
In addition, Caisse d’Epargne offers a wide range
of student loans up to an amount of €30,000 over
10 years.
As regards mobility, Caisse d’Epargne has also
teamed up with Virgin Mobile France to market a
phone deal consisting of a mobile phone subscription
package with insurance against loss or theft.
As well as finance for a first vehicle, car insurance
has been opened up to all young people with no price
discrimination, whether or not they have been
through the accompanied driving program.
In response to the problem of finding
accommodation, the Crédit Première installation
(a loan for young people moving into their own
place for the first time), which combines a personal
loan with a Teoz card, was extended in June 2006
with a 0% interest €1,000 loan offering which can
also be used for purchases to enhance
geographical mobility.
CARTE BLEUE
VISA LAGON
Restricted to the
under 25s and with
a maximum issue
of 90,000 cards,
this transparent,
aquamarine blue
Caisse d’Epargne
Carte Bleue Visa
enjoyed an
outstanding
success.
28
of young people are
Caisse d’Epargne customers
Personal care services:
a comprehensive offering
At the beginning of 2006, through its partnership
with the MACIF and MAIF mutual insurance
companies, Caisse d’Epargne launched its Ecureuil
Sérénité Services range of personal care services,
which will be available in all the individual Caisses
d’Epargne by the end of June 2007.
This represents a genuine innovation in the
domestic support sector. Ecureuil Sérénité Services
offers customers a single gateway to a wide range
of home-based services, whether one-off or
recurrent, without any administrative formalities or
the obligation to become employers, with all the
standard tax advantages (tax reduction or tax credit
of half of the amount spent).
At the same time, Caisse d’Epargne has
established a strategic partnership with Accor
Services to offer its customers, businesses and
local authorities, the new prepaid multi-purpose
employment service checks (known as CESU).
The bank now boasts a global package promoting
access and growth in the sphere of personal care
services.
Complementary health cover:
three simple and competitive
start-up policies
In partnership with the MACIF Group, Caisse
d’Epargne launched three complementary health
insurance policies at the end of 2006 designed
for different age brackets, with three levels of cover
offering ascending levels of reimbursement on the
costs of dental and eye care: Côté Je (I Side) for
young people without children, Côté Nous (Us Side)
for families, and Côté Master (Master Side) for
seniors. This range will be available throughout the
network in 2007. The aim is to achieve growth of
around 120,000 policies a year once the offering
has reach cruising speed.
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LOANS AND GENERAL INSURANCE PRODUCTS
T
he year 2006 was characterized by
sustained lending activity and, in
particular, strong growth in nonrevolving consumer loans. New loans
granted to individual customers reached
a total of €19.8 billion at the end of 2006.
Caisse d’Epargne:
No. 2 in real-estate transactions
More than one in 10 French people buy their
houses through Caisse d’Epargne. This represents
more than 10.7% of the overall market, and new
mortgages granted by Caisse d’Epargne in 2006
exceeded €15 billion.
The relationships developed with partner networks
in the real-estate sector account for a significant
proportion of new loans.
The Caisses d’Epargne can now offer their
customers the recently introduced hypothèque
rechargeable (home equity loan) on new mortgages.
110
in
people in France buy their homes
through Caisse d’Epargne
Consumer lending:
an extended offering
Consumer loans (excluding revolving credit
facilities) rose to an aggregate total of €3.9 billion,
up by 9% over 2005 levels. A full range of personal
loans has been rolled out to meet all the financing
needs of individual customers: new or used
vehicles, setting up home, household goods, home
improvements, cash flow, etc. A new addition to the
range in 2006 was the Ecureuil Crédit Développement
Durable sustainable development loan, which is
supported by ADEME, France’s environment and
energy management agency. In addition, a yachtleasing package with option to buy was launched.
The Teoz card, managed by the subsidiary Caisse
d’Epargne Financement (CEFi), lies at the heart of
consumer credit solutions, notably revolving credit
facilities. The Caisses d’Epargne sold 193,000 accounts,
taking the overall number of Teoz accounts to
691,200, up by 11% compared with 2005.
CEFi has provided the Caisses d’Epargne branches
with IZICEFi, an innovative IT solution that boosts the
opportunities to sell personal loans. At the end of
2006, more than €1 billion in personal loans had
been financed through IZICEFi.
General insurance:
strong growth
In 2006, Caisse d’Epargne sold almost 574,000
general insurance policies, managed by its
subsidiary Ecureuil Assurances IARD.
This dynamic level of growth (16%) reflects
increased sales efforts and the success of the
discounts offered to customers subscribing
multiple policies. There are four main products in
the range: car insurance, home insurance,
personal accident insurance and legal protection.
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2
No.
in comprehensive accident
and healthcare insurance(1)
The easing of rules governing the acceptance of
young drivers was reflected in particularly dynamic
growth in car insurance sales. A motorcycle
insurance policy for existing policyholders or their
children was launched.
There was a major awareness-raising campaign
around the provident insurance range consisting of
Garantie Urgence, Garantie Famille, Garantie des
Accidents de la Vie and Protection Juridique, a series
of products providing emergency, family, accident
and legal cover. Almost 320,000 contracts were sold
in 2006 (up by 40% on 2005 levels).
A new loyalty offering was launched with a 7% to 10%
discount on comprehensive accident/home & health
and car insurance, throughout the life of the policy.
Finally, the year was marked by a comprehensive
review of the general terms and conditions of sale.
Presented in a clearer and more uniform manner,
they are easier for customers to understand.
MEDIATION: MORE THAN 1,400 APPEALS
HANDLED IN 2006
Originating under the so-called “Murcef act”, banking
mediation now plays a major role in customer relations.
Above and beyond the legal obligations, which apply
only to deposit accounts, the Group has decided to
extend the scope of these provisions to almost all the
products and services supplied to individual customers.
Every year, the mediator receives around 3,500 requests,
of which less than half actually fall within his remit.
In 2006, he handled 1,405 cases, 1,160 of which were
judged “on the merits of the case”, with the ruling
finding partially or totally in favor of the customer
in 40% of the cases.
As well as settling disputes, mediation helps
to improve the way complaints are handled and
contributes to practices that benefit all customers.
This is particularly true for compensation relating
to bank cards, the settlement of problems associated
with deposit account transactions, and information
and advice on investments. “It is important to be
aware of the personal and human aspects of each case
and to employ an approach that also reflects ethical
values and fairness”, stresses Jean-Pierre Thiolon,
GCE mediator since 2003. As a former Chairman of the
Management Board of the Centre National des Caisses
d’Epargne, he enjoys considerable moral authority and
is listened to in the highest echelons of the Group.
3
No.
in car insurance,
comprehensive home insurance(2)
and legal protection(3)
30
(1) Source: FFSA.
(2) Source: G9.
(3) Source: G9.
27/07/07
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PROFESSIONAL CUSTOMERS
T
hirty-five thousand professional
customers chose Caisse d’Epargne
as their bank in 2006.
Caisse d’Epargne now boasts a total
clientele of 200,000 retailers,
tradespeople, and self-employed
professionals… 140,000 of whom also bank with
the savings bank in a private capacity. Boosted by
the payment of interest on current accounts, all
the targets for the distribution of banking services,
deposits and loans were met or, indeed, exceeded.
A buoyant market
Overall, professional customers represent 13%
of new loan production, savings surpluses and
average current account deposits in retail banking,
and a significant contribution to asset
management business.
1,500 specially trained branch managers and
950 specialized customer account managers are
dedicated to serving this clientele. They make use
of Fréquence Client Pro to help them to pursue
a targeted strategy designed to attract new
customers: 24 priority sectors have been selected
for their dynamism and profitability, with the aim
of building up a balanced portfolio of tradespeople,
retailers and self-employed professionals.
Sustained advertising, partnerships with a large
number of professional associations, welcome
packs: in 2006, this aggressive policy led to a 6%
growth in the number of active customers and
to the signature of 25,000 new service packages:
Libre Convergence for tradespeople and retailers,
and Labelis for self-employed professionals.
These packages include cash transaction and
remote transmission software – such as Datalys,
specifically designed for chartered accountants –
account management and overdraft facilities,
insurance, assistance with legal and tax matters,
and online collaborative accounting services.
The 100,000 mark for business account packages
was reached in the course of the year.
FRANCHISE, QUITE FRANKLY
Caisse d’Epargne pursues a sustained strategy to attract
franchise holders, supported by Group subsidiary SACCEF
in the provision of loan guarantees. Partnerships have
been signed with 28 national and regional franchise
networks. Franchise & Vous, a package specially
designed for franchise professionals, was launched in
2006. This solution notably offers interest on current
accounts, but also commitments such as the provision
of a national center linking franchisors, the needs of
the franchisee and Caisse d’Epargne.
Electronic banking and online commerce:
growth and innovation
Caisse d’Epargne has continued to reinforce its
electronic banking and e-business services with
competitive and innovative solutions. On the electronic
banking side, active contracts are up by 7%, with
steady growth in the Paiement trois fois card paiement
service that allows retailers to offer their customers
the option of paying in three installments.
100,000
forfaits pro
business packages
31
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250,000 small businesses
for sale over the next five years:
is there a way to make it
easier to buy and to sell?
of prof
will sell thessionals
eir busine
ss
One quarter of professionals have plans to sell their business. To make this process
easier, Caisse d’Epargne, working with the different French Chambers of Commerce
and Industry and Chambers of Trade, has reinforced its partnerships with the
support networks active in France. The Association of Business Sellers
and Buyers (CRA) and the Réseau Entreprendre enterprise network have volunteers
with experience in business management who give advice to customers sent by
Caisse d’Epargne. At the same time, Caisse d’Epargne offers entrepreneurs
additional sources of finance on top of the subsidized finance available from the
support networks. The different Caisses d’Epargne offer professionals the expertise
of 1,000 “pro” account managers and 250 business account managers.
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On the Internet, transactions via SP PLUS,
the Group’s secure payment server, have continued to
enjoy strong growth: the number of active contracts
is up 42% to 2,552 while the number of transactions
is up 43% to around 6 million and amounts
processed rose 44% to more than €595 million.
The turnkey solution SP PLUS Site, which consists
of a website and a secure payment system, was
launched successfully.
€40,000
in just
48hrs
In this sphere, GCE Newtec, the subsidiary
specializing in new information and communication
technologies (NICT), offers highly effective services
such as Id-tronic, an antifraud solution that
identifies buyers in real time whenever they pay for
purchases on the Internet, and 3D Secure,
a system that guarantees retailers peace of mind
when they sell to customers outside France,
by providing them with a secure payment system
via Visa or MasterCard accounts.
As a result, lending to professionals grew by 15%
in 2006, passing the €3 billion mark. New
production in the area of medium/long-term
lending and leasing grew by 9%. Consumer credit,
promoted through a dedicated offering, and real
estate loans, are up by 21% and 24% respectively
over 2005 levels. Private lending to professionals
is up by 23%.
Sustained growth in lending
Caisse d’Epargne offers a wide range of savings,
general & provident insurance and retirement
products, together with advice on the management
and transfer of assets.
These activities enjoyed buoyant growth in 2006.
Net new business in this area rose by 15% to reach
a total of €400 million.
Caisse d’Epargne offers professional customers
a comprehensive array of borrowing options, covering
needs ranging from the creation of a new business
to the transfer or buyout of an existing company
to loans for capital goods. For example, Ecureuil
Crédit Express provides finance to replace and
acquire equipment or vehicles and to carry out
building work. Unsecured loans of up to €40,000
excluding tax can be approved within 48 hours.
A comprehensive
range of loans
to professionals
Savings stimulated by private asset
management
4,000 policies covering accidents or prolonged
absence from work – Protection Activité
Professionnelle (“Professional Activity Protection”) –
have already been sold.
With respect to pensions, Ecureuil Retraite Pro,
a product offering significant tax advantages for
self-employed workers, was launched in 2006.
In 2006, Caisse d’Epargne launched a new
guarantee, in the form of a financial security,
covering up to 100% of mortgages used to finance
business or mixed-use premises. Previously
restricted to professionals in the health sector, this
guarantee is now available to all professionals.
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Two out of every
three French
municipalities
bank with
Caisse d’Epargne
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GROUPE CAISSE D’EPARGNE,
THE SPECIALIST BANK FOR
REGIONAL
DEVELOPMENT
35
CHAPTER
3
THE SPECIALIST
BANK FOR REGIONAL
DEVELOPMENT
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Building on its strong local presence, Groupe Caisse d’Epargne is partner
to regional social and economic development players of all sizes. Proximity,
innovation, services: Groupe Caisse d’Epargne offers local authorities, the
hospital sector, social housing bodies, entities active in the social economy,
local businesses and real estate professionals a comprehensive range of
products and services designed to finance their projects, simplify their
management and optimize their investments. In 2006, Groupe Caisse d’Epargne
set up a new cross-functional organization – the Specialist Bank
for Regional Development – with a view to meeting even more fully the needs
of players active in the local and regional economy.
LOCAL AUTHORITIES AND INSTITUTIONS
A
s the historical partner of local
authorities and institutions,
Groupe Caisse d’Epargne is actively
involved in helping its customers
to satisfy the needs of their fellow
citizens. As joint leader providing
finance for the regional public sector and hospitals,
Groupe Caisse d’Epargne offers banking advice
to local authorities and institutions, designing
tailor-made packages for their development projects,
targeted solutions for managing their debt portfolio
and a wide range of products and services to assist
them on a day-to-day basis.
The local public and healthcare sectors account
for more than 70% of aggregate public investment.
Their capital goods spending, which grew by 8%
in 2006, helps to create and maintain 850,000 jobs
per year in the construction, services and
manufacturing sectors (GCE-French Regions
Association survey, December 2006). France’s
départements and regions are boosting their
investment in infrastructure projects, with a
particular focus on middle and high schools. Towns
and inter-municipal organizations, which still
represent some 60% of public investment,
generally have responsibility for schools, crèches,
transport and water networks, sewerage and waste
processing infrastructures. Hospitals, under the
impetus of the Hospital 2007 plan, are particularly
active, with investment up by 9.2% (Ministry of
Economy, Finance and Industry).
These circumstances explain the increase in
borrowing and the recent development of publicprivate partnerships (PPP) for projects of all kinds.
With aggregate outstandings of €32 billion –
equal to growth of 12% in the space of one year –
Groupe Caisse d’Epargne further strengthened
its position in the local authorities and institutions
market in 2006.
36
Commitments up by 7%
With more than €8.2 billion in new mediumand long-term finance, Groupe Caisse d’Epargne is
consolidating its commitment to all local authorities
and local institutions: towns, inter-municipal
organizations, départements, regions, public health
institutions and semi-private national and regional
development and service companies.
HIGH-PERFORMANCE FINANCE
FOR THE RHINE-RHONE HIGH-SPEED TRAIN
High performance is the primary feature of the
€100 million financing package arranged for the
Franche-Comté region. The aim is to finance the Eastern
branch of the Rhine-Rhone high-speed rail link that,
ultimately, will connect Germany to the Mediterranean.
The region benefited from a specially tailored package
designed to combine flexibility, competitiveness and
security. This three-phase financing package combines
several interest-rate strategies, provides access to funds
in line with progress made on the construction work
– which started in July 2006 – and provides the right
conditions to take advantage of market opportunities.
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This growth was underpinned by the greater skills
of the sales teams, by the support of IXIS CIB, whose
specialists operate in tandem with the Caisses
d’Epargne teams, and by effective implementation of
the synergies between the CNCE, IXIS CIB and Crédit
Foncier.
Groupe Caisse d’Epargne was particularly active
in the area of public transport in 2006. It is involved
in the financing of trams in Clermont-Ferrand, Douai,
Le Mans, Montpellier, Reims and Valenciennes –
which began operating in July 2006.
Six new interest rate strategies were added to
the Bonifix range of structured loans, developed with
IXIS CIB. In all, Groupe Caisse d’Epargne has set up
€1.8 billion of structured loans for local authorities
and local institutional borrowers.
The G2D dynamic debt management activity
continued to grow: €1.7 billion of debt was subject to
tailor-made restructuring measures, after analysis of
the debt position of each of the customers concerned.
Active structured product management (GAPS)
operations accounted for 41% of G2D business in
2006. Thanks to GAPS, Groupe Caisse d’Epargne is
able to meet its commitments by supporting
its customers throughout the period of the loan.
With the support of Credit Foncier’s consultancy
service, Groupe Caisse d’Epargne is also able to offer
advice in dynamic asset management (GDP). In the
light of rising public sector financing requirements in
the regions, active management of public real estate
(land and buildings) is as crucial as active debt
management, and can enable local public sector
operators to significantly boost the scope of
their action.
To meet the demand for longer loan repayment
periods – which sometimes run for more than 30 or
40 years in the case of investment by local authorities
and institutions in social housing and public-private
partnerships – Compagnie de Financement Foncier
launched in 2006 the first public issue of obligations
foncières (covered bonds) with a term of 50 years,
for an amount of €1 billion.
Innovative services
The Ligne de Trésorerie Interactive (LTI, or
interactive line of credit) confirmed its appeal
with facilities of more than €4.4 billion set up,
representing an increase of 25%. LTI is a credit
facility that can be drawn on at any time and very
quickly – online – to meet short-term cash flow
requirements.
123
local authorities use
SP PLUS
Groupe Caisse d’Epargne also offers local
authorities and local institutions a secure online
payment service, ServicePublicPLUS, which allows
users to pay for municipal services such as:
canteens and sports facilities online.
This service is enjoying extremely rapid growth,
related to the wider availability of high-speed
broadband Internet access.
In 2006, a purchasing card, the Carte Achat
Public, was tested for potential rollout in 2007.
This public, interoperable, interbank card can be
used to buy goods from all suppliers affiliated
to the Carte Bleue and Visa networks, and allows
local authorities and institutions to streamline
the ordering and payment process for public sector
procurement needs.
The prepaid multi-purpose employment service
checks (known as CESU in France), which employers
can use to help their employees to finance personal
care services, was launched at the beginning of
2006 in association with Accor Services, the world
leader in service payment solutions.
Groupe Caisse d’Epargne, with IXIS CIB and
Ecureuil Assurances IARD, working alongside
the Syndicat national des téléphériques de France
(French ski lift Federation), also set up Nivalliance,
a structured solution that covers all of France’s ski
resorts against loss of income arising from lack
of snow, bad weather or even strikes.
THE INTERDEPARTMENTAL CESU: A MAJOR
SUCCESS FOR GROUPE CAISSE D’EPARGNE
In 2006, Groupe Caisse d’Epargne and its partner Accor
Services won a three-year contract from the French
government for the use of CESU to finance childcare
services for state employees. There are some
100,000 potential beneficiaries, and the estimated
sum involved is €18 million per year. The density
of the Caisse d’Epargne network and the expertise
of Accor Services in managing this complex system
were the deciding factors in the decision to award
the contract to Groupe Caisse d’Epargne and its partner.
One major subscriber to the LTI was the Ile-deFrance region, which arranged a €600 million line
of credit at the end of 2006.
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What do a symphony
and the financing
of a tram network
have in common?
An investment of €
million financed
over a 30-year period
Orchestration. Putting together a successful financing package means that all the banks must
play the same tune. For example: the Reims Metropole tramway was the first such system in
France to benefit from private financing within the scope of a public service concession
arrangement. This concession represents an investment of some €350 million over a period of
30 years. Groupe Caisse d’Epargne is the project’s private finance partner and plays several
instruments in the orchestra: it is a shareholder in the company that holds the concession via
the Caisse d’Epargne Champagne-Ardenne and FIDEPPP(1); it provides financial engineering
services and arranges the concession holder’s financing and interest rate hedging operations
through IXIS CIB, and provides finance through a pool that includes the Caisse d’Epargne
Champagne-Ardenne, which is also the account holder.
(1) Investment fund for the development of the Groupe Caisse d’Epargne’s public-private partnerships.
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Page 39
New investment products
New investment packages designed for the
needs of local authorities and institutions have
been developed with the subsidiaries GÉRER,
Ecureuil Gestion and IXIS Asset Management.
Within the framework of its partnership with the
Fédération nationale des sociétés d’économie mixte
(National Federation of Semi-Public Companies),
Groupe Caisse d’Epargne has created SEM
Optimum, the first mutual fund specifically
dedicated to semi-public companies. This dynamic
money market fund is designed to yield a higher
return on the funds of this type of company.
Sustained activity with public health
institutions
As one of the two largest lenders to public health
institutions, the Group has set up a dedicated
organization with a health correspondent in each
Caisse d’Epargne.
In 2006, loans worth a total of €1.2 billion were
granted, up by 13% over one year, taking lending
to public health establishments to more than
€3 billion. The projects financed included: the
modernization of the Haute-Saône intermunicipal
hospital (€91 million), the financing of the
Sant’Hainaut health cooperation group (€98 million),
and the Greater Lyon Private Hospitals group’s
construction of a surgical center, a project
implementing so-called High Environmental Quality
standards (€27.5 million).
The Ligne de Trésorerie Interactive attracted new
health sector clients, including the Amiens teaching
hospital, with a credit line of €80 million. The same
was true of the G2D service. The Alsace region’s
private hospital group chose the Pentifix solution to
restructure debt worth a total of €40 million.
1.2
€
bn
for hospitals
funding envelope of 200 million Swiss francs over a
30-year term. There were also first-time operations
in Iceland (€15 million), in Hungary (€50 million)
and in Poland (€40 million).
In Morocco, Caisse d’Epargne is working closely
with CDG Développement, a subsidiary of the
Caisse de Dépôt et de Gestion and Morocco’s Local
Authorities Directorate, to help to modernize the
financial administration of local authorities
and institutions.
Close ties with local authority associations
Groupe Caisse d’Epargne has consolidated its
presence with associations that represent regional
and local authorities, with whom a number of joint
surveys have been carried out:
• Local public investment and jobs (with the
Association des régions de France – Association
of French Regions – presented during the
Association’s conference);
• Spending in the départements: unplanned and
planned (with the Association des départements
de France, Assembly of French Departments);
• Impact of the business tax reform (with the
Association des maires des grandes villes de France,
Association of Mayors of Large Cities in France);
• How much do Small Towns “count”? (with the
Association des petites villes de France, Association
of Small Towns in France);
• Debt management: what strategy? (with the
Fédération des maires des villes moyennes,
Federation of Mayors of Medium-Sized towns).
Promising development abroad
In addition, the monthly Ecodefi Collectivités and
Ecodefi Santé surveys of local authorities and
healthcare services, which measure and assess
the interest rate expectations of financial decision
makers, have now been reinforced through
discussions with major national and regional
clients.
Groupe Caisse d’Epargne is also expanding
its activity with local authorities and institutions
outside of France, using CIFG’s credit enhancement
capacity, the assets of Compagnie de Financement
Foncier and IXIS CIB’s expertise in financial
engineering. €7.3 billion of new lending was
arranged in 2006, up by 150% over one year, mainly in
Italy and Switzerland. Finance to local authorities and
institutions included: the city of Rome (€224 million),
Aargavische Kantonalbank (€38 million), and
Geneva’s Industrial Services for a total of 100
million Swiss francs (€64 million) as part of a total
Groupe Caisse d’Epargne, as a partner of
ADEME, the French environment and energy
management agency, also took part in the
development of the Bilan Carbone® Collectivités
(local authority Carbon Audit). This method is used
to assess carbon emissions as a basis for
improving the design of new amenities and
services. Through all these measures, local
authorities, which are at the forefront of the drive
to educate citizens on reducing greenhouse gas
emissions, are progressively beginning to introduce
Local Climate Plans.
At the same time, the Caisses d’Epargne
Foundation for Social Solidarity, working through its
health care and social welfare operations, continues
to support the Group’s activities in this sector.
39
CHAPTER
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Page 40
3
THE SPECIALIST
BANK FOR REGIONAL
DEVELOPMENT
SOCIAL HOUSING AND THE SOCIAL ECONOMY
A
s the leading bank for social housing
in France and the number one loan
provider for associations and persons
in state protection programs, Caisse
d’Epargne is a major partner to all
players in the social economy. It is
also strongly committed to providing banking
services for society’s most vulnerable individuals
and supports numerous local community action
and job creation initiatives.
Social housing and the social economy are big
contributors to the Caisses d’Epargne’s activity.
The Caisses d’Epargne have specially trained
account managers for this sector, and are boosting
their sales effort with a focus on major accounts.
With €10 billion in loans and the equivalent in
savings (excluding protected customers), in 2006
social housing and the social economy represented
net banking income (excluding subsidiaries) of
€159 million.
1
No.
private banker
SOCIAL HOUSING
As the historic partner to the low-rent housing
movement (HLM), Groupe Caisse d’Epargne is
actively involved in the social housing sector as
a banker, shareholder and housing operator.
As the leading private bank in this sector, it manages
more than a third of the funds and almost 50% of
the private debt of Social Housing Enterprises (ESH)
and HLM Offices, most of whose buildings are
financed through Livret A passbook accounts. Livret A
deposits collected by the Caisses d’Epargne for social
housing stood at €65.6 billion at the end of 2006.
Sustained growth in lending
Groupe Caisse d’Epargne provides a comprehensive
array of credit solutions, with the distribution of stateregulated rental accommodation and construction
loans (prêts locatifs sociaux – PLS, and prêts locatifs
intermédiaires – PLI) along with an extremely wide
range of fixed or adjustable rate and structured loans.
Activity remained strong in 2006, with €1.7 billion
of new lending, taking the total loans outstanding
position to €7.6 billion.
Groupe Caisse d’Epargne and Credit Foncier
obtained €505 million of PLS loans for the construction
of subsidized housing in 2006. Demand among social
housing bodies was largely focused on these solutions,
which were also popular with local authorities and
housing associations. The Group continued to offer
its Package PLS, which combines a Crédit Foncier
PLS social housing loan with a Caisse d’Epargne PLI
loan for the construction of intermediate housing
units. Within the framework of operations initiated
to the social housing sector
The PLS social housing
loan is used to finance
building work on
retirement homes and
homes for the disabled
40
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Page 41
by the social housing organizations, Caisse d’Epargne
also offers special subsidized loans to help facilitate
home ownership by low-income households (PSLA).
The G2D dynamic debt management solution
was further developed in 2006 to meet the new
rules governing Livret A passbook account interest
rates and demand for financial engineering.
Under the social cohesion plan launched by
the French government in 2004, social housing
organizations are accelerating the creation of new
housing units, a policy that places heavy demands
on their available funds. Deposits stand at €4.6 billion,
down by almost €700 million.
New investment products have been designed with
the help of Group subsidiary GÉRER, in particular
term deposit accounts and structured Euro Medium
Term Notes (EMTN).
Caisse d’Epargne also provides day-to-day support
for social housing bodies: automated cash flow
management, remote transmissions, rent collection
by interbank payment orders (TIP) or via the Internet
with SP PLUS, and employee savings plans. All these
services enjoyed sustained growth in 2006.
No. 1 private shareholder in the social
housing sector
The Caisses d’Epargne are active players in
the management of social housing bodies and
semi-private companies (SEM).
The Caisses d’Epargne:
directors of 100 Social
Housing Enterprises (ESH)
and 106 Public Agencies
for Development
and Construction (OPAC)
The Caisses d’Epargne are shareholders and
directors of more than one hundred Social Housing
Enterprises, or one in three of all such entities
in France. As private players in the social housing
sector, the Social Housing Enterprises manage
almost 2 million housing units and are actively
involved in the policy to revive construction in the
social housing sector. The governance of these bodies
was reformed under the Borloo law of August 1, 2003.
The Caisses d’Epargne have provided strong
support for this development, becoming the key
shareholders in 65 Social Housing Enterprises.
The Public Housing Offices (HLM offices and
OPAC – Public Agencies for Development and
Construction) manage 2.2 million units.
In 2006, the change in the bylaws and governance
of the HLM offices and of the OPAC was consolidated
through the “National Housing Commitment Act”.
The Caisses d’Epargne are on the boards of a large
majority of the OPAC: 106 in all.
The Caisses d’Epargne are also the leading
private shareholders in semi-public real estate
companies – whose main shareholders are
the local authorities – which own a total of
458,000 housing units. Finally, Groupe Caisse
d’Epargne is also one of the main private operators
in the social housing sector, with more than
170,000 units under ownership or management in its
national subsidiaries GCE Habitat and Erilia, or in
subsidiaries owned by the individual Caisses d’Epargne.
THE SOCIAL ECONOMY
Caisse d’Epargne is a key partner to entities
active in the social economy and voluntary service
sector: more than one in four French associations
is a Caisse d’Epargne customer and the Group
provides more than 19% of bank financing in this
area, making it the premier lender to the social
economy. Caisse d’Epargne is pursuing rapid
expansion in this growing sector, which includes
voluntary associations and charitable foundations,
mutual health insurance companies, not-for-profit
health and social agencies, private education,
cooperatives, works councils, and not-for-profit
recreational bodies. More than 300 Caisses d’Epargne
employees specialize in services to the social
economy, including 150 full-time account managers.
Strong growth in business
Net deposits from the social economy sector
grew by more than €500 million in 2006, taking
total investment deposits to €4.1 billion. New loans
rose to almost €700 million, part of which is
guaranteed by Group subsidiary GCE Garanties.
Total lending to the social economy stood at
€2.6 billion at the end of 2006, mainly concentrated
in the health and social sector and in private
education.
Caisse d’Epargne increased its presence among
large-size associations with tailored proposals
for optimizing their debt structure; specific loans
for health, social, educational and training
establishments and innovative investments such
as Mélioris 2, a guaranteed capital fonds à formule
(structured fund) launched in 2006.
41
CHAPTER
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3
THE SPECIALIST
BANK FOR REGIONAL
DEVELOPMENT
PERSONS IN STATE PROTECTION
PROGRAMS
For small associations, the Associatis Essentiel
service package, specifically designed for current
account management, offers an array of secure
products and services. It also includes a range of
special insurance solutions, including Associatis
Assurances, a general liability insurance policy for
heads of associations. Caisse d’Epargne also
provides online services such as a solution
enabling members to pay their membership fees
online, via SP PLUS Site, even if the association has
no website of its own.
An active policy of communication and dialogue
Three new guidebooks were published in 2006:
Associations, comment se financer autrement?
(Associations, alternative sources of financing), Guide
des subventions européennes pour les associations
(Guide to European subsidies for associations) and
Le Comité d’entreprise n°2 (Works Councils, no.2).
They are available from the associatis.com web portal,
which also offers other publications on a regular
basis: Alinéa, A comme Association and the newsletter
Je Tutelle for providers of guardianship services.
L’OBSERVATOIRE
CAISSE D’EPARGNE
The 2006 survey carried
out by l’Observatoire
Caisse d’Epargne (the
Group’s annual market
monitor) focused on
personal care services.
The findings of this first
significant national
survey on the topic were
presented to the major
players in the social
economy throughout
the regions.
A competition was organized within the framework of
the Group’s partnership with WWF and under the aegis
of the French Ministry of National Education on the
topic of protecting nature and the environment, involving
all private and public primary schools.
As a partner to many family and disability
or dependency associations (such as FEGAPEI
or UNASSAD) and to all the member associations
of the fire service movement, Caisse d’Epargne
is in its 13th year as sponsor of the annual Ecureuil
Association competition, which awards prizes for
the most outstanding achievements.
42
Caisse d’Epargne has a strong commitment
to the most vulnerable members of society, and is
the leading bank for people under judicial protection,
with 250,000 minor and adult customers. This special
position reflects a long-standing commitment to
vulnerable members of society, and is underpinned by
the quality of the specialist teams and their relations
with providers of family guardianship services and the
statutory organizations.
1
No.
bank
for persons in state protection programs
Caisse d’Epargne manages €4.5 billion of
savings on behalf of this client group, and provides
a service geared to their needs with the Satellis
Autonomie service package and the secure cash
card, individually tailored to each customer, or
the Equilibra interbank card.
In 2006, Caisse d’Epargne worked hard
to prepare for the upcoming reform to the legal
framework protecting vulnerable individuals.
PROTECTED INDIVIDUALS AND THEIR RIGHTS
In March 2006, Caisse d’Epargne teamed up with
Handijustice, a non-profit association dedicated to
the disabled, in the organization of the first symposium
devoted to the rights of protected individuals:
human rights, individual rights and rights to property.
Coordinated by professionals recognized for their
expertise in this area, this event attracted almost
300 participants from among professional and private
guardianship bodies.
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CORPORATE CUSTOMERS
C
aisse d’Epargne provides support
for businesses throughout their life
cycles – from initial start-up to
ultimate transfer or buyout – with
a full range of financing solutions
and banking services, and offers them
an array of equity solutions through its regional
and national investment funds. A total of 90 centers
and 250 specialized account managers are dedicated
to corporate customers.
This commercial panoply also includes the resources
of Banque Palatine, which supports the individual
Caisses d’Epargne through a series of cooperation
agreements.
110
business
in
is a Caisse d’Epargne customer
In a dynamic market, Caisse d’Epargne has
increased its market penetration by two points,
taking it to 10%. The creation of Natixis will give the
Caisses d’Epargne a highly effective, state-of-the-art
technical strike force in areas as important as
receivables management, employee savings plans or
specialized financing packages. Plans to merge
several Caisses d’Epargne to form larger, stronger
and more efficient regional banks will also be a
powerful force enabling the French savings banks to
speed up their expansion into this market and
become one of the top-ranking banks for their
clientele of corporate customers.
Sustained commercial activity
The Caisses d’Epargne’s aggressive sales
strategy attracted 2,000 new SME-SMI customers
in 2006, increasing the portfolio of business
customers to almost 20,000 companies.
The development of banking services led to an
8% growth in business flows, which rose to a total
of €30 billion at the end of 2006. Activity was
remarkably dynamic in short-term finance, with
lending of almost €1.6 billion, up by 25%.
In terms of new savings deposits, Caisse d’Epargne
took full advantage of its pioneering position in the
payment of interest on current accounts to increase
deposits to €1.6 billion, a rise of 17% over 2005 levels.
A SUBSIDIARY
SPECIALIZING
IN LONG-TERM
VEHICLE RENTAL
Created from the activities
of the Walter Spanghero
company, GCE Car Lease
offers long-term contract
rental solutions as an
alternative to standard
loan finance. In this
rapidly growing market
segment, the solutions
provided by GCE Car Lease
are mainly aimed at microand small- to mediumsized business customers
of Caisse d’Epargne and
Banque Palatine.
43
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Can a major
bank help
a gazelle
run faster?
of “gaz
elle
by finsa” held back
problencing
ms
The “Gazelles” label refers to the fastest growing small and medium-sized
companies in France – firms whose payroll is growing by more than 15%
every two years –. But one “gazelle” in three is held back owing
to a lack of finance.
To help these SMEs speed up their development under the best possible
conditions, Caisse d’Epargne provides a comprehensive programme of
advice and finance: needs analysis, optimized funding of operating cycles,
free customized support for international activities, and equity investment
if necessary.
44
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An enhanced offering
Caisse d’Epargne further enhanced its offering
of products and services for businesses in 2006.
For example, the Prêt Express is a loan that can be
released within 48 hours for investment projects
worth up to €40,000. An electronic certificate is
available so that companies can make VAT payments
online; there is also an online guarantee offering,
issued through the specialized subsidiary CEGI, which
is much appreciated for its speed of implementation
and flexibility of use.
In international trade finance, Groupe Caisse
d’Epargne has formed a partnership that allows its
corporate customers to use the technology and
network of the ABN AMRO Group, one of the world’s
top three players in international trade flow
management. These customers have access to a
business center with a highly effective management
tool developed by ABN AMRO and customized for
the Caisses d’Epargne.
In parallel, a team of account managers
specializing in international trade has been set up
within Banque Palatine.
They can be called in to support Caisse d’Epargne’s
account managers in offering SMEs and SMIs
solutions tailored to their needs.
www.
horizonentrepreneurs.fr
the Caisse d’Epargne website
for entrepreneurs
No. 1 PRIVATE PARTNER
OF FRANCE INVESTISSEMENT
Groupe Caisse d’Epargne is a founding member
of France Investissement, the new equity investment
solution for small and medium-sized companies,
alongside the Caisse des Dépôts and private investors.
As part of this process, the Group is setting up a fund
of funds worth more than €100 million, which will
focus its operations on venture capital, development
capital or transmission capital funds.
Company development and transfer:
Caisse d’Epargne steps up its role
With a presence in more than 60 funds, Groupe
Caisse d’Epargne is the leading private banking
investor in regional investment capital.
In addition, it was one of the first banks to launch
local investment funds (FIP): since 2003, some 20 of
these funds have been set up, to the tune of some
€90 million.
Finally, the regional investment capital teams
(Alliance Entreprendre in Paris, Sodéro Gestion
in Nantes, Galia Gestion in Bordeaux, Midi Capital
in Toulouse, Viveris Management in Marseille)
manage regional investment funds designed for
institutional investors.
In 2006, Groupe Caisse d’Epargne created
GCE Capital, a new national instrument to accompany
its regional offerings. The new entity will consist of
two divisions:
• a direct investment division via Alliance Entreprendre;
• a fund of funds management division, working via
the Masseran Gestion company, which is currently
being set up.
Caisse d’Epargne has also created a website
– www.horizonentrepreneurs.fr – specifically dedicated
to small and medium-sized businesses, where they
can increase their visibility by creating their own video
identity, using nothing more than a webcam. Internet
users can view these ID kits on the site, which also
offers a “News Blog” on current topics affecting
small companies.
45
CHAPTER
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3
THE SPECIALIST
BANK FOR REGIONAL
DEVELOPMENT
REAL ESTATE AND COMPLEX TRANSACTIONS
T
he creation of a new real estate and
complex transactions department
within the CNCE in 2006 brings real
estate and public-private partnerships
within the ambit of a single structure
with a view to offering global solutions
to customers, mainly local authorities working on
development projects.
At the same time, the creation of GCE Immobilier,
an entity that encompasses the Group’s real estate
services companies, will enable the savings banks
to reinforce and round out the range of services with
the development of skills in real estate promotion,
development, land, transactions, etc. GCE Immobilier
will also make it possible to foster and organize
synergies between the real estate subsidiaries.
25
%
Target:
of the French PPP market
Real estate projects:
strong growth in lending
In a very dynamic business environment,
lending by Groupe Caisse d’Epargne for real estate
projects was up by 73%, with new loan production
of €13.5 billion. With total lending and off-balance
sheet commitments of almost €16.2 billion, up
almost 66% in the space of one year, Groupe Caisse
d’Epargne is the second largest financial partner
to real estate professionals.
46
By way of example, in flagship operations in which
the Group is involved, the Caisse d’Epargne RhôneAlpes Lyon (CERAL) is both a shareholder in the Lyon
Confluence semi-private company (see opposite),
which is running France’s biggest urban development
operation (worth a total of €800 million for the first
phase), and a participant in the main banking pool.
In Marseille, the Cœur Méditerranée operation is
an example of the successful exploitation of synergies
between the Group’s different companies: the
developer, Constructa, a long-standing partner of
(CEPAC) and of the Group’s Socfim subsidiary, has
been on the site since 2003. The development
component (construction of a building complex with
a surface area of 20,000 m2, including two hotels,
6,000 m2 of offices, shops and car parks), which is
the subject of a short-term loan worth €16 million
and a completion guarantee, was taken over by
Socfim in 2005. In June 2006, Crédit Foncier and
CEPAC acquired the building for €48 million via
an ad hoc investment structure, and then set up an
appropriate long-term finance package. The assets
are managed by the subsidiary Crédit Foncier REIM.
This program is located at the heart of the
Euroméditerranée site, which is the largest business
real estate operation in Marseille. Having thus
positioned itself very early on in the proceedings,
the Group is now a player in one of Marseille’ flagship
operations where total profits are divided between
the various participants.
Caisse d’Epargne also offers real estate
management and transaction professionals
a comprehensive array of solutions. These notably
include escrow accounts and financial guarantees in
accordance with the requirements of the Hoguet law.
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authority resources by enabling increased public
investment without increasing debt, and open up
new markets for banks and companies.
In 2006, Groupe Caisse d’Epargne signed PPP
contracts worth more than €500 million, i.e., four
times as much as in 2005 reflecting the rapid
expansion of business in this sector.
The biggest contract is the Group’s participation in
the Reims tramline project. This €300 million
initiative is the first significant PPP operation
carried out by a local authority.
LYON CONFLUENCE
The Lyon Confluence semi-private company manages
the mixed development zone established for the
regeneration of the western part of the confluence,
south of the peninsula formed by the Rhône and the
Saône. The first section of this zone is a construction
area of 75,000 m2, corresponding to 620 housing units
(23% social housing) and 14,000 m2 of shops. Added to
this program is the Dockland district, along the Saône,
which will notably house the future headquarters of the
Le Progrès newspaper and of TLM, the local Lyons TV
station, a French customs building and a 4-star hotel.
Caisse d’Epargne Rhône-Alpes Lyon is involved in
the designated development zone through its stake in
the semi-private company and its position as a censeur,
or non-voting board member, and a line of credit on
the semi-private company of some €12 million. As regards
the Dockland component, there is a long-term loan of
€14 million on the real estate company promoting the
Le Progrès building, another of €6 million on the real
estate company for the former customs building and
a medium-term loan on the La Sucrière building,
which is hosting the Biennial of Contemporary Art.
Enhanced project monitoring
As far as the management of its transactions is
concerned, the Group is optimizing the follow-up
of real estate projects by deploying the V.bank promo
system in all its companies. This drive to provide
an enhanced management framework has been
enhanced with the development of a Basel II rating
tool for the Caisses d’Epargne and the subsidiaries.
Finally, the sharing of information and best
practices between individual Caisses d’Epargne has
been reinforced with the publication of an
operational manual on the short- and long-term
financing of real estate projects and the creation of
a document library.
Public-private partnerships (PPP):
off to a strong start
Hospitals, schools, police stations, tram
systems, sports facilities, etc.: public-private
partnership contracts are becoming increasingly
common. They offset the lack of state and local
2006 was also marked by the success of the
SAGI, which won the contract to renovate the
accommodation provided by the Ecole Polytechnique
school of engineering. This operation, worth some
€40 million, is a benchmark public-private
partnership in the sphere of public real estate.
Infrastructure
PPPs will run into
billions of euros over
the next 5 years
Operating in a combined role as investor, arranger,
adviser and lender, the Group is present in all the
major projects. Significant growth is expected
in 2007, following the completion of several existing
tender processes, which represented a deal flow of
€2 billion at the beginning of 2007.
Two specialized structures, capable of providing
support for the Caisses d’Epargne, operate as
investors. The FIDEPPP, the leading PPP
investment fund, created in 2005 with funds of
€200 million entirely subscribed by the Group, has
25% of its assets invested in infrastructure projects.
The Crédit Foncier subsidiary Cicobail specializes
in real estate lease financing for medium size
PPPs, such as the construction of police stations
or various public buildings.
PUBLIC-PRIVATE
POLICE STATIONS
The Caisse d’Epargne
de Midi-Pyrénées and
Cicobail have signed
a contract with five
towns in the Gers
département to build
police stations.
This €15 million program
is being carried out
in the form of a publicprivate partnership.
47
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Several
of Caisse
d’Epargne’s
specialized
subsidiaries
occupy
front-ranking
positions in
their markets
in France
or abroad
48
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THE SPECIALIZED
SUBSIDIARIES
49
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> COMMERCIAL BANKING
Several specialized brands complement Caisse d’Epargne’s core banking
activities: Banque Palatine for medium-sized companies, the OCÉOR network
for France’s overseas territories and development abroad, La Compagnie 1818
– Banquiers Privés – the specialists in private asset management. In insurance,
credit guarantees, consumer credit, personal care services or custody services
for private securities accounts, the Group’s networks are supported by a
panoply of dedicated subsidiaries. Several of them now support Groupe Caisse
d’Epargne’s development from within Natixis. The Group has also begun
working on its real estate strategy with the aim of creating a major,
stock-market listed services and financing structure. Two entities were set up
in 2006: GCE Immobilier, which operates in the competitive real estate market,
and GCE Habitat, specialized in social housing.
RETAIL BANKING
BANQUE PALATINE:
BANKING ADVICE FOR SMALLAND MEDIUM-SIZED COMPANIES
AND PRIVATE INDIVIDUALS
Banque Palatine, a subsidiary 62.69% owned by
the CNCE and 37.31% by the Intesa Sanpaolo
Group, works mainly with dynamic medium-sized
companies (Mid-Cap Plus). It also works with
well-off private customers and provides asset
management services for institutional customers.
Banque Palatine cooperates closely with the
Caisses d’Epargne and La Compagnie 1818.
In 2006, it opened branches in Douai, Mulhouse,
Saint-Etienne and Villepinte, expanding its network
to a total of 63 branches. It also launched an
efficient and up-to-the-minute e-banking solution:
Palatine Comptes.
It continued to develop its activities with
corporate customers in synergy with Groupe
Caisse d’Epargne, notably with the roll-out of
the Trade program. This comprehensive range
of foreign trade services and finance solutions
is founded on a partnership with ABN AMRO.
Confirming its position as a banking consultant
to medium-sized companies, Banque Palatine was
the lead manager in the IPOs for Société Foncière
Paris Ile-de-France and Terreïs-Groupe Foncia.
It also arranged finance for several takeovers,
in particular the senior debt financing of 3i’s
acquisition of a 40% stake in Empruntis.com
in a leveraged buyout operation (LBO).
50
Banque Palatine has reinforced its wealth
analysis function to meet the needs of high-rate
taxpayers and company directors.
As part of this process, it has also formed a new
partnership with Iselection, the Group’s real-estate
investment specialist. The bank has added an
innovative new life insurance vehicle to its existing
range with the so-called Palatine Dimensions policy
devised by Ecureuil Vie.
BANQUE PALATINE REWARDS AMBITION
In 2006, Banque Palatine launched the Prix de
l’Ambition prize in partnership with the La Tribune
Group. Open to small and medium-sized companies
with net sales in excess of €3 million, this prize is
awarded to companies that have performed
particularly well in terms of growth, international
development or recovery. It illustrates Banque
Palatine’s commitment to helping companies
to achieve their ambitions. The prizes were awarded
in all the different regions of France at the beginning
of 2007; the national Prix de l’Ambition was awarded
on March 28, 2007, in Paris, to the firm Naturex.
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Palatine Asset Management (PAM) continued to
strengthen its relations with institutional customers
and introduced two new products with the launch of
Palatine Or Bleu and Energies Renouvelables.
Several of its mutual funds performed well in awards
and rankings, in particular the Palatine Mediterranea,
Palatine Institutions and Palatine Court Terme
Dynamique funds.
Banque Palatine’s net banking income was
€232.8 million in 2006, up by 9.4%, and its net
earnings (IFRS) rose 60% to reach a total of €50.1
million.
LA COMPAGNIE 1818 – BANQUIERS
PRIVÉS – MEETING THE PRIVATE BANKING
NEEDS OF HIGH-NET-WORTH CLIENTS
Created in 2005, La Compagnie 1818 – Banquiers
Privés – operates in three areas:
• wealth management for its own clients, with
a global, open offering that enables it to offer them
the best products and the best managers;
• private asset management in support of Groupe
Caisse d’Epargne’s networks, in particular
the Caisses d’Epargne;
• asset management for a clientele of independent
asset management advisers, grouped together under
the banner of the Centre Français du Patrimoine.
These three specialist areas showed strong
growth in 2006. La Compagnie 1818 attracted close
to €1 billion in new deposits through these different
channels: more than €280 million of this came from
the Caisse d’Epargne network. Aggregate assets
under management exceeded the €10 billion mark.
The reinforcement of its multi-management offering,
with the launch of the Elite 1818 fund of funds range,
was highly successful, attracting investment of more
than €100 million in the space of six months.
La Compagnie 1818 – Gestion – also performed well
in mutual funds and in discretionary management.
In September 2006, the bank also took over the
business of Bryan Garnier Asset Management.
1
The net banking income generated by
La Compagnie 1818 was in excess of €50 million
in 2006, compared with €32.5 million in 2005, while
net income came to a total of €4 million.
This subsidiary was transferred to Natixis, which
also incorporates the two wealth management
entities of Banques Populaires: Banque Privée
Saint Dominique and Natexis Private Banking
Luxembourg.
OCÉOR: THE COMMERCIAL BANKING
ARM IN FRENCH OVERSEAS
TERRITORIES AND ABROAD
2006 was a particularly active year for the
OCÉOR Group, Groupe Caisse d’Epargne’s banking
network outside of metropolitan France.
It now has two specialized finance structures
reporting to it – OCÉORANE and INGEPAR –
together with the retail banking interests acquired
by Groupe Caisse d’Epargne in 2006 outside
France: Banque BCP Luxembourg and Crédit
Immobilier et Hôtelier (CIH) in Morocco.
To underpin these changes and maintain its growth
dynamics, especially in foreign markets, the OCÉOR
Group’s holding company Financière OCÉOR has
drawn up a strategic action plan to consolidate
its role as the network head. As part of this process,
the focus in 2006 was placed on establishing a new
structure based around “business line” departments,
responsible for centralized operational activities
and the management and monitoring of their
different activities in the banks and subsidiaries.
The OCÉOR Group continued to enjoy buoyant
commercial growth in retail banking. New products
were launched, notably in general insurance, loan
insurance, account guarantees, payment methods
insurance and life insurance.
Another significant event in 2006 was the creation
of a “Major Accounts” structure, essentially
responsible for setting up medium- and long-term
loans for banks in the OCÉOR Group.
It generated €212 million in new loans, based on
a number of significant operations, in particular
in Polynesia, the West Indies and New Caledonia.
Almost
€ bn
in new deposits
51
CHAPTER
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4
THE SPECIALIZED
SUBSIDIARIES
COMMERCIAL BANKING
The activities and results of the OCÉOR Group
are all performing well with net banking income up
13% at €261.4 million and net income up 34% to
a total of €23.8 million.
BANKS AND SUBSIDIARIES
BELONGING TO FINANCIÈRE OCÉOR
• Banque de Tahiti
• Banque des Antilles
Françaises
• Banque des Iles
• Crédit Saint-Pierrais
• Banque de la Réunion
• Banque de Nouvelle
Calédonie
• Caisse d’Epargne
de Nouvelle Calédonie
• Banque des
Mascareignes
• Banque BCP Luxembourg
• GCE Maroc
• OCÉORANE
• OCÉOR LEASE
• INGEPAR
With the takeover of the Orane Group – renamed
OCÉORANE – at the beginning of 2006, the OCÉOR
Group became the first banking institution to offer
small and medium-sized companies in the French
overseas territories a combination of finance and
tax planning services for mainland investors.
Indeed, OCÉORANE specializes in tax-efficient
transactions governed by the so-called “Girardin
law,” which allows reduced rate overseas financing
of business equipment. It holds 30% of this market.
INGEPAR, previously a part of the CNCE,
specializes in the design of complex asset financing
solutions, notably through tax leveraging. Set up
in 1999, INGEPAR has become a benchmark player
in the financing of aircraft, ships, trains, and
hotel and energy production projects, and of public
service concessions, especially in France’s
overseas territories.
52
Financière OCÉOR has owned 50.1% of Banque
BCP Luxembourg SA since 2006 alongside the
CNCE, which holds a 30% interest. Banque BCP
Luxembourg SA has a particularly strong customer
base among people of Portuguese origin. This
acquisition has allowed Groupe Caisse d’Epargne
to strengthen its multi-brand positioning in
the Luxembourg market.
Financière OCÉOR also holds Groupe Caisse
d’Epargne’s interest, alongside the Caisse de Dépôt
et de Gestion du Maroc, in Crédit Immobilier et
Hôtelier (CIH), a banking institution that plans to
develop its general banking activities for individual
customers with a full range of innovative products
and services.
BANQUE BCP FRANCE, CATERING
TO PORTUGUESE CLIENTS IN FRANCE
Banque BCP France joined Groupe Caisse
d’Epargne with Banque BCP Luxembourg in 2006
within the framework of a long-term partnership
agreed with the Portuguese banking group
Millennium bcp.
Thirty percent owned by the CNCE and 50.1% by the
Caisse d’Epargne Ile-de-France Paris, Banque BCP
France boasts a total of 63 branches, 43 of them
in Paris and in the greater Paris region. It works
with both individual and business customers.
Taking advantage of the soccer World Cup
in 2006, Banque BCP launched a campaign
specifically designed to maintain the loyalty of
existing clientele and attract new customers by
distributing gifts in the colors of the Portuguese
team to promote the opening of new accounts and
encourage customers to sign up for new products.
On the corporate side, the bank launched
garantie Sofaris, a guaranty covering the financing
needs of business organizations: start-up, capital,
innovation, business transfers and buyouts.
Banque BCP France recorded net banking income
of €65.3 million in 2006 and net income of
€9.5 million. At December 31, 2006, its outstanding
deposits stood at €1 billion and its loans outstanding
position at €569 million.
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INSURANCE
I
nsurance is one of the most dynamic growth
vectors for Groupe Caisse d’Epargne, which is
one of France’s foremost bancassurance
operators. A distributor and operator of
insurance companies providing cover for fire,
accident and miscellaneous risk, life insurance,
bonds and guaranties, the Group is also the main
shareholder in CNP Assurances, and France’s
largest provider of personal insurance.
LIFE ASSURANCE:
No. 2 BANCASSURANCE SPECIALIST
IN FRANCE
In 2006, life insurance consolidated its position
as the leading savings vehicle for individuals: total
life funds exceeded €1,000 billion in the course of
the year. For their insurance needs, the Group’s
networks go through CNP Assurances – France’s
premier personal insurance company in which
the CNCE and the French post office, La Poste, hold
a 36% interest – and through Ecureuil Vie. At the
beginning of 2007, the CNCE sold its 50% stake in
Ecureuil Vie to CNP Assurances. At the same time,
the distribution agreements between Groupe
Caisse d’Epargne and CNP Assurances were
extended until 2015 for life insurance and loan
protection insurance, with an adjustment of
the commission rates on distribution.
Distributed by the Caisses d’Epargne network,
Ecureuil Vie products generated life business
worth a total of €10.5 billion in 2006, up by 11%,
with more than 624,000 new policies taken out.
Net investment reached a record level of €6 billion,
and the total value of life funds reached
€80.5 billion, on a total of 4.8 million contracts.
2006 saw very strong growth in the Nuances 3D,
Nuances Plus and Nuances Privilège unit-linked
policies. Private management was extremely
dynamic, contributing 28% to revenues. The Garantie
Famille and Garantie Urgence provident insurance
range was successfully re-launched: 91,000 policies
were sold, as compared with 34,000 in 2005.
The CNCE and La Poste together own 36% of
CNP Assurances through a joint holding company.
CNP Assurances recorded net sales of €32 billion
in 2006, up by 20.6%, and net income of €1.1 billion,
representing an increase of 18%.
Foncier Assurance, a subsidiary 60% owned by
CNCE and 40% by Crédit Foncier, provides life
cover and loan protection products for Groupe
Caisse d’Epargne’s companies and for outside
partners. Specializing in innovation and personalized
life insurance solutions, its products received
numerous awards in 2006.
Foncier Assurance became a part of Natixis,
joining the Natixis Assurances entity.
GENERAL INSURANCE:
No. 3 BANCASSURANCE SPECIALIST
IN FRANCE
Groupe Caisse d’Epargne’s networks confirmed
their efficiency in the distribution of insurance
products protecting against fire, accident and
miscellaneous risks in 2006, selling 574,000 new
stand-alone or loan-linked policies. These policies
are designed by Ecureuil Assurances IARD,
the third-ranked bancassurance player in the
market (by volume of sales). It recorded net sales
of €272 million, up 22% over the year, and net
income of €11.5 million, representing an increase
of 55%. This dynamic level of growth reflects
increased sales efforts and the success of
the discounts offered to customers taking out
multiple policies.
FIRE, ACCIDENT AND MISCELLANEOUS RISK
INSURANCE PORTFOLIO AT DECEMBER 31, 2006
Number of policies
2006 Change/2005
Automobile insurance
240,000
+20%
Comprehensive home insurance 621,000
+16%
Medical and health insurance
340,000
+14%
Legal protection
346,000
+46%
Total
1,547,000
+22%
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4
THE SPECIALIZED
SUBSIDIARIES
COMMERCIAL BANKING
Muracef covers the risks of the Group’s companies
and provides non-bank insurance products to private
customers. After its mobile phone insurance policy in
2005, Muracef introduced a further innovation in 2006
with the market launch of savings insurance, a
product that covers all the savings built up by the
policyholder against accidental death. Another event
in 2006 was the launch of Garanties Santé, an
additional health policy based around a solution
aimed at private and business customers in
partnership with the MACIF mutual insurance
company. With this product from Muracef, Groupe
Caisse d’Epargne marks its move into the health
insurance field.
In 2006, Muracef recorded net sales of €55.5 million,
annual growth of 8.4% in high-risk insurance, and
19% in non-bank insurance products. Net income
stood at €6.3 million.
MACIF-MAIF PARTNERSHIP:
SERIOUS AMBITIONS
Groupe Caisse d’Epargne has entered into a
strategic partnership with two mutual insurance
companies: MACIF, France’s premier family insurance
provider, and MAIF, number one insurance provider to
the voluntary sector. The goal of the partnership is to
offer members and customers of the three groups a
global solution for their needs in insurance, banking,
assistance and personal care services. The holding
company CEMM – 50% Groupe Caisse d’Epargne,
25% MACIF and 25% MAIF – holds the funds invested
by the three partners in their joint activities.
In 2006, CEMM took a 50% stake in Séréna,
the personal care services platform in which
the MGEN(1) also has an interest. Groupe Caisse
d’Epargne distributes these services under
the name Ecureuil Serénité Services; they provide
Caisses d’Epargne customers with assistance
in organizing domestic help. The branches only
provide access to the personal care services platform
(the selling is done by Séréna). Two other projects
were confirmed: the merger of legal protection
management by the end of 2007 and a long-term
vehicle contract hire service for individual customers.
CEMM helped to develop Groupe Caisse
d’Epargne’s offering in the area of complementary
health insurance in partnership with the MACIF
Group, responsible for managing the products, and
with Muracef acting as the insurer. This offering
(1) Mutuelle Générale de l’Education Nationale – the mutual
insurance company of the French education system.
54
includes three levels of protection tailored to different
policyholder profiles and adjusted in line with their
needs for each type of health service. A contract
enjoying tax-deductible status under the so-called
Madelin provisions has been specifically designed for
the self-employed. The aim is to have approximately
120,000 contracts taken out per year once this offer
has been rolled out throughout the entire network
of Caisses d’Epargne.
FINANCIAL GUARANTEES:
THE ONLY “MULTI-BUSINESS”
PLAYER IN FRANCE
GCE Garanties is the holding company of three
specialized insurance companies: Saccef, CEGI and
Socamab Assurances. It also provides credit
guarantees directly to entities active in the social
economy and subsidized housing sector, in addition
to small to medium-sized companies. It generated
revenues of a total of €194 million in 2006, up 5%
compared with 2005.
SIMPLIFYING ACCESS TO LOANS AND INSURANCE
In July 2006, Groupe Caisse d’Epargne signed the AERAS
agreement, which came into force on January 6, 2007.
Thanks to loan protection insurance, this agreement
makes credit and insurance more readily accessible
for people in higher health risk categories. An AERAS
referral agent has been appointed in every Caisse
d’Epargne and information has been circulated to all
potential borrowers. 23,000 employees within
the network have received training on this new facility.
Saccef provides loan guarantees for private
borrowers and self-employed professionals. In this
capacity, it has underwritten 63% of the real estate
loans granted to individual customers of Groupe
Caisse d’Epargne. It recorded sales of €139 million
in 2006, up by 4% over the year.
CEGI is the no. 1 issuer of legal guarantees for
the builders of single-family houses and a major
player in regulated guarantees in the area of sales
on future completion (VEFA), and in the customs
and excise fiscal guarantees market. Its sales grew
9% in 2006, to reach a total of €44 million.
Socamab Assurances is a major player in the
market for legal guarantees granted to real-estate
management companies. It recorded sales of
€8 million in 2006, up by 4% over the year.
GCE Garanties, along with its three subsidiaries,
has now been transferred to Natixis; it took
advantage of this transfer in ownership to change
its corporate name to Natixis Garanties.
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OTHER SPECIALIZED SUBSIDIARIES
CEFi:
THE CONSUMER CREDIT SPECIALIST
The consumer loans issued by the Caisses
d’Epargne are managed by CEFi.
CEFi, which manages the Teoz card, the core
component in several revolving credit facilities
(whether linked to a personal loan or not), offers a
full range of personal loans. The IZICEFi application
and the IZIBOX server, both available to the branch
network, help to optimize sales and margins on
these loans.
In 2006, 193,000 accounts were marketed, taking
the aggregate number of Teoz accounts to more
than 691,200. New loan production was up by 3%, to
€624.4 million, and total outstandings grew by 8%
to reach a total of €855.6 million. CEFi’s net income
stood at €11.9 million, equal to growth of 69%.
The new consumer credit subsidiary, Creditis,
created by Groupe Caisse d’Epargne and the Italian
Carige Group, is taking full advantage of CEFi’s
expertise and know-how to capture significant
market share in Italy.
CEFi joined the Natixis group at the end of 2006,
to form – along with Novacrédit and Creditis –
a new entity, Natixis Consumer Finance.
Natixis Consumer Finance’s target is to become
a benchmark European player in the area of
consumer credit distributed via banking networks.
GESTITRES: 2006, A YEAR OF
STRUCTURAL CONSOLIDATION
In 2006, several key events affected the business
activities of Gestitres, a company specializing in
securities custody services for individual customers.
A subsidiary 66% owned by Groupe Caisse
d’Epargne and 34% by LCL, Gestitres experienced a
dual shift in its capital structure in the last quarter
of 2006. After the sale of LCL’s shares to the Caisse
Nationale des Caisses d’Epargne within the
framework of the Crédit Agricole SA securities
strategy, CNCE transferred 100% of the capital of
Gestitres to Natixis. Now part of Natixis’ financial
services division, Gestitres – alongside Natixis
Services Financiers – now shares the ambition of
building a leading platform in the custody of retail
and private banking securities in France.
The initial public offering of Natixis shares at
the end of 2006 was also a high point in the year.
With more than one million buy orders processed,
this operation was a technical success for
Gestitres, demonstrating its expertise in the area of
securities custody.
Other large-scale projects were also managed
during the year: the roll-out of the securities
workstation across the Caisses d’Epargne network,
continued improvement in the information systems
for the Bourse “Esprit Ecureuil” offering, transfer
of the company’s head office and implementation of
a quality process focused on operational excellence.
1
million
buy orders
processed for Natixis
Finally, business activities in 2006 were marked
by particularly high volumes for Gestitres:
13 million mutual fund orders and 3.5 stock market
orders were handled. The subsidiary manages
5.7 million securities accounts, 2.5 million of which
for the Caisses d’Epargne; its revenues are close
to €90 million and it has more than €106 billion
of assets in custody.
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THE SPECIALIZED
SUBSIDIARIES
COMMERCIAL BANKING
REAL ESTATE
T
he 2nd largest real estate bank for
individuals and number one for real
estate professionals, a front-ranking
player in social housing, service
provider, institutional investor, asset
manager: Groupe Caisse d’Epargne is
the largest and most comprehensive service
provider on the French market.
THE CRÉDIT FONCIER GROUP
As the leading French banking institution
specializing in real estate finance, Crédit Foncier
operates in four major areas: real estate finance for
individuals, property finance for businesses and
investors, secure financing with Compagnie de
Financement Foncier, and surveying and valuation.
Sustained growth in lending to individuals
Lending to individual customers grew by
€8.4 billion in 2006, taking aggregate loans under
management to €37.6 billion. The 10.7% increase
in new loan production over the year was achieved
with the same margins and longer maturity periods.
Crédit Foncier is very active in subsidized loans and
is the second largest distributor of guaranteed
interest-free solutions, an area where it boasts 24.6%
market share, and of below-market rate home loans
for low-income households (25.2%).
However, lending in the competitive sector accounted
for three-quarters of its business. Several new
products were launched, including the Relais Plus loan
aimed at the growing buy-to-resell market; a range
of loans, in particular for home improvements, designed
to take advantage of mortgage reform (the Prêt Viager
Hypothécaire, scheduled for introduction in 2007);
and services to non-residents settling in France.
Companies and investors: enhanced
synergies with the Caisses d’Epargne
In what was largely a buoyant market, all types
of lending to companies and investors rose
to €4.8 billion in 2006, an increase of 11% in the
space of one year.
56
In the structured real estate financing market,
production reached €1.4 billion. The Crédit Foncier
Group grew in all categories of corporate real
estate assets: logistics, offices and the medicosocial sector.
In the growing public-private partnership (PPP)
market, Crédit Foncier took an equity interest in
FIDEPPP (an investment fund for the development
of the public-private partnerships of Groupe Caisse
d’Epargne) and completed several operations
within the framework of company-builder
partnerships. One notable example is the PPP
agreed with the French Ministry of Foreign Affairs
for the construction, financing and maintenance
of its new diplomatic archive center.
Crédit Foncier
funds police
stations via PPP
In the extremely competitive social housing
market, Crédit Foncier consolidated its positions
in synergy with the Caisses d’Epargne. It is one of
the main providers of regulated loans (PLS, PLI,
and PSLA state-sponsored rental accommodation,
construction and “rent-to-buy” loans) and is also
actively involved in the unregulated market, offering
very long-term lending solutions. New loan
production rose to €0.7 billion in 2006.
In less dynamic conditions, production levels at
Cicobail – Groupe Caisse d’Epargne’s specialized
real estate leasing subsidiary – also enjoyed
growth, reaching a total of €0.3 billion, with a
significant contribution from the first medium-sized
real estate leasing PPP operations, such as the
financing of police stations.
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Setting up shop
in London to help
the British settle
in France: does
that make sense?
Almost
transactions a year
with British and Irish bu
yers
The British and Irish account for 48% of all foreign nationals acquiring property in
France, with almost 20,000 transactions completed every year. This is why Crédit Foncier
has opened an office in the heart of London City, the perfect place to forge strong relations
between key British opinion leaders and Crédit Foncier’s French branches, which offer
a comprehensive array of real estate loans designed for their customers across
the Channel. This combines with Foncier French Touch Services, an exclusive offering
designed to make life easier for cross-Channel buyers: from a bilingual adviser for one
day to a full home maintenance service. Crédit Foncier’s goal is to achieve a 50%
increase in its market share of real estate loans to non-residents bringing it up to
a total 9% of the French market. To find out more: www.creditfoncier.co.uk
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THE SPECIALIZED
SUBSIDIARIES
COMMERCIAL BANKING
COMPAGNIE DE FINANCEMENT FONCIER:
FRANCE’S LARGEST ISSUER AFTER THE FRENCH STATE
In the continuingly buoyant real estate
development market, Crédit Foncier maintained its
progress in 2006. Following the inclusion of business
contributed by Socfim, which became a Crédit
Foncier subsidiary in 2006, new loans (excluding
syndicated facilities) grew to almost €1 billion
in cash and €1.2 billion in signature commitments.
Crédit Foncier works with the big national developers,
with many regional developers, and in close
collaboration with the individual Caisses d’Epargne.
Crédit Foncier is also the leading player on the
highly specialized market in joint ownership loans
and has developed a package of banking services for
the regulated professions, as well as for real estate
agents. The average value of banking services in 2006
was €3 billion, divided between €1.9 billion in deposits
and €1.1 billion in investments.
CRÉDIT FONCIER GROUP: KEY FIGURES (2006)
• 3,975 employees
• 200 offices
• €17.3 billion of covered bonds issued in 2006
• €94 billion in total assets
• €70 billion customer loans and receivables
• €1 billion net banking income
• €350 million net income
Secured financing: record activity
Compagnie de Financement Foncier (CFF) issued
covered bonds for a total of €17.3 billion in 2006,
representing growth of almost 32% over 2005 levels.
75% of these were public issues, including
one €1 billion operation with a term of 50 years,
the longest secured bond issue ever made. This
operation demonstrates Crédit Foncier’s ability
to extend the duration of its resources to match
the development needs of Groupe Caisse d’Epargne,
which often requires financing with maturity
horizons in excess of 30 to 40 years. Other projects
such as the Prêts Viagers Hypothécaires will also
require very long maturity terms.
58
With an AAA credit rating, Groupe Caisse d’Epargne’s
mortgage bank is:
• Europe’s 2nd largest issuer of secured bonds.
• Europe’s 3rd largest non-sovereign issuer.
• The world’s 7th largest non-sovereign issuer.
In 2006, Crédit Foncier extended its financing
activity with local authorities in synergy with
the Group’s different companies: the individual
Caisses d’Epargne, the CNCE, IXIS, etc.
Its direct lending to the regional public sector
reached a total of €1.8 billion at the end of 2006.
It conducted its first dynamic debt management
(G2D) operations in partnership with the CNCE.
Virtually all the Caisses d’Epargne took advantage
of the possibility of providing 25- to 50-year fixedrate loans to local authorities directly from Crédit
Foncier’s balance sheet assets. Working through
Compagnie de Financement Foncier, Crédit Foncier
also developed the refinancing of the Caisses
d’Epargne’s loans in the regional public sector on
special AAA-rated terms. Six Caisses d’Epargne
sold assets in 2006, together worth a total of
€300 million.
Finally, 2006 confirmed the growth of loans
granted by the Crédit Foncier Group to the
international public sector, with aggregate new loan
production of €7.6 billion. These assets were
financed by Compagnie de Financement Foncier.
Surveying and valuations: a growing role
The subsidiaries Foncier Expertise and Serexim
employ 122 surveyors and appraisers spread across
24 regional offices, completed 34,000 appraisal
assignments in 2006 and generated revenues for
a total of €23.5 million.
These subsidiaries also developed appraisal services
in new sectors such as homes for the elderly, clinics
or industrial concerns. They played an expanded role
with the Group’s other companies, and developed
their customer base of foreign banks. Keeping pace
with Crédit Foncier’s innovations in other areas,
Foncier Expertise set up a system of specific
appraisal procedures for the future real estate
investment funds (OPCI), and developed the special
IT processes and estimation procedures required for
Prêts Viagers Hypothécaires.
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GCE IMMOBILIER:
A NEW SERVICES DIVISION DEDICATED
TO COMPETITIVE REAL ESTATE
GCE Immobilier, a holding company wholly-owned
by the CNCE, was created in February 2006 from
PEREXIA, whose holdings in the social housing
enterprises (ESH) were transferred to GCE Habitat.
The role pursued by GCE Immobilier is the
centralization and development of service activities
both in the competitive real estate market and in
the semi-public sector, and the provision of assistance
– notably to entities within Groupe Caisse d’Epargne –
in the definition of their real estate asset strategies.
Under the agreements made with the Caisse des
Dépôts in 2006, SAGI has now been sold to Société
Nationale Immobilière (SNI).
In 2006, GCE Immobilier chiefly focused its attention
on real estate services with the completion of several
development projects.
A new real estate services division
In the field of real estate services, Crédit Foncier
has transferred its majority holding in Foncier Services
Immobiliers to GCE Immobilier. This services holding
company, wholly owned by GCE Immobilier, has
changed its name to “GCE Services Immobiliers”.
In the spheres of business and residential real estate,
this holding company encompasses the KEOPS,
GEMCO, Gestrimelec, GCEI REIM, GCEI Conseil
Immobilier and Ciloger businesses. All these entities
are active in real estate sales, the management of
rental properties, consultancy services, asset
management and the administration of non-trading
real estate investment companies (SCPI). Together,
they boast a total of 210 employees and generated
combined sales of €47.8 million in 2006.
Several of these companies enjoy dominant
positions in their markets. The business real estate
consultancy firm KEOPS is ranked sixth in its sector
in France. The management company Ciloger is a
major market player; it manages nine non-trading
real estate investment companies (more than
53,000 members) in both the business and
residential sectors. At the end of 2006, it took steps
to position itself on the new market for the recently
created real estate investment funds (OPCI).
A 45%-owned subsidiary, a joint venture with the
Banque Postale (45%) and the CNP (10%), Ciloger plans
to promote its combined development, drawing on the
resources of the Groupe Caisse d’Epargne and Banque
Postale networks to attract new business in 2007.
In the area of property management, Gestrim
and Lamy continued to merge their activities in the
course of 2006 and settled on the name Lamy for the
joint entity. With net sales of almost €340 million, a
portfolio of 920,000 housing units and more than
3,800 employees, Lamy is a major force in the real
estate management field in France, ranking in
second place, a long way ahead of the number three
in the sector.
In the sphere of semi-public companies,
Sogima (Marseille) and Sacogiva (Aix-en-Provence)
in the South of France maintained their growth
and consolidated their partnerships with local
authorities. With more than 8,600 housing units
under management, they are both major players
in their markets.
External growth operations in 2006
GCE Immobilier acquired 34% of Iselection and
supervised the market launch of real estate
investment products distributed by the Caisses
d’Epargne for private investors.
In residential real estate, Groupe Caisse d’Epargne
took a 34% stake – 22% held by GCE Immobilier and
12% by Crédit Foncier – in Arthur Communication,
the entity controlling the Arthur l’Optimist brand
license, France’s fifth-largest network of estate agents
with 450 branches and completing more than
23,000 transactions a year. The aim is to double the size
of this network by 2009. This partnership gives Groupe
Caisse d’Epargne a significant role in a sector that
enjoys strong synergies with the Caisses d’Epargne
network and the other real estate businesses.
GCE Immobilier also acquired a 34% stake in the
Aegide Group, which develops assisted living facilities
for the elderly. It markets them through the Aegide
brand, while operations are carried out under the
Domitys label. Aegide operates five sites and at least
ten new projects are due to come on stream by 2008.
GCE HABITAT: A MAJOR DIVISION
DEDICATED TO SOCIAL HOUSING
Created in 2006 and wholly-owned by the CNCE, GCE
Habitat took over all of PEREXIA’s holdings in social
housing enterprises and HLM production cooperatives.
On January 19, 2007, GCE Habitat sold EFIDIS – which
manages 44,800 social housing units in Ile-de-France
– to SNI, and is also going to take over Crédit Foncier’s
10% stake in the Sonacotra state-run semi-public
company specializing in the management of migrant
worker hostels and social residences.
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THE SPECIALIZED
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COMMERCIAL BANKING
and the number of social housing construction
projects from 1,517 in 2006 to 2,900 in 2007.
Structured around four activities – rented social
housing, below market-rate home loans for lowincome households, nursing homes and health
centers, and real estate-related services – GCE Habitat
is a major division dedicated to social housing and
actions taken in the general public-interest.
Thanks to the subsidiaries of GCE Habitat and
to ERILIA, Groupe Caisse d’Epargne is committed
to active growth in all spheres of social housing.
Its aim is to make its own contribution to solving two
major challenges facing society: firstly, the housing
crisis and soaring property prices, which are forcing
ever more families to turn to social housing; and
secondly, the ageing of the French population and
rising dependency, which also call for the development
of new housing solutions.
Enhancing the quality of customer service,
applying the sustainable development policy,
adapting accommodation to the ageing of the
population… all these actions taken in 2006 will be
actively pursued in the future.
First-time buyers:
increase in new building starts
DOMEFI in the Ile-de-France region and Escaut
Habitat in Nord-Pas-de-Calais build and sell single
family houses available at low rates to low-income
households. The 2006 financial year saw a further
rise in the number of new building starts: 141 new
housing units (up from 100 in 2005). Ambitious targets
have been set for the coming years. Escaut Habitat is
actively pursuing its ambition to become the leading
promoter of new home ownership in its region.
GCE HABITAT: KEY FIGURES
Housing units under management
104,200
Rental housing units under construction
1,517
Rental housing units delivered
1,545
First-time buyer homes under construction
141
Nursing homes and health establishments:
working in synergy with the Foundation
SUSTAINABLE DEVELOPMENT IN ACTION
Within the framework of a GCE Habitat charter of
commitments, each subsidiary has earmarked one pilot
building or regeneration project and one project related
to water, energy or waste management. More than
15 projects were undertaken in 2006.
Starting in 2007, GCE Habitat has decided to seek
“Habitat & Environnement” certification for all
its housing development projects, and “Patrimoine
et Habitat” certification for all its refurbishment projects.
Subsidized rental accommodation:
sharp rise in new construction work
At the end of 2006, the rented social housing stock
managed by the EFIDIS (Ile-de-France), SIA (NordPas-de-Calais) and LOGIREM (Provence-Alpes-Côte
d’Azur) groups boasted a total of 104,200 units. In
response to the housing crisis, GCE Habitat’s social
housing enterprises have made a firm commitment:
they will increase the number of rented housing
units from 1,545 in 2006 to 1,700 in 2007,
60
GCE Habitat and the Caisses d’Epargne
Foundation for Social Solidarity have established
a major long-term partnership providing, firstly,
for the transfer of ownership of the real estate
holdings of some Foundation’s homes and
establishments to Axentia and Sofari (two subsidiaries
of GCE Habitat) and, secondly, for the construction
and acquisition of existing establishments from
local operators.
The preliminary legal, technical and financial
analyses were completed in 2006. The finance is
being restructured to optimize the conditions
governing the transfer of property. Ownership of
17 establishments will be transferred during 2007,
representing a total of 1,398 beds managed by
the Foundation. Work began in 2006 on three new
projects for the Foundation, totaling 204 beds. In
addition, 64 of the Foundation’s 71 establishments
underwent a technical and real estate audit carried
out by teams from GCE Habitat’s specialized
service subsidiaries, and the rest will be audited by
the end of 2007 prior to the launch of a modernization
program.
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> INVESTMENT BANKING
In November 2006, Groupe Caisse d’Epargne and Banque Populaire group
brought together their activities in corporate and investment banking, asset
management and financial services to create Natixis, which has now become
their jointly-owned listed banking institution. Boasting a staff of almost
23,000 people (more than 7,000 of whom work outside France), offices
in 68 countries, net banking income of €7.3 billion and consolidated equity
of €17.5 billion, Natixis is one of the front-ranking players in its sector
in Europe. It enjoys business relations with all the groups included in the CAC 40
share index, more than 80% of the companies included in the SBF 250, and
the majority of leading institutional investors. It is one of France’s four largest
corporate and investment banks. In asset management, it is the leading French
bank and one of the world’s top 15, as well as being the world’s third largest
player in credit insurance. IXIS Corporate & Investment Bank, IXIS AM Group,
CACEIS and CIFG – the subsidiaries comprising Groupe Caisse d’Epargne’s
investment banking arm – were all transferred to Natixis.
NATIXIS
A joint industrial strategy
Backed by an alliance between two major local
banking networks, each owning 34.44% of its
equity, Natixis in turn owns a 20% stake in both
these networks in the form of cooperative
investment certificates (CICs), a fact that further
strengthens the ties between Banque Populaire
group and Groupe Caisse d’Epargne.
20 BANQUES POPULAIRES
28 CAISSES D’EPARGNE
100%
20%
CCIs
100%
CNCE
(central institution)
BFBP
(central institution)
34.44%
20%
CCIs
34.44%
Free float: 31.12%
including DZ Bank: 1.9%
SPIMI: 1.7%
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THE SPECIALIZED
SUBSIDIARIES
INVESTMENT BANKING
A combined portfolio of complementary and diversified activities
– percentage contribution to the net income of the core business lines (€2.33 billion in 2006)
Pro forma 2006 figures excluding holding company activities.
Front-ranking positions both in France and around the world
CIB (1)
• No. 4 lender
to large-and
medium-sized
companies
in France.
• No. 10 on the
primary bond
market in euros.
• In the top 10
worldwide for
aero-industry
finance.
• No. 2 in France
for real estate
finance.
• No. 10 worldwide
for CDO issues(3).
Asset
management
• The front-ranking
bank in France.
• No. 5
in Europe.
• No. 13
worldwide.
(1) CIB: corporate and investment banking.
(2) PEPB: private equity and private banking.
(3) Collateralized Debt Obligation.
(4) With CACEIS.
62
PEPB (2)
Services
• Leading French
player in
the SME segment.
• France’s leading
manager of
employee savings
schemes.
• France’s leading
provider of
guarantees.
• No. 10 worldwide
in institutional
custody services(4).
• No. 3 in France for
electronic banking
operations.
Receivables
management
• No. 3
worldwide in
credit insurance.
• No. 3 in France
for factoring
services.
• No. 6 worldwide
in receivables
management.
• No. 7 worldwide
in corporate
information.
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CAPITAL MARKETS & FINANCING
IXIS CORPORATE & INVESTMENT BANK
Ten years of growth and innovation
In synergy with the Caisses d’Epargne
Building on its strong ethos of excellence and
specialization, IXIS Corporate & Investment Bank
(IXIS CIB] focuses its development on high value-added
activities with issuers, banks, institutional investors,
local authorities and major corporations. The bank is
active in the fixed-income and equity markets,
and also offers an array of financial engineering
and financing services.
IXIS CIB assists the Caisses d’Epargne and
the Group’s other subsidiaries in the area of
intermediation and sales, advice on asset allocation,
and support with complex offerings.
IXIS CIB, which became a subsidiary of Natixis
in November 2006, achieved its best results since
its creation 10 years ago with net banking income
of €1.8 billion, up 43%, and net consolidated income
of €573 million, up 90%.
Its teams help the Caisses d’Epargne to achieve
an optimum investment spread in the markets
for their surplus capital, by selecting the most
highly qualified managers for each asset class,
as a complement to the offering provided
by IXIS Asset Management Group.
Record results
In very favorable conditions, characterized by
strong growth in equity markets and in its financial
operations, IXIS CIB enjoyed an exceptional year,
especially in its equity businesses.
2006 saw strong growth in the range of products
and services available for large corporations, reflecting
the success of the partnership with Lazard bank and
the impact of the inclusion of Nexgen within the group.
In March 2006, IXIS CIB increased its 38% stake in
Nexgen and took full ownership of the Irish group,
which specializes in turnkey solutions for large
companies in equity derivatives, structured loans and
reinsurance. Nexgen has offices in Dublin, Singapore,
Paris and Milan.
New offices
in Madrid
and Dubai
IXIS CIB continued to expand its international
network with the opening of a new branch in
Madrid, an increase in staff numbers in London,
Hong Kong and Tokyo, and the launch of
its subsidiary IXIS Middle East Limited in Dubai.
A DOUAI-PARIS-TOKYO FINANCING PACKAGE
FOR THE DOUAI STREETCAR SYSTEM
The Caisse d’Epargne des Pays du Hainaut is financing
the future Douai tramway to the tune of €10 million.
At the heart of this success are local contacts and
financial engineering. In putting together its financing
package, Caisse d’Epargne turned to the expertise of IXIS
CIB, which designed a structured loan with a 30 year
term. For the first 10 years, the loan benefits from an
extremely low guaranteed fixed interest rate, thanks to
a solution tied to the Swiss franc exchange rate. The final
development of this product, which goes by the name
of Helvetix, required input from the Tokyo traders.
Caisse d’Epargne has concluded other significant
operations with the support of the teams from IXIS CIB:
the €98 million hospital complex in Valenciennes,
working in tandem with the Caisse d’Epargne du
Pas-de-Calais; the €42 million Douai hospital project;
and 24% of the second Valenciennes tramline, as part
of a G2D dynamic debt management operation.
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THE SPECIALIZED
SUBSIDIARIES
INVESTMENT BANKING
IXIS CIB also devises debt securitization
products such as Collateralized Debt Obligations
(CDO), which allow the Caisses d’Epargne to offset
their sector exposure and better spread their risks.
The bank is one of the top 10 specialists worldwide
for this type of product. Although they are
specifically designed for the French savings banks,
these CDOs are also available to outside investors.
IXIS CIB supports the Caisses d’Epargne in all
complex services to local authorities and institutions:
debt restructuring advice, structured finance, bond
issues, exchange rate hedging. More than 16% of
the loans granted to local authorities by the Caisses
d’Epargne are arranged by IXIS CIB, which also
carries part of the commitments on its balance sheet.
CAPITAL MARKET ACTIVITIES
In Asia, the Hong Kong-based subsidiary
IXIS Asia Limited had a successful second year;
this company distributes structured products based
on equity, fixed-income and forex derivatives,
develops guarantees and sets up funds of funds.
Its business more than doubled in 2006. It generated
a flow of transactions with a large number of
customers in the Chinese zone, and entered into
distribution agreements with retail banking networks
in Hong Kong, Taiwan and Singapore.
Fixed-income markets:
record activity
The year saw significant growth in the volume
and profitability of activities in fixed-income
derivatives, in particular plain vanilla products,
where volumes doubled.
IXIS CIB confirmed its positions in French
government bonds as the third highest ranked
primary dealer in French government securities
(spécialiste en valeurs du Trésor, SVT) on the primary
market and number one in the quality ranking.
Innovative complex products
Capital market activities, founded on research
and complex products, make the largest
contribution to the results recorded by IXIS CIB,
which boasts a substantial clientele of financial
institutions, banks, management companies and
insurers. IXIS CIB offers these clients an array of
innovative investment products for the management
of their equity, and highly efficient tools designed
for their own customers.
The bank is also developing its activities with
large corporations by building on the agreement
with Lazard Bank to cooperate in the primary
market for shares of companies with a market
capitalization in excess of €500 million. On its side,
Lazard offers its customers the complex products
developed by IXIS CIB, such as structured finance
solutions, securitization or bond issues.
In Europe, capital market activities boasted
improved results from most of the business lines.
Capitalizing on its acknowledged expertise in
bonds, IXIS CIB took full advantage of its proven
expertise in new products such as hybrid
derivatives and structured products. The activities
of the equities business line were particularly
strong across all market segments.
In the USA, the IXIS Capital Markets subsidiary
recorded net banking income of $637 million, up by
26%, with net income of $118 million, representing
an increase of 30%. These positive trends are
mainly due to securitization activities on
the CMBS(1) and ABS(2) desks.
64
French no. 1 and
world no. 4(3)
in covered bonds
With 235 public issues for an aggregate total of
almost €41 billion(3), the bank confirmed its position
on the primary Eurobond market and reinforced its
global positions, notably on the secured bond market,
where it is one of the world’s top four with issues
worth more than €15 billion in 2006.
LAUNCH OF A MORTALITY-LINKED BOND
FOR AXA (OSIRIS OPERATION)
IXIS Corporate & Investment Bank acted as co-bookrunner
for AXA on the first issue of a shelf program set up
to transfer mortality risk to the financial markets.
CIFG Europe, Groupe Caisse d’Epargne’s mono-line insurer
and IXIS CIB’s sister company, guaranteed the B1 notes
issued. The total value of the shelf program was
€1 billion. IXIS CIB was responsible for bringing the
“mortality bonds” to the market in Europe and for
increasing investor interest in the product. The operation
was highly successful in Europe and in the USA:
the issue was three to six times oversubscribed,
depending on the tranche.
(1) Commercial Mortgage–Backed Securities.
(2) Asset–Backed Securities.
(3) Within the framework of the tie-up with Natixis, the respective
positions of IXIS CIB and Natixis were merged in the 2006 league
tables. Source: IFR.
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IXIS CIB ran several innovative operations
in 2006, in particular the first issue of 50-year
covered bonds (obligations foncières) for Compagnie
de Financement Foncier, the first issue of
mortality-linked bonds for AXA and, jointly with
Natexis, an inflation-indexed CADES issue.
The bank also led the first issue of covered bonds
by HSBC in London and 14 issues of cédulas
hipotecarias in Madrid.
It maintained its development on the large
corporation market as joint lead manager
and bookrunner on a new 10-year, €1 billion
benchmark issue for Veolia Environnement.
Equities and arbitrage:
outstanding performance
IXIS CIB is a trader and distributor of high
value-added equity derivatives. Growth in this activity
was very dynamic, driven by new additions to the
product range and the internationalization of its
business. Among other developments, the bank set
up a multi-asset hybrid product, which is distributed
in Italy by the insurer Centrovita.
IXIS CIB boasts a substantial arbitrage business
and 2006 was a particularly good year. Taking full
advantage of a buoyant market, the dedicated teams
achieved an outstanding performance on directional
positions and on mergers and acquisitions.
IXIS SECURITIES, FRANCE’S THIRD-RANKED
FINANCIAL RESEARCH BUREAU
With 25 places in the top 3 of the L’Agefi 2006 awards
for financial analysis, IXIS Securities confirms
the quality of its research and its services:
• no. 2 in share selling, trading & execution;
• no. 3 in market strategy research, economics
and French securities;
• no. 3 in sector research with 1st or 2nd ranked
status in many industries where French companies
command strong positions, including food processing
and utilities (no. 1), beverages, aerospace,
the automative industry, telecoms, services,
pharmaceuticals, media, recreation and hotels,
building and construction materials (no. 2).
IXIS CIB operates as a broker through
IXIS Securities – one of France’s four leading
stockbrokers – and IXIS Midcaps, which together
cover 350 European securities. IXIS Securities has
reinforced its positions with institutional customers
and gained market share in France, the UK and
the USA.
FUND STRUCTURING
Good opportunities
The fund structuring activity based on alternative
management funds enjoyed strong growth, both
in Europe and in Asia. In May 2006, IXIS CIB set up
a unit dedicated to discretionary management
in this field to enhance the security and quality
of related activities to a higher level.
IXIS ENVIRONNEMENT & INFRASTRUCTURES:
FOCUS ON SUSTAINABLE DEVELOPMENT
IXIS E&I, a subsidiary of IXIS CIB, sets up, invests
and manages investment funds for the equity funding
or quasi-equity funding of environmental and
infrastructure projects.
IXIS Environnement & Infrastructures already manages
three investment funds:
• FIDEME, a €45 million fund, finances renewable
energy and waste recycling projects;
• European Carbon Fund (ECF), with assets of almost
€143 million, combats the greenhouse effect
by acquiring emission credits and quotas;
• FIDEPPP, with assets of €200 million, invests
in public-private partnerships.
In Asia, the bank has taken advantage of the
partnership set up with SPARX Asset Management,
Japan’s premier independent asset management
company. It consolidated its position in the area of public
offerings of hedge fund-indexed structured products.
The London-based subsidiary IXIS Alternative
Investments gave new impetus to the development
of alternative products. In particular, it launched its
managed funds platform, characterized by controlled
investment risk and greater transparency for
investors.
IXIS Capital Partners, the fund management
subsidiary specializing in real estate investment,
completed a number of acquisitions on behalf of its
Captiva 2 fund. In particular, it reinforced its position
in Germany, where it was extremely active in
purchasing 39 office buildings in Hamburg for a total
value of €815.5 million. These assets are let to
the city of Hamburg at market rates.
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Can a large
banking group
combat
the greenhouse
effect?
Reduced emissions of almost
metric tons CO2 equivalent
between 2007 and 2010
Energy consumption and economic development are closely linked, but they generate
greenhouse gas emissions that threaten the long-term equilibrium of our planet. Annual CO2
emission quotas are one way of encouraging firms to cut their emissions: they can sell
their emission credits if they have not used them all; if they exceed the threshold, they offset
their emissions by funding projects that contribute to the fight against the greenhouse effect.
Managed by IXIS Environnement & Infrastructures and partly underwritten by Groupe Caisse
d’Epargne, the European Carbon Fund is dedicated to these operations. In 2006, it completed
the largest-ever private transaction in this field with the French chemicals group Rhodia.
This deal will provide funding for projects in Brazil and South Korea that will reduce
emissions by the equivalent of almost 5 million metric tons of CO2 between 2007 and 2010.
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CORPORATE FINANCE
Accelerated growth
The Corporate Finance division covers activities
in primary equity markets in association with
Lazard, and provides consultancy services.
The partnership with Lazard generated
a substantial volume of business in the large
corporation market. Working together under
the Lazard-IXIS banner, the two companies were
global coordinator for the €5.5 billion Natixis
initial public offering.
Lazard-IXIS was the lead manager and global
coordinator for three other major IPOs: Icade,
the biggest real estate company listed in Paris;
Parrot, the only technology firm to have survived
difficult market conditions in the early summer;
and EDF Energies Nouvelles, a world leader
in renewable energy, a stock that enjoyed
exceptional demand.
In the area of new equity issues, Lazard-IXIS
took part in the operations successfully completed
by Vinci and by BNP Paribas, and managed
the reclassification of a block of 238 million
Mercialys shares, having managed the latter’s
IPO six months earlier.
Lazard-IXIS also managed Lagardère’s sale of
its 7.5% stake in EADS.
The inclusion of Nexgen made it possible
to generate strong growth in activities with large
corporate customers throughout Asia.
Under the IXIS Corporate Solutions brand,
IXIS Corporate & Investment Bank designs and sets
up tailor-made structured financing solutions.
IXIS CIB also provides consultancy services on
mergers & acquisitions and balance sheet
enhancement, in particular in the infrastructure,
real estate and local authority services sectors.
In the real estate market, the bank provided
advisory services for various real estate mutual
funds (OPCI) covering assets worth several billion
euros, and also advised the firm Les Nouveaux
Constructeurs prior to its Eurolist launch.
There was strong growth in consultancy services
in the area of infrastructure, energy and utilities
in 2006. In particular, IXIS CIB was adviser to
the Caisse des Dépôts for the acquisition of the
49% stake held by Eiffage in the Compagnie Eiffage
du Viaduc de Millau.
FINANCING AND LOANS
Extremely buoyant activity
The financing activity was marked by extremely
buoyant new loan production generated in liaison
with, and in support of, the Caisses d’Epargne
and the other Group companies. IXIS CIB obtained
mandates as lead arranger and coordinator
in 17 operations.
The year saw sustained growth in structured
loans with financing arranged for infrastructure,
acquisitions and leveraged buyouts, securitization,
and real estate.
MAJOR SPONSOR OF THE MUSÉE DU QUAI BRANLY
In 2006, IXIS CIB was one of the seven major sponsors
of the new museum of indigenous arts, in Paris.
The bank is backing the creation of a documentary web
portal, specifically designed to provide online access
to the 300,000 works in the museum’s collections,
and the setting up of a multimedia mezzanine focused
on world music, anthropology and language.
These two projects perfectly match the values promoted
by IXIS CIB: creativity, research and innovation.
In the corporate market, IXIS CIB was arranger
and coordinator in the financing of the acquisition
of the Autoroutes Paris-Rhin-Rhône company by
Eiffarie, a group set up by Eiffage and Macquarie,
and in the financing of France’s biggest wind farm
by the German corporation Volkswind GmbH.
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THE SPECIALIZED
SUBSIDIARIES
INVESTMENT BANKING
The bank also launched a new intermediation
activity in the secondary market for corporate and
structured syndicated loans.
The bank was the arranger mandated by AXA
Private Equity to finance the leveraged buyout of
the firm AIXAM-MEGA, the European leader for cars
that do not require a driving license.
ARRANGING FINANCING FOR FRANCE’S
LARGEST WIND FARM PROJECT
The German group Volkswind GmbH appointed IXIS CIB
lead manager to arrange a senior debt issue for a total
of €69.1 million to finance the wind farms based
in Cormainville and Guillonville in the Eure-et-Loir
département south of Paris. This operation represents
the most ambitious wind-energy project undertaken in
France with a total of five wind farms generating a total
of 60 megawatts.
Vestas has been selected for the supply, management
and maintenance of 30 wind turbines, whose electricity
will be bought by EDF at official rates. The FIDEME
investment fund is financing the mezzanine tranche
of the issue. The senior debt is entirely underwritten
by IXIS CIB.
In the area of securitization operations, apart
from the CDOs designed for the Caisses d’Epargne
and placed in part with third-party investors,
IXIS CIB was arranger and lead manager of
a managed CDO on behalf of New Bond Street.
It was arranger and lead manager for the first
commercial mortgage-backed securities (CMBS)
operation in Europe, within the framework of the
Infinity CMBS program recently created by the bank.
It was also arranger and lead manager for
a collateralized loan obligation (CLO), with a bipolar
fund management structure comprised of IXIS CIB
and LightPoint Capital Management.
In the USA, the securitization specialist
IXIS Capital Markets is very active in the mortgagebacked securities (MBS) market. The dynamic
nature of the securitization business (MBS/ABS)
and the growth in activity in structured products
(CDO) were reflected in markedly improved results.
The firm securitized $4.1 billion of ABS in eight
operations, worth a total of $5.6 billion.
It also sold and securitized more than $3.3 billion
of CMBS in seven securitization operations totaling
$19.5 billion.
In the commercial real estate sector, IXIS Capital
Markets generated $4.8 billion of fixed or variable
rate loans and mezzanine financing for real estate
acquisitions and recapitalizations in the USA.
It also set up and placed CLO for a total of $14.6 billion.
Project financing
IXIS CIB was also arranger and lead manager
of a mortgage financing package based on
commercial mortgage-backed securities (CMBS),
development loans and a corporate loan on behalf
of ALTAREA, a fast-growing real estate company
operating in the shopping center segment in France
and Europe.
It provided hybrid debt and equity financing for
IFE Conseil, the investment adviser for IFE Fund
and IFE II, two specialized mezzanine financing
vehicles in mainland Europe.
68
IXIS CIB is one of Europe’s leading providers of
financial advice in the infrastructure, environment
and energy sectors. With this expertise, it is well
placed to meet the needs of local authorities and
to aspire to a significant role in the field of publicprivate partnerships (PPP), drawing on the skills
and financing capacity of its different entities.
In PPP projects, IXIS CIB aims to provide global
financial engineering expertise and to act as lead
manager for debt syndication operations.
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8
th
largest
European adviser and arranger for project
and infrastructure financing(1)
In 2006, IXIS CIB contributed to several major
projects, including the €100 million financing
package for the eastern branch of the Rhine-Rhone
high-speed rail link, which will eventually connect
Germany to the Mediterranean.
Extremely active in the sphere of public
transport, IXIS CIB’s teams lent their support to
the Caisses d’Epargne in putting together a
financing package for the tram systems in Douai,
Le Mans, Montpellier and Reims. Built within
the framework of a public-private partnership
with a public service component, the €250 million
Reims tram system was the first privately funded
trolley car project in France.
A dozen other PPP projects were set up in 2006
to fund police stations, a police school and a
nursing school, an archive center and various
hospital buildings.
IXIS CIB ADVISES
THE FRENCH RAILWAYS ON EUROPE’S BIGGEST
PPP INFRASTRUCTURE PROJECT
IXIS CIB is the financial advisor to Réseau Ferré
de France (RFF), the entity responsible for France’s rail
network, for the tender on the public service project
to build the South Europe Atlantic high-speed railway
line (SEA HSL).
The aim is to construct a new high-speed link between
Tours in central France and Bordeaux on the west coast
in order to bring Bordeaux within two hours 10 minutes
of Paris, as compared with the current three hours.
IXIS CIB is assisting RFF and the French government
throughout the project allocation process. In this role,
the bank is responsible for promoting it to potential
partners, manufacturers and investors. It sets up and
implements the allocation procedure. It assesses the
financial aspect of the bids submitted within the call
for tender process. Worth some €5 billion, this is the
largest privately financed infrastructure project in
Europe to date.
A PPP FOR THE QUAI D’ORSAY
The construction of the new complex for the French
Ministry of Foreign Affairs in Seine-Saint-Denis north
of Paris is being financed as a PPP. Crédit Foncier, Icade
and Caisse des Dépôts have all injected capital into
the project. The Caisse d’Epargne Ile-de-France Paris and
Compagnie de Financement Foncier are providing
the bank financing for this project, which represents
a total of €48 million.
8
th
largest
MLA(2) in France
(1) ) In the first half of 2006. Source: Thomson Financial,
Second Quarter 2006.
(2) Mandated Lead Arranger. Source: DEALOGIC.
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Can an insurance
company help
to develop
wind power?
farms
d
n
i
39 w
on capacity
ti
c
u
d
ro
p
l
ta
with a to
of 330 me
gawatts
CIFG moved into the wind power sector in April 2006,
when it underwrote part of the bond issue conducted
by the securitization specialist, Breeze 2. CIFG persuaded
various investors to come into this innovative financing
package, inviting them to acquire securities covered
by its triple-A guaranty. Breeze 2 is funding a portfolio
of 39 wind farms located in France and Germany, of which
only 15 were operational at the time of the issue. These
39 farms represent total production capacity of 330 megawatts.
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FINANCIAL GUARANTY – CIFG
Europe’s 1st native credit enhancer
By offering investors an unconditional guaranty
of payment, CIFG Group facilitates investment in
structured products and the financing of public-private
projects or partnerships. It allows issuers to obtain
financing more cheaply and offers investors new risk
profiles in the form of enhanced products.
Created in 2002, CIFG is the only provider of
financial guaranties to have developed both in Europe
and the USA. Its subsidiaries, CIFG Europe,
CIFG Assurance NA and CIFG Guaranty, all boast
the highest possible credit ratings: AAA/Aaa/AAA.
The Group operates in all market segments: local
authorities, public-private partnerships, project
financing and structured finance. Its ability to cover
possible losses on its guaranties was in excess
of $1.3 billion on December 31, 2006. CIFG has
been a subsidiary of Natixis since November 2006.
Strong rate of growth
Despite persistent pressure on loan margins
and stringent requirements regarding the quality
of the risks covered, CIFG has maintained a good
rate of growth. The net par written in 2006 rose
to $36.1 billion, up by 70% on 2005.
CIFG guaranteed 625 new projects, including
almost 500 US local authority financing operations.
Public investment operations grew once again.
In the US local authority sector, primary issues
represented 98% of the net par written by CIFG.
In structured financing, 12 public issue operations
were underwritten by CIFG in the USA and Europe,
in different sectors: residential mortgages,
leasing operations and mortality risk bonds.
These operations were very well received by
investors and confirmed the perceived reliability
of CIFG, which receives the same respect as
its older competitors.
CIFG consolidated its positions on the
collateralized debt obligations (CDO) and
collateralized loan obligations (CLO) markets,
notably with a 20% market share in CLO issues
in Europe. In 2006, as in 2005, CIFG was the only
company to provide a primary guaranty on
a public issue of “non-conforming” residential
mortgage-backed securities (RMBS) in the UK.
In terms of infrastructure and project financing,
as well as sovereign and sub-sovereign risk,
CIFG extended its scope of action with operations
that now cover nine European countries, some of
them new European Union members.
SUCCESS OF THE 1ST MORTALITY-LINKED
BONDS ISSUED BY AN INSURANCE COMPANY
CIFG provided a €100 million guaranty on the bond
issue launched by AXA in November 2006.
Under this operation, the risk of a change in mortality
rates is transferred to the financial markets.
The operation was completed successfully, in particular
with the support of IXIS CIB, in Europe and the USA,
and was very largely oversubscribed. This outcome
and the interest aroused by the operation has paved
the way for similar transactions in 2007.
Over the year, CIFG expanded its activities to
include new asset classes: wind farms, sovereign
issues by new European Union member states,
securitization of film catalogue revenues,
equipment lease financing portfolios, portfolios
of loans to retailers and small companies in the US
and portfolios of net interest margin securities.
CIFG has also moved into insurance-related
market transactions, in particular – apart from
the mortality bonds – developing a presence
in so-called “Triple X securitization,” arising from
the US regulations of the same name.
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ASSET MANAGEMENT – IXIS ASSET MANAGEMENT GROUP
Once again, 2006 was a year of strong growth
for IXIS Asset Management Group (IXIS AMG).
Its portfolio of assets under management increased
by 13% (excluding exchange rate effects),
to €468.2 billion. Revenues were up 22%, to more
than €1.2 billion.
In November 2006, IXIS AM Group became a part
of the asset management division of Natixis, which,
in addition to IXIS AM Group and its subsidiaries,
includes Natexis’ former subsidiaries, Natexis AM,
Natexis Asset Square, Natexis AM Immobilier and
Axeltis Limited. Natixis is now France’s leading
asset management company, number four in
Europe and one of the top 15 worldwide(1).
In 2006, the new division boasted a total
of €584 billion of assets under management.
IXIS AM Group also includes specialized
distribution entities: Ecureuil Gestion for
the Caisses d’Epargne network, IXIS AM Advisors
Group in North America and IXIS AM Global
Associates for cross-border sales.
This means that even the smallest of IXIS AMG’s
asset management companies enjoys substantial
commercial strength.
Assets under management by asset class
As a percentage
IXIS AM GROUP
•
•
•
•
•
Assets: €468.2 billion; +13%
Increase in assets: €53 billion
Net deposits: €25.1 billion
Net sales: €1.2 billion; +22%
Staff: 2,320
IXIS AM Group offers a wide range of skills to
a clientele of institutional investors, companies,
distribution networks and large private investors.
It has some 15 asset management subsidiaries
in France, Europe, the US and Asia. This federal
model attracts talent and fosters, creativity and
new entities of various sizes.
(1) Source: based on data from the IPE (Investment & Pensions Europe)
survey of June 2006 (assets under management December 2005).
72
Assets under management by investment vehicle
As a percentage
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Sustained activity in Europe and Asia
In Europe and the Asia-Pacific region, assets
under management grew by 7% to reach a total
of €280.5 billion.
In France, the assets managed by IXIS Asset
Management France, IXIS AMG’s leading
management company, stood at €244 billion at the
end of 2006, up by 6% over the year. IXIS AM France
gained the trust of 26 new corporate clients, banks,
mutual insurance companies and pension and
health providers, and actively increased its role with
its clientele of independent asset management
consultants.
A new team focused on structuring, analysis,
modeling and solutions (SAM’S) is responsible
for developing tools for the in-depth analysis of
proposed structures, handling quantitative aspects
and structuring products.
IXIS AM France:
€244 billion
under management
Five new funds were launched: IXIS Actions Euro
Value and IXIS Actions Euro Croissance; IXIS CDO
Fund; Insertion Emplois Equilibre – in the socially
responsible investment range – and Natixis Optimio,
a mutual fund focused on regular returns.
IXIS AM France also enhanced its offering with
new dynamic money market products, creating highly
diversified instruments that deploy all IXIS AMG’s
expertise in a combination of alternative management,
senior bank loans and securitization vehicles.
IXIS AM FRANCE’S FLAGSHIP FUNDS IN 2006
• The dedicated institutional fund IXIS ABS PLUS
increased its assets from €106 million at the end of
2005 to €1,531 million at the end of 2006.
• The assets in IXIS AM Emerging Europe and
IXIS Europe Avenir grew by some 300% over the year.
• IXIS Trésorerie Plus more than doubled its assets.
AWARDS FOR IXIS AM FRANCE
Investir Magazine
• Silver award to IXIS AM Emerging Europe RCA,
5-year investment fund category.
L’Agefi Grand Prix for Asset Management
• 1st prize: Ecureuil Harmonie, Diversified category
Euro-3 year.
• 2nd prize: IXIS AMA Pacific Rim Equities,
Asian Equities category (excluding Japan).
Le Revenu
• Bronze Trophy awarded to CDC Trésor Première Oblig,
10-year Eurobonds category.
Mieux Vivre Votre Argent
• 7 labels awarded.
Lipper Fund Awards France
• Best fund certificate for IXIS Europe Avenir,
5-year European Equities category.
• Best fund certificate for IXIS Euro Première 7-10,
10-year Euro Zone Bonds category.
“Talents de la gestion 2006” Prize, Multi RatingsGroupe Euronext
• 3rd place for IXIS AM in the Government Bonds
category.
Despite the reduction in credit spreads, there
was sustained growth in CDO activity: the six
products created in 2006 generated 61% growth
in CDO investments.
IXIS Private Capital Management (IPCM),
the subsidiary specializing in open architecture
multi-management, recorded excellent commercial
results: its net inflow of funds doubled to
€1.3 billion, taking total assets under management
to €2.8 billion, up by 75%. IPCM’s six diversified
funds regularly receive a 4 or 5 star S&P Micropal
or Morningstar rating for their three-year
risk/return ratio.
The equity funds and the absolute performance
funds are generally ranked in the first quartile in
their category.
The funds distributed by Ecureuil Gestion
grew by 10%, to €36.9 billion, with a net inflow of
€1.3 billion.
Ecureuil Gestion successfully contributed to
the distribution of Collection Finance Ecureuil in all
the individual Caisses d’Epargne: guaranteed
capital funds; the Sélectionnés funds (five funds)
and Bourse “Esprit Ecureuil”. A new range
of guaranteed capital funds, known as Robusta,
was introduced together with a guaranteed capital
and performance fund, offering 14% on maturity,
called Parka.
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Can an investment
fund reconcile
profitability with
new job creation?
jobs
d
han
lidate
More t d or conso4
create since 199
It does not represent a massive change in investors’ preoccupations but,
over the years, socially aware investment has attracted more and more savers
who would like to include an ethical component in their savings strategies:
today, more than 200,000 individuals invest a proportion of their savings in
socially aware vehicles, either directly or indirectly through employee savings
schemes. With funds of €181 million, the Insertion Emplois job creation fund is
a leader in this field. Created in 1994, it is the oldest fund of its kind in France.
Since then, it has contributed to the creation or consolidation of more than
20,400 jobs, while still providing high returns: average returns on the Insertion
Emplois fund are similar to SBF 120 levels. In 2006, it grew by 17.5%.
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Record growth in the USA
Funds managed by the USA subsidiaries grew
by 22%, to a total of €187.7 billion ($247.1 billion).
This growth, the highest ever achieved by these
subsidiaries, reflects a major inflow of new funds,
78% of which originated in the distribution
companies.
Loomis Sayles, in particular, attracted net
inflows of $22 billion, mostly in bonds, and recorded
exceptional performances with Loomis Sayles Bond
Fund and Loomis Sayles Strategic Income Fund.
Harris Alternatives also had a very good year
across its whole range in terms of the inflow
and performance of its funds, in particular with
its Aurora offshore products. Harris Associates
progressed well with the successful launch of
Oakmark Global Select Fund.
The distribution companies IXIS AM Advisors
Group and IXIS AM Global Associates contributed
extensively to these developments, with a net
global inflow of $18 billion.
IXIS AM Advisors Group, which further reinforced
its links with Merrill Lynch and UBS, is now
responsible for more than $64 billion of assets
under management, representing growth of 37%
over 2005 levels.
SAMPLE OF AWARDS IN THE USA
• David Herro was named Manager of the Year
by Morningstar for international equity funds.
Dan Fuss and Kathleen Gaffney were named
runners-up for fixed-income funds.
• The Lipper/Barron’s survey on US mutual funds put
IXIS AM Group in first place for its fund performance
over five years and second for performance over
10 years and one year.
• SmartMoney ranked the Delafield Fund and the Oakmark
International Fund among the top five in 2006.
• The magazine Consumer Reports Money Adviser
selected Delafield as one of the best mid-cap funds
and Oakmark Equity and Income as one of the funds
with the best allocation.
US funds continued to perform well in 2006,
with 94% of funds in international equity and 99%
of funds in bonds ranked in the first quartile.
Excluding money market funds, 85% of the funds
outperformed the average over three and five
years. The Group’s ten biggest funds in the USA
were ranked in the top quartile for one year,
three years or five years.
22
%
growth in funds managed
in the USA
New growth in cross-border activities
IXIS AM Group achieved growth in several
international markets thanks to IXIS Asset
Management Global Associates, which markets the
management companies’ expertise to institutional
clients and brokers outside France and the USA.
2006 was a year of strong growth combined with
organizational changes designed to further improve
customer service.
IXIS AM Global Associates attracted almost
€6.3 billion in cross-border funds, taking total
assets to €21.5 billion.
The company reinforced its global presence
and created two new companies registered in Dubai
and Luxembourg. The sales entities in the UK,
Dubai and Australia recorded a particularly high
level of activity.
The assets under management within the
IXIS International Funds (Lux) umbrella vehicle
grew by 10%, to reach a total of $4.2 billion.
Real estate asset management:
€26.1 billion invested in 2006
The management of real estate assets is
handled by the subsidiaries IXIS AEW Europe
and AEW Capital Management in the US and
Singapore. Together, these companies form
the world’s 7th-largest real estate manager,
with €26.1 billion of assets under management
at the end of 2006.
Present in 10 European countries, including
France and the UK, IXIS AEW Europe boasts
an extensive European platform of operations,
enabling it to take advantage of cyclical
opportunities in increasingly competitive markets.
(1) EuroProperty/INREV ranking – May 2006.
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4
THE SPECIALIZED
SUBSIDIARIES
INVESTMENT BANKING
Since 1999, IXIS AEW Europe has consistently
outperformed the IPD index, the benchmark in this
business sector.
IXIS AEW Europe’s growth is focused around
four major activities: discretionary management,
the structuring of Club Deal operations, the creation
and management of closed-end investment funds,
and advice on investing in open-ended funds
distributed by Europe’s major banking networks.
26
More than
€
bn
of real estate assets under management
IXIS AEW Europe created two new funds in 2006:
Euroffice and PBW II.
A dedicated fund for French institutional investors,
Euroffice specializes in office assets in the eurozone.
€317 million in capital funds has been raised.
PBW II specializes in investment in offices, shops
and logistics facilities in central Europe. It succeeds
PBW I, which has reached its investment ceiling
of €530 million.
For the second year running, IXIS AEW Europe
invested more than €2 billion in Europe. Across the
continent, it manages total assets worth almost
€15 billion.
76
In the USA, AEW Capital Management had
assets of $15 billion under management at the end
of 2006, representing an increase of 28%.
A promising outlook
With its combination of high value-added
products, solid expertise in products for the retail
banking sector and a global distribution platform,
IXIS AM Group is set to take full advantage of growth
and the greater international dimension in asset
management activities.
Its goal within Natixis is to further increase
its resources so that it can offer its customers
the expertise they require – notably in the area
of retirement pensions – maintain a high level
of service quality and aspire to excellence in risk
management, internal control and regulatory
compliance.
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ASSET CUSTODY AND SERVICES – CACEIS
A benchmark European specialist
CACEIS was set up in 2005 following the merger
of the securities activities of Groupe Caisse
d’Epargne and Crédit Agricole SA, and is now
present in France, Luxembourg, Belgium, Ireland,
Switzerland and the Netherlands.
The group has a staff of 2,500, 40% of whom work
outside France. It has three core activities:
• depository/custodian bank;
• fund administration, via the Fastnet network;
• issuer services.
Its global cross-border, multi-business offering
is geared to management companies, institutional
investors, insurance companies, pension funds,
mutual insurance and employee benefit organizations,
banks and large corporations.
CACEIS is France’s leading mutual fund custodian
and administrative and accounting manager,
with market share of 30% and 40% respectively
in the two fields.
In Luxembourg, CACEIS is the third-ranked
administrator in terms of the numbers of funds
under its responsibility. CACEIS is ranked fourth
in Europe and in the top 10 of custody service
providers worldwide. Since November 2006,
Crédit Agricole SA and Natixis have held equal
shares in CACEIS’ equity.
An active and profitable year
One year after its creation, CACEIS has reaped
the rewards of its strategic choices. Its results
and commercial successes bear witness to the
dynamism of its European teams. Its net banking
income was €508 million, outstripping forecasts.
It held custody of assets worth a total of
€1,787 billion, an increase of 15.5%. Assets
under administration stood at €860 billion.
In Spain, CACEIS decided to sell its stake in
IXIS Urquijo to Banco Sabadell, following the latter’s
takeover of Banco Urquijo. In Switzerland,
in December 2006, CACEIS acquired the fund
administration business of FidFund Management SA,
a subsidiary of the Banque Bénédict Hentsch
& Cie SA. As a result of this operation, it can now
offer local services to its Swiss customers.
CACEIS is currently studying potential new
partnership and acquisition projects in several
other countries.
Innovative products
CACEIS has added to its offering and improved
the quality of its services. It has significantly
developed its alternative management services:
these represent 50% of the assets under
administration in Luxembourg, Ireland and
the Netherlands. A structure has been created in
Luxembourg to support its private equity activities.
CACEIS is also developing outsourcing solutions
in support activities for cross-border mutual
fund distribution [European TA] and for the tracking
of OTC derivative, exchange-rate and lending/
borrowing transactions.
All these different examples illustrate CACEIS’
capacity for constant innovation.
CACEIS
Standard & Poor’s rating: AA-/Stable/A-1+
Global Custodian 2006 survey
• Top Rated - Agent Banks survey
– In France and Spain
– Domestic and cross-border
• Top Rated - Hedge Fund survey
2006 survey by Global Investor magazine
(Survey of Surveys)
• Best Sub-Custody Provider-France
In France, its activities were merged in record
time. CACEIS now enjoys a strong base from which to
pursue its growth targets both in France and abroad.
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€103 million devoted
to staff training
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SKILLS &
RESOURCES
79
CHAPTER
5
SKILLS
& RESOURCES
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Human resources, information systems, procurement and general
resources work in unison to ensure that all the business lines have
the staff, skills and tools they need to guarantee the success of
the Group’s strategic plan. This ambitious plan increasingly requires
resources to be pooled in order to reinforce the effectiveness
and competitiveness of the Group’s solutions and to maintain an
impeccable quality of service. The specialists responsible for resources
contribute fully to meeting these challenges.
HUMAN RESOURCES
P
utting management at the heart
of change, offering motivating career
paths that both facilitate recruitment
and enhance the loyalty of existing
staff, providing dynamic training
programs and opportunities for
professional mobility, transforming management/
employee relations: these are the priorities that
guide the human resources policies of Groupe
Caisse d’Epargne. 2006 was marked, in particular,
by record recruitment levels.
Recruitment: a record year
Groupe Caisse d’Epargne remained extremely
active on the job market, hiring more than 4,000 new
staff. In a highly competitive climate, the Group
launched an initial “employer image” campaign
underpinned by the launch of a new, dedicated website
and by the roll-out of a job application and mobility
management IT package called Multitalent.
All new employees (with the exception of senior
executives whose induction is managed by the Caisse
d’Epargne University) follow a single new recruit
program applied across the entire Group.
This program has three strands – sales, support and
management – to match the newcomer’s job profile.
IN THE
“TRAINING
BRANCH”
During their new
recruit program,
sales staff spend
a fortnight at a
branch dedicated
to staff training.
Groupe Caisse d’Epargne has a total of
55,800 employees [average full-time equivalent
in 2006, excluding companies accounted for
by the equity method].
80
A new “mobility space” has been created on
the Group’s intranet, providing staff with all
the relevant information and an alert system when
a job comes up that matches their requirements.
New management tools
The Group is reinforcing its forward management
tools for jobs, skills and careers. It is developing
structured and consistent career paths to enhance
staff loyalty, a process actively sustained on a
day-to-day basis by line managers in their relations
with their teams.
The forward-looking careers and qualifications
observatory published three surveys in 2006 on staff
numbers, the impact of longer working lives,
and careers in sales.
58
%
of staff work in sales
An inventory of jobs and skills is available
to all entities and employees. An individual career
management program is gradually being
implemented across the Group’s different
companies. More than 130 career management
specialists already work within the Group.
CAP 25 MOBILIZES “SENIOR” EMPLOYEES
Cap 25 is the individual career management program
dedicated to staff over the age of 45 who have worked
in the Group for more than 25 years. It includes a career
review and analysis, and a week-long residential seminar
to learn about the opportunities opened up by the wider
scope of the Group’s activities. These are followed by
the drafting of an action plan and career development
plan. More than 540 staff have followed this program in
the past two years.
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The Services module is currently in the design
stage. It will provide a single solution for managing
payroll, working hours and professional training.
With Office RH, employees will have access to new
functionalities, and the human resources teams
will have indicators they can use to track their
activities in all spheres.
New training programs
Against the background of a new legal framework,
2006 was marked by significant additions to the
number of available training programs, to which the
Group devotes more than 5% of its aggregate payroll.
AGREEMENT ON THE RECRUITMENT
OF THE DISABLED
A national agreement covering the period 2006-2008
provides for the recruitment of an additional
170 people with disabilities, their long-term
employment within the Group with appropriate career
opportunities, together with an increased use
of the protected sector in outsourcing operations.
An annual sum of €3.5 million has been allocated
to this program, coordinated by the Handicap and
Diversity Unit deployed at Group level, and represented
by disability correspondents in each company.
The human resources approach to the Group’s
senior management has been reinforced to bring
on the new generation destined to lead the Group
in the next 10 to 15 years.
Two key processes have been set up:
• the senior management succession plan system,
designed to prepare for the extensive changes over
the period 2006-2008;
• the Directors’ career path, created in consultation
with the Caisse d’Epargne University to promote
dynamic career management for senior executives
and high-potential employees likely to move up to
higher positions.
As regards day-to-day management, Office RH,
the program dedicated to the human resources
information system, is currently being deployed.
Following Multitalent, the second module – Pilote –,
a tool for managing the variable component
of salaries, competencies and the development
of human resources, will gradually be rolled
out over 2007.
Employees will be able to go online to check the
information held about them.
The national programs – the New Recruit Program,
Professional Platform and Management Program – have
all been newly created or redesigned, and the latter
now confers a qualification recognized by the ESSEC
school of business administration. Managers in
the networks and support functions now enjoy access
to specific training programs. The range of online
training programs has been substantially extended,
and the pooling of resources has improved the funding
process for the different programs.
eLICE: ONLINE MANAGEMENT TRAINING
Facilitating your management tasks, improving your
managerial posture, assessing your environment:
eLice provides some 20 distance learning modules
on these three topics. It has been adopted by 37
of the Group’s companies.
More than 9,000 sales personnel in the retail
banking arm received training to support the
Fréquence Client distribution program. A seminar
devoted to advanced negotiation skills has been made
available to the companies. The Compétences
Business Client (business customer skills) e-learning
solution has been enhanced and upgraded,
and 3,000 courses have been organized.
Specific training schemes have been developed
for the different business lines. As part of this
process, a new DESS one-year post-graduate
diploma in wealth management has been set up
with Paris-Dauphine University.
The training programs in the risk management
function have been substantially extended. 350 experts
in this field have received specialist training and
further additions will be made to the program in
2007, in particular in the area of operational risk,
with the introduction of a specific qualification.
1,600 employees affected by changes in the
business lines and in the organization of banking
production have received training to enhance their
professional skills and develop their versatility.
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4,000 new
employees in a year:
is that really
enough?
job applications on the dedicated website in the space
of
months
Welcome to the youngest of the major universal banks! Once again
in 2006, Groupe Caisse d’Epargne was one of France’s biggest
recruiters, in pursuit of a single objective – to attract and to keep
the very best –, an essential prerequisite for the achievement
of the Group’s ambitious goals. In a highly competitive climate,
the Group’s first employer campaign was right on target. Focusing
on the variety and diversity of the talents required, it effectively
reflected the Group’s identity in a playful and attractive way.
The outcome: 70,000 high-quality applications on the new jobs
website were received in the space of 8 months.
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350
experts
trained in Risk management
Induction and assumption of duties, vocational
training, reinforcement of managerial skills, career
development and prospects: training programs have
been introduced to prepare managers for the different
stages in management careers. They are aimed at
sales executives, branch directors and group directors,
as well as managers in the support functions.
The ESSEC Program, created in partnership
with the ESSEC Business School and addressed
to existing or potential department heads, marked its
10th anniversary by conferring an official qualification.
Since 1996, more than 250 managers from all the
Group’s companies have followed this high-level
business management program with its very
international ethos.
SCHOLARSHIPS
FOR HEC
STUDENTS
In 2005 and 2006,
some one hundred
HEC business
school students
received grants
from Groupe
Caisse d’Epargne,
allocated on
the basis of social
and/or excellence
criteria.
New tools for managing change
In terms of internal communication, further
measures were taken to help employees adapt
to the large-scale changes facing the Group.
In order to enhance understanding of the internal
issues, diagnostic research was carried out on
the basis of quantitative and qualitative surveys in
all the Group’s different companies.
The Group uses a wide range of different media
to communicate with its employees. The in-house
journal Culture Groupe boasts a circulation of
60,000 and is distributed to all members of staff.
The electronic newsletter Culture Manager is sent
to more than 5,000 executives, and the intranet
portal provides a channel of information
and communication for all Group companies.
A program to reinforce the Group’s multimedia
capacities was launched, and a new version of
the intranet site is currently in development.
As part of this process, an in-house TV channel is
currently in the process of deployment.
INTERNATIONAL BUSINESS, FOCUS OF THE 10TH
ANNIVERSARY OF THE ESSEC PROGRAM
The first stage in this anniversary program brought
together all participants – students, tutors, human
resources directors – at the Maison de la Chine
for a conference with André Chieng, a graduate
from the prestigious Ecole Polytechnique and specialist
in business relations with China. The topic: cultural
differences in spheres such as work, action and
effectiveness.
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5
SKILLS
& RESOURCES
SYSTEMS AND RESOURCES
R
einforcement of IT resources and their
adaptation to commercial priorities,
increased automation of bank
production and centralization
of certain activities, centralization
of procurement, general resources
and premises for greater efficiency: the Group
is optimizing its resources to enhance its efficiency
and productivity.
Information technology:
creating a common architecture
Following the shift from seven to three IT
communities between 1999 and 2003, the Group
is now launching a major IT platform convergence
project to create a single companywide information
system. This strategic project is essential
to increasing operational competitiveness and
represents a new step towards operational
excellence. The first stage has been planned with
the introduction of an overarching management
structure in 2007. The single system should be
created and in place by 2010. Ultimately,
the shift to a single system should generate savings
of some €115 million per year, the equivalent
of a two-point reduction in the cost/income ratio
of the Caisses d’Epargne.
The Group’s first annual IT plan
For the first time, the Group has adopted
an annual IT plan. Almost 100 people, representing
the business lines, were involved in its development.
160
projects
representing 75,000 man-days
84
The IT plan will harmonize the projects
developed across the three communities and
will make it easier for new customer products
and services to be launched simultaneously.
160 projects, representing a total of 75,000 mandays, have been selected.
Almost 50% of the IT plan is allocated to sales
development in order to underpin the Group’s
strategic plan. The major component is the
upgrading of branch workstations. The goal is to
provide sales staff with a simple, comprehensive
and user-friendly screen. This will provide a
real-time display of all the available information
about the customer and a full catalogue of products
and services, combined with information about
the rules governing each product. Other priority
goals are the development of customer portfolio
and customer relations management tools, and
remote banking systems with enhanced security
of access. In the area of IT security, a system
of checks on unusual online and branch terminal
transactions was rolled out during 2006.
The other components of the plan mainly relate
to regulatory projects, particularly in connection
with risk management. The technical support tasks
relating to the Fermat GEM (Basel II credit risks)
project was a major focus of the development
teams’ work. A dedicated architecture for sensitive
contracts was successfully implemented in the first
half of the year.
Optimization of production performance
Banking production at the CNCE was reorganized
with the separation of middle and back office tasks
in the Branch Network Department, and the creation
of cross-functional divisions, and an internal control
and compliance function. Another feature of the
year was the increased focus on responsiveness
and quality in the handling of transactions –
complex transactions, in particular – and the
introduction of new, more efficient tools
to streamline part of the installed software base.
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In 2006, the CNCE processed more than 583 million
checks and more than 2.5 billion interbank
transactions.
Domestic flows increased with the deployment
of the Carte Achat Public, a public sector payment
card, the launch of the multi-purpose employment
service check (CESU) and the development of the
Ligne de Trésorerie Interactive (interactive cash
facility) for local authorities. This last facility,
distributed by 26 Caisses d’Epargne, grew from
900 to 1,600 credit lines over the year.
New projects were also introduced in 2006. An
acquirer bank function was set up for several mobile
phone operators; a national partnership agreement
was signed with the PMU bookmaker chain to
facilitate bet management; and clearing bank services
were developed for banks operating in the French
financial market.
2.5
bn
operations handled
The production mills continued to step up
the services they provide to the Group’s different
companies, supporting growth or the launch of new
products: IZICEFi personal loans, Bourse “Esprit
Ecureuil”, a new range of accident insurance vehicles
Garantie Urgence and Garantie Famille, personal
care services, and complementary health products.
Another new facility was the Trade program, which
offers customer firms a full array of documentary
credit, foreign exchange and currency account
products within the framework of a partnership set up
with ABN AMRO.
Cash management is now fully centralized for
the whole Group.
Rationalization of the Group’s
flow management platforms
The SWIFT platforms have been merged:
the CNCE now enjoys a single system of
communication with the other banks in the French
financial market.
9001
ISO
A major project in 2006 was the implementation
of the new euro unit flow system (PFU) and its
peripheral intraday cash position tracking and bank
reconciliation tools. The CNCE now boasts the most
efficient technical architecture in the market.
Finally, significant projects relating to marketplace
deadlines remain on track: replacement of the SIT
interbank clearing system dedicated to bank
payment transactions by CORE; convergence
of standards related to payment instruments for
small amounts in the Single Euro Payments Area;
and the TARGET system for single large-value
transfers within the euro area.
In rapidly changing banking conditions, and in
an ever more demanding regulatory environment,
the renewal of ISO 9001 quality certification on
bank transfers for large-value euro and currency
amounts reflects the commitment of the CNCE’s
teams to serving the Group’s companies and
their customers.
Automation of procurement
and general resources
The consolidated figure for purchases in 2006
was in excess of €2.5 billion. The Group had
set itself a total savings target of €300 million for
the period 2004-2007. Savings in 2006 were close
to €75 million, of which €19 million were shaved
from recurring costs and €56 million from
investment projects. The Group decided to set up
a Procurement Economic Interest Grouping in 2007
for its companies and subsidiaries.
Procurement:
savings of
€75 million
in 2006
The implementation of the operational
procurement plans continued in 2006 with
the involvement of more than 30 Group companies.
These plans were accompanied by vocational
training courses for 164 professional buyers in
the course of the year.
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5
SKILLS
& RESOURCES
Projet SGM, a new resource management
software tool, will be rolled out in 2007 while the
Ivalua Buyer solution has been adopted to update
the Procurement information system.
The continued development of the system set up
to create Groupe Caisse d’Epargne’s bank branches
was confirmed. The process whereby the work was
contracted out was based on software applications
that made it possible to track the completion of
more than 544 branches in 2006 within contractual
budget limits.
FRÉQUENCE FOURNISSEURS,
DETERMINED
TO CREATE VALUE
For the first time, the Group
invited its suppliers
to a meeting attended
by 307 people to mark
the launch of the Fréquence
Fournisseurs program.
The aim: to harmonize
and optimize relations with
suppliers, enhance
performance and create value.
31 progress plans are
already in place.
Focus on quality: a national program
The quality program, which is deployed in all
the commercial banking companies, is geared
to generating enhanced customer satisfaction and
loyalty. The main objective is that by the end of 2007
all these companies should have a comprehensive
system for monitoring the quality of service
they give their customers, whether from within or
outside the Group.
A Quality Charter defines the joint commitments
made by the financial institutions, together with
the contribution expected from the specialized
subsidiaries and IT communities. Each business
translates this charter into operational action plans
that reflect its individual priorities.
86
In order to help the different structures build
a quality management system, a Caisses d’Epargne
Excellence Model was created for the financial
institutions in 2005. In 2006, a version of this model
– incorporating the main requirements of ISO 9001 –
was designed for the business production mills
and IT communities.
In 2006, all the companies carried out
a self-assessment on the basis of this model.
These self-assessments are used to measure the
maturity of existing quality management systems,
to put together appropriate action plans and
to identify best practices for implementation across
the whole Group.
As regards customers, the national customer
satisfaction barometer surveys 35,000 customers
every year: a total of 89% are satisfied, and 34%
of this number very satisfied (TNS Sofres, second
half of 2006). The system for handling complaints
is a major improvement priority. To achieve this,
a new complaint input and management tool
is in the pipeline, designed in particular to cut
response times.
An in-depth study was conducted in 2006 on
the quality of customer reception. It resulted
in the introduction of Ecureuil Attitude, a set
of very specific reception criteria combined with
a measurement system. Ecureuil Attitude will
be implemented by the Caisses d’Epargne
throughout 2007.
For the business line subsidiaries, a business
satisfaction barometer was created in 2006
and implemented at the beginning of 2007. Under
this system, 5,000 Caisses d’Epargne employees
are questioned every year about their level
of satisfaction with the services provided by the
Group’s subsidiaries and business production mills.
This barometer will help them to target their quality
action plans more effectively.
For the information systems, an Operational
Excellence division has been set up at Group level
with monitoring committees and a dedicated cell
tracking data quality and reliability.
Each year, the IT satisfaction barometer surveys
a cross-section of 4,000 users: the average
satisfaction score was 6.7/10 in the fourth quarter
of 2006.
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Can a banker
learn from
a hotelier?
r
omeion
t
s
u
c fact
s
sati
Offering the best possible welcome and developing good relations are key
prerequisites for customer loyalty. To maximize its effectiveness in this area,
and as part of its Fréquence Client program, Caisse d'Epargne successfully
turned to the Académie Accor Services, a top specialist in customer relations.
More broadly in 2006, the Group set up Ecureuil Attitude, a set of highly
specific criteria for good customer reception practices, combined with
a measuring system. The objective: to improve the results of the national
satisfaction barometer which surveys 35,000 customers every year.
In the second half of 2006, 89% of customers were satisfied, and 34%
of these very satisfied (source: TNS Sofres).
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With a view
to implementing
the Basel II framework,
internal rating methods
have been introduced
for all the major
asset classes
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RISK MANAGEMENT,
COMPLIANCE &
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6
RISK
MANAGEMENT,
COMPLIANCE &
SECURITY
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Risk management and supervision are two fundamental priorities
in Groupe Caisse d’Epargne’s strategic plan. The process of adapting
to regulatory changes has intensified.
All aspects of internal control – risks, compliance, auditing – have
been reinforced. Supervision systems have been optimized throughout
the Group and its business lines. These changes include compliance
with the new prudential standards laid down by the Basel II framework
and Regulation 97-02 of the Banking and Financial Regulations
Committee (CRBF) relating to internal control in credit institutions.
RISKS AND INTERNAL CONTROL
T
he focus in 2006 across the entire
Risk Management function was on the
reinforcement of human resources and
information systems. The main project
emphasis was on the continuing
modernization of risk monitoring and
control systems at Group level and in the individual
entities, the preparation for Basel II prudential
standards, and the adaptation of structures and
methods following the creation of Natixis and the joint
shareholding position with Banque Populaire group.
Group Risk Management (GRM):
staff numbers up by 34%
Group Risk Management (GRM) continued to
increase its workforce, up from 73 at the end of 2005
to nearly 100 at the end of 2006. The dynamic was
the same across the whole Risk Management
function, comprising the GRM and the Risk Units
set up in every Caisse d’Epargne and subsidiary.
At the end of 2006, total headcount in Risk
Management stood at 745, excluding Natixis.
Within the CNCE, GRM is responsible for
maintaining the consistency of the Group’s Risk
Management processes by:
• setting exposure limits for each Group entity
and for all significant counterparties representing
exposures in excess of the entity-level limit.
These limits are determined and officially
documented in a number of decision-making
committees;
• monitoring entities’ compliance with these limits
and tracking any overruns;
• approving the methods used to rate and calculate
risks throughout the Group;
• defining the risk control, processing and monitoring
standards to be applied by all entities, and the
permanent oversight of their implementation by the
companies;
• supervising major national projects, such as
Basel II, and implementing national tools
for quantifying, analyzing and controlling risks.
90
Credit risks
Global exposure limits have been set at group
level for each major counterparty which is a
customer of several Group entities. Maximum
exposure limits per country and per economic
sector have also been established at consolidated
level. The financial operations of the Caisses
d’Epargne are contained within a detailed
framework of limits, which notably take account
of asset types, ratings and economic sectors.
A dedicated system has been developed to
manage the risks associated with SMEs.
It takes account of each Caisse d’Epargne’s
degree of development on this customer segment.
In the context of forthcoming Basel II
compliance, internal rating methods are now
in place for all the major asset classes present
within Groupe Caisse d’Epargne.
All customers or counterparties for these asset
classes are automatically re-rated using either
expert or statistical methods, as required.
These rating methods have been reviewed and
approved by the CNCE’s Internal Audit Department.
The GRM ensures that rating systems are in place
and are applied in accordance with exposure limits
assigned to the entity and credit decisions.
In the last quarter of 2006, the Banking
Commission conducted a Basel II compliance
check on Investment Banking asset classes
assessed by the “internal ratings – foundation”
method. The results of this inspection are
expected in 2007. Another compliance inspection,
on the asset classes involved in Retail Banking
(individual and business customers) is scheduled
for the first four months of 2007.
In addition, the GRM pursued its program to
modernize the instruments employed in the control
and consolidation of credit risks.
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Following the creation of Natixis, the GRM has
worked to harmonize internal rating and credit
risk quantification methods within the new structure.
The internal rating methods to be used on the asset
classes common to Natixis and the two shareholder
networks were determined in October 2006. A detailed
convergence plan for credit risk systems, procedures
and quantification was close to finalization at the end
of the year. It will be executed in 2007 and 2008.
Market risks
The GRM continued to set up a centralized system
for monitoring market risks within the Group’s
different entities. This monitoring system takes
account of the segmentation of financial operations
between proprietary trading on the one hand, and
asset-liability management (ALM) and the
management of medium and long-term positions
on the other. These principles are formally stated
in the Financial Charter.
The day-to-day tracking of proprietary trading
operations is based in particular on the monitoring
of compliance with the following regulatory limits:
• consolidated 1-day Value-at-Risk (VaR) based
on a 99% confidence level up to a maximum €7 million
for the Caisses d’Epargne and €0.5 million for
the Group’s specialized subsidiaries;
• 1-day VaR based on a 99% confidence level up to an
absolute limit of €25 million and an average annual
limit of €20 million over one year for IXIS CIB.
Scénarisk, IXIS CIB’s VaR calculation system,
has been extended to all the Group’s market
operations. This means that the Group now has a
day-to-day market risk measurement, monitoring
and control tool for each of its companies and
for the whole Group, which takes account
of correlations between the different portfolios.
To complete its risk monitoring system, the GRM
has drawn up stress scenarios in consultation with
the Group’s economists and the Risks and ALM
departments of its different companies: IXIS CIB,
IXIS AM, Retail Banking. Immediate variations
in the market value of the portfolios can be
instantaneously measured against a dozen scenarios.
These scenarios, which are the same for
proprietary trading and dealing operations,
are divided into themes (falling stock markets,
bond market crisis, credit spread crisis, hedge fund
crisis, etc.) and calibrated by IXIS CIB’s economists.
At the same time, the catastrophe scenario is
maintained on Retail Banking’s ALM positions,
as are the specific Investment Banking scenarios.
Investing in funds:
a new monitoring and control tool
Groupe Caisse d’Epargne’s investments in funds
grew by €8.1 billion in 2006, reaching €12.2 billion
at the end of December. Since ABIS – a system for
tracking, monitoring and managing fund investment
requests – came on line at the beginning of 2006, the
GRM’s teams have been able to handle 911 investment
reports and requests, as compared with 388 in 2005.
This system is used by all financial and risk divisions
in Groupe Caisse d’Epargne companies whose
financial operations include fund investments. It is
also available for consultation by the Group’s audit
departments in the performance of their functions.
The 530 funds in which Groupe Caisse d’Epargne
held assets at the end of December 2006 were
analyzed and rated by the GRM teams in 2006.
And finally, as part of its role in managing the licenses
granted by the CNCE to some 50 management
companies outside the Group, the GRM made on-site
visits to nine management companies to obtain
additional information on their risk control processes
in the run-up to their annual license reviews.
Operational risks
The operational risk monitoring system
continued to be deployed in 2006. The companies’
operational risk committees receive quarterly
reports which both they and management use as a
basis for their decisions, taking account of the main
potential risks, of actual incidents over a given
period and of the environment in which
the business operates.
A half-yearly assessment of the system is
conducted for each company. This enables
companies to assess progress from one period to
the next, and to compare themselves with the
Group’s other entities.
Under this system, capital funds are calculated
by a Bayesian quantification framework which
uses historical data and predictive analyses.
This calculation system will be adjusted in 2007.
The predictive analysis based on the mapping of
44 risk scenarios, due to be updated in early 2007,
now also includes an analysis of some 20 major
risk scenarios.
Preparations for AMA compliance should be
finalized in 2007, with the Group’s Internal Auditors
set to review the Operational Risks system
in the second quarter of the year. The compliance
inspection by the French Banking Commission is
scheduled for the first half of 2008.
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6
RISK
MANAGEMENT,
COMPLIANCE &
SECURITY
COMPLIANCE AND SECURITY
A
Group Compliance and Security
Unit was set up in 2006. It replaces
the Ongoing Controls organization,
whose structures have been
reorganized into departments
allocated to the different business
lines and cross-functional projects. The Group
Security Unit is included in this new structure.
Business continuity plans
adopted for each Caisse d’Epargne
Business continuity plans have been drawn up
for each Caisse d’Epargne.
Critical processes have been identified and
analyzed in the light of three scenarios: inability
to access the premises; inability to access
the information system; absence of more than 40%
of employees, e.g. following an epidemic.
Measures have been determined for each scenario.
The business continuity plans are underpinned
by a dedicated structure, specific management
software and an emergency email solution.
A Business Continuity Officer has been appointed in
each Caisse d’Epargne, and all the Group’s entities
are covered by an overarching structure under the
aegis of the Group Security Department in the
CNCE. Following a joint consultation process, a
single business continuity plan has been
established, which each Caisse d’Epargne then
adapts to suit its own specific structure and needs.
49
processes
of critical importance
identified and analyzed
92
The implementation and effectiveness of these
plans have been successfully tested through dry
run exercises. Procedures have been set up
to ensure that the plans are constantly updated.
Information system security has been enhanced
by the introduction of new antifraud procedures.
Technological intelligence on system and network
vulnerability has been extended and accentuated.
A new risk analysis consolidation tool is now in
operation. Special training courses have been run
throughout the Group to raise employee awareness
about software security.
The security rules have been widely
implemented across the branch network, together
with coordination procedures to combat fraud.
Standards genuinely integrated
into operating methods
The role of the Compliance function is to
ensure that regulations and ethical practices are
fully applied in all operations.
In 2006, this function was reorganized into
departments, with the exception of anti-moneylaundering processes, which are applied across
all functions.
The following additions were made in 2006
to the standards pertaining to the Group’s
organization and goals:
• a Compliance charter;
• a reporting standard on compliance incidents,
applicable as of 2007;
• a Compliance Management Review charter,
applied since the autumn of 2006;
• recommendations to ensure that customers are
well informed of their rights, their responsibilities
and, more generally, of the legal and regulatory
framework governing their decisions;
• recommendations regarding outsourced
operations.
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A new set of standards on products, services
and cross-functional rules is available on the Group
intranet. Compliance standards have been
incorporated into the companies’ procedures
and operational systems. The conditions and
authorization procedures for accessing reference
systems on the intranet have been improved.
The SIDECO ethics
and compliance
information system
has been enhanced
The Compliance function, whose systems
received a positive assessment from the French
Banking Commission, has been reorganized
within the companies where the CNCE’s
recommendations were not being respected.
Its management has been reinforced through
Compliance Management Reviews.
The conditions governing the role of Head
of Investment Services Compliance were the focus
of particular attention.
The Group has adopted and implemented a
warning system to guarantee that the regulations
on market abuses are fully applied: prevention,
detection, notification, compliance with
professional obligations.
The monitoring of decision-making processes
stipulated in article 5 of CRBF regulation 97-02 has
been reinforced. The approval procedure for
commercial products has also been reinforced,
and is backed up locally by procedures for bringing
approved products to the market. This monitoring
of commercial processes will be extended in 2007,
upstream at the product design stage, and
downstream right through to advertising.
All this means that the CNCE has a Compliance
function that covers banking operations
and investment services, fraud prevention and
detection, and customer referencing, with
particular emphasis on the ethical basis of
the business relationship and the provision
of information to vulnerable customers.
Fight against money laundering
and the financing of terrorism
On the basis of its obligations regarding the fight
against money laundering and the financing
of terrorism, Groupe Caisse d’Epargne has steadily
developed a culture, and therefore tools, for
the prevention of money laundering and of the
financing of terrorist activities. Through different
channels, all employees (both in sales and
after-sales), all managers and senior executives
have, over the years, systematically adopted
the constantly changing detection methods
and management systems, which demonstrate
that the Group remains committed to its obligations
in this area.
Its real contribution to a system that demands
civic commitment from all stakeholders is
illustrated in particular by the steady rise
– initially in quantity, and subsequently in quality –
in suspicious activity reports submitted by
the Group’s companies to TRACFIN, the French
Finance Ministry’s anti-money laundering unit.
Thus in 2006, despite an almost 16% reduction in
reports, it would appear that those reports were
more frequently effective in contributing
to measures for combating money laundering
and the financing of terrorist activities.
In addition, the combination of widespread
education and ever greater expertise has led
to the establishment of a truly professional
surveillance function. The departments dedicated
to the prevention of money laundering and
the financing of terrorist activities constitute
a sub-structure of almost 200 people, most
of them full-time, who operate in all the Group’s
entities and activities.
The main functions of these departments are:
to train all the teams concerned but also to keep
all staff informed about the latest developments
– changes in regulations, detection of new
profiles, etc. –; to maintain permanent secondary
level surveillance, in synergy with the formal
management systems, to assess the degree and
effectiveness of the vigilance exercised by all parties;
to follow up and process reports (submission to
TRACFIN, transaction monitoring, etc.).
Groupe Caisse d’Epargne has put in place
the human and practical resources, but also
the structures and procedures, that it needs
to fulfill its obligations, in particular through
real-time transaction filtering.
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Over the past six years, the Caisses d’Epargne have funded
10,000 local solidarity projects, for a total of €240 million
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SOLIDARITY AND SOCIAL
COMMITMENT
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7
SOLIDARITY
& SOCIAL
COMMITMENT
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The founders of the French savings banks, Francois de La RochefoucauldLiancourt and Benjamin Delessert, were driven by the desire to be
“friends of humanity”: social progress is what motivated the creation of
Caisse d’Epargne, and the Group remains loyal to that original aspiration.
On the ground, its actions demonstrate the social utility and civil responsibility
of the Group. It is a bank, but also a social housing operator, a driving force
in local development, a promoter of sustainable development, an adversary
of all forms of social exclusion whether through old age, disability or illiteracy.
The Caisses d’Epargne are living testimony to the fact that economic
profitability can coexist with a concern for the general public-interest and,
indeed, it is this very profitability that finances social action and makes
it possible to promote a more mutually supportive and engaged society.
ÉCUREUIL & SOLIDARITÉ LOCAL AND SOCIAL ECONOMY PROJECTS
More than 2,700 projects
worth €53.9 million supported in 2006
Local and social economy projects:
selection, monitoring and assessment
Caisse d’Epargne is the only bank to put a
percentage of all its profits back into local solidarity
projects. The Caisses d’Epargne are committed
under French law to general public-interest
initiatives and, more specifically, to the provision
of financial support for local and social economy
projects, the so-called écureuil & solidarité PELS.
These projects are typically run by not-for-profit
associations to help people in vulnerable
circumstances. Finding jobs for people on the
fringes of the employment market, helping socially,
physically or psychologically vulnerable people
achieve autonomy, and re-establishing social
connections, are the three main areas where the
PELS focus their action.
Each Caisse d’Epargne sets its priorities for action
on the basis of the needs of its region and the goals
established by the Fédération Nationale des Caisses
d’Epargne. The directors of the local savings
companies are encouraged to submit projects,
to express their opinions and to get involved in their
implementation. Their knowledge of the local
economic and social fabric is invaluable to
the success of these initiatives.
The annual funding envelope dedicated to the
écureuil & solidarité PELS is approved every year at
the annual general meeting of each Caisse d’Epargne.
It is calculated on the basis of the interest paid
to holders of shares in each Caisse d’Epargne.
In 2006, this envelope was almost €54 million and
was used to finance more than 2,700 projects.
PELS OBJECTIVES
• To help create a more mutually supportive and more
entrepreneurial society.
• To promote business start-ups and new job creation.
• To provide easier access to banking services and
help people understand how money works.
• To combat dependency and isolation arising from
old age, disability, illness or illiteracy.
• To incorporate principles of sustainable development
into the Caisses d’Epargne’s business operations.
96
DEVELOPMENT OF THE ÉCUREUIL & SOLIDARITÉ PELS
2001
2002
2003
2004
2005
2006
Total
Number
952
1,316
1,977
2,350
2,556
2, 718
11,869
Amount in €m
20.3
23.0
41.3
50.6
51.5
53.9
240.6
Each Caisse d’Epargne has an officer specially
trained in public-interest activities to manage
the local and social economy projects. The Group
intranet provides a discussion space and a
framework for analyzing, qualifying, managing
and reporting projects.
Once a project is complete, Caisse d’Epargne
assesses whether it has been implemented
effectively and weighs up its impact on its
beneficiaries. This evaluation process also enables
Caisse d’Epargne to strengthen its ties with
the bodies it supports and to gain a better
understanding of the needs of the most vulnerable
populations. More than 900 administrators have
received training in the evaluation process.
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Supporting new job creation
or the return to active employment
Breakdown of PELS funding
in 2006
Caisse d’Epargne can offer loans and specific
banking services to people on the fringes
of the job market or who do not have access
to standard funding mechanisms to help them to
create or buy a business. These small businesses
need support from a professional network.
as a % of the total amount
To provide this, national agreements have been
established with five major support networks:
Adie, Boutiques de Gestion, Entreprendre, France
Initiative and France Active. Their services can be
adapted to local needs. Within this framework,
Caisse d’Epargne can provide interest-free loans
and mutual guarantee funds, contribute
to equipment grants or offer appraisal services.
To boost the chances of unemployed people
getting into the employment market, Caisse
d’Epargne supports integration projects run by
associations or companies to help people obtain
qualifications and acquire the new skills they need
to prosper in a professional context.
Combating banking exclusion
Access to banking services is nowadays
essential to everyday life. Aware of the role that
they can play in fostering and maintaining
a banking relationship, the Caisses d’Epargne
extended their involvement in this area in 2006
with the launch of the Parcours Confiance program.
This program places Caisse d’Epargne at the centre
both of its banking role and of its commitment to
social cohesion.
Areas of involvement
by the PELS in 2006
as a % of the total amount
Apart from high-quality banking services,
Parcours Confiance also offers micro-loans for
individuals in severe financial and social difficulties
and for entrepreneurs who are unable to obtain
financing solutions through traditional banking
channels. The aim is to help them re-establish
stability and equilibrium both through banking
facilities and through educational and social
support.
Parcours Confiance is a comprehensive and
personalized support package. It includes
diagnosis, a targeted range of banking services,
group courses in financial management provided
by the Finances & Pédagogie association, and
support from social agencies.
THE FINANCE & PÉDAGOGIE ASSOCIATION
Specializing in providing education and training
for the young, vulnerable or highly indebted
individuals, the Finances & Pédagogie association was
created 50 years ago by the Caisses d’Epargne. Thirty
regional correspondents organize training and
information programs devoted to handling money,
managing finances, loans, and banking relations,
all combined within an entertaining and accessible
learning package. These courses are in great demand
with social workers attached to associations
and local authorities, to help them with their social
and professional integration programs.
In 2006, Finances & Pédagogie signed almost
250 partnership agreements and conducted
3,875 training courses, reaching almost 72,000 people,
including approximately 24,000 young people.
In particular, the association signed a partnership
agreement with the Secours Catholique charitable
organization to provide educational support for
the volunteers and staff in its working groups, to help
them in their work providing financial and social
support for people in difficulty. This training program
is part of the Social Cohesion Fund.
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7
SOLIDARITY
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COMMITMENT
Promoting autonomy
In order to provide these services, each Caisse
d’Epargne has set up an association responsible
for the Parcours Confiance program, or works with
an existing association. One or more branch
employees are seconded to the Parcours Confiance
association and are responsible for helping
their clients until their personal situations have
stabilized. The Finances & Pédagogie association,
created and supported by the Caisses d’Epargne,
organizes the Group training sessions.
Partnerships can be established with other local
associations, which provide their own specific
expertise.
There is a wide variety of support for initiatives
designed to help elderly, sick or disabled people
to live independently. Caisse d’Epargne finances
equipment that can help people to achieve greater
mobility in day-to-day or recreational activities, to
continue living at home and to avoid social isolation.
It also supports associations working to help
people in situations of extreme deprivation, and
funds the investment required for such activities:
vehicles, work tools, premises and equipment
for accommodation or food storage, training of
volunteers, information channels.
This innovative program is financed out of
the PELS funding envelope with a guarantee from
the Social Cohesion Fund in partnership with
the Caisse des Dépôts. At the end of 2006,
eight Caisses d’Epargne(1) had begun the program,
while three others had developed local
partnerships based on the same principle.
Parcours Confiance will continue to be
implemented, and will apply across the whole
network by the end of 2007.
PELS UNDERTAKEN IN 2006
BY AREA OF OPERATION
FIRST “ÉCUREUIL & SOLIDARITÉ
COUPS DE CŒUR” AWARDS
Amounts in millions of euros
Employment
Funding and access to banking
services for the entrepreneur
Backing for support professionals
Integration through work
21.7
Autonomy
Autonomy for elderly,
sick or disabled people
Training in basic skills,
including money management
Fulfilment of fundamental needs:
food, accommodation, etc.
24.1
Social integration
Environmental protection
to foster social cohesion
Access to banking services
and banking support for individuals
Integration through culture and sport
Total
6.2
8.3
7.2
In the last six years, the Caisses d’Epargne have
funded 10,000 PELS, for an aggregate total of
€240 million. To celebrate the event and pay homage
to the associations supported, six “écureuil &
solidarité Coups de Cœur” (panel’s special choice)
prizes were awarded to associations for their
exemplary role in promoting employment, autonomy,
social integration and education.
14.8
5.2
4.1
8.1
1.8
2
4.3
53.9
(1) Caisses d’Epargne de Poitou-Charentes, Ile-de-France Ouest,
Champagne-Ardenne, Pays du Hainaut, Midi-Pyrénées,
Provence-Alpes-Corse, Bretagne and Picardie.
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Can a major
banking corporation
take an interest
in a micro-business?
an
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created
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o
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new e 2001
sinc
Many unemployed people and people on minimum wages would like
to set up their own businesses, but they don’t know how to go about
it and are afraid of failing without a helping hand. For them, Caisse
d’Epargne has created Parcours Confiance Professionnels. This program,
which is currently being rolled out across France, works in partnership
with support networks and local initiative platforms Adie, Boutiques
de Gestion and France Active. Convinced that employment is a major
factor in integration, the Caisses d’Epargne have contributed, since 2001,
to the creation of more than 6,000 jobs by funding écureuil & solidarité
local social and economy projects.
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7
SOLIDARITY
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COMMITMENT
Caisse d’Epargne also supports programs
to help adults to master basic skills. Learning
to read, write, and to count, attending computer
workshops or learning how to manage their
finances: the initiatives financed by the French
savings banks are very concrete and designed
to prepare people for the modern workplace.
Integration through culture,
sport, and the environment
As a local bank, Caisse d’Epargne supports
initiatives to re-establish links with society, such
as neighborhood events, organization of sporting
events or shows.
Local heritage protection projects can also
receive PELS funding, as can associations
involved in environmental protection provided
that the project contributes to social cohesion.
For example, Caisse d’Epargne supports riverbank
regeneration projects or operations to rehabilitate
damaged natural sites, when the work is done by
people signed up for social integration programs or
with the aim of facilitating access to the disabled.
100
PELS UNDERTAKEN IN 2006
BY CAISSE D’EPARGNE
Amount in thousands of euros
Alpes
Alsace
Aquitaine-Nord
Auvergne et Limousin
Basse-Normandie
Bourgogne Franche-Comté
Bretagne
Centre-Val de Loire
Champagne-Ardenne
Côte d’Azur
Flandre
Haute-Normandie
Ile-de-France Nord
Ile-de-France Ouest
Ile-de-France Paris
Languedoc-Roussillon
Loire Drôme Ardèche
Lorraine
Martinique
Midi-Pyrénées
Pas-de-Calais
Pays de l’Adour
Pays de la Loire
Pays du Hainaut
Picardie
Poitou-Charentes
Provence-Alpes-Corse
Rhône-Alpes Lyon
Val de France-Orléanais
Total
1,486
1,400
1,552
1,940
925
3,233
1,791
1,000
1,168
1,735
1,517
1,526
1,104
1,119
5,475
2,127
1,854
2,368
193
2,468
2,030
1,005
1,835
1,000
1,470
1,685
4,436
2,902
1,558
53,902
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THE CAISSES D’EPARGNE FOUNDATION FOR SOCIAL SOLIDARITY
T
he Caisses d’Epargne Foundation for
Social Solidarity, an institution created
in 2001 and granted official recognition
as a public-interest entity, carries the
fight against all forms of dependence
and social exclusion resulting from old
age, illness, disability or illiteracy. Through the
development of its actions, the commitment of its
personnel backed up by a host of volunteers, the
Foundation embodies the determination of Groupe
Caisse d’Epargne to be in the vanguard of the
struggle for greater social solidarity by forging a
network of interpersonal support at a local level.
An annual budget
of €143.3m
The Caisses d’Epargne Foundation for Social
Solidarity operates in three ways:
• as an operator in the non-profit-making sector, it
develops and runs France’s largest network of homes
for the dependent elderly with 76 establishments and
facilities offering accommodation for 4,810 people;
• as a direct player in the campaign against illiteracy, it
offers support for young people in difficulty;
• as a social experimenter, it selects and finances
innovative projects in favor of personal autonomy and
the fight against social exclusion.
Tailoring its support as closely as possible to
regional needs, the Foundation acts as an umbrella
organization for eleven other foundations created
under its aegis by individual Caisses d’Epargne,
including two such foundations set up in 2006.
Combining social solidarity with efficiency,
compassion with modernity
The Caisses d’Epargne Foundation for Social
Solidarity has been expressing this commitment every
day for the past five years, with particulary spectacular
developments over the last four years: the network of
residential homes has grown from 21 to 76; the Savoirs
pour réussir (Knowledge for Success) initiative
designed to combat illiteracy boasted ten centers at
the end of 2006; and 308 social innovation projects
have been financed in the space of three years.
Dependent individuals:
rapid growth in reception capacity
In 2006, in the area of facilities for elderly people
increasingly unable to take care of themselves, the
Foundation opened a day care center in Paris for some
sixty individuals suffering from Alzheimer’s disease.
It also completed two restructuring operations
and launched seven others. Finally, it launched the
construction of seven new residences and drew up
applications for 14 extension projects and the creation
of 19 new establishments.
With respect to the disabled, the Foundation
dedicated two establishments entirely to the reception
of people suffering from disabilities, and two residences
have opened reception facilities for disabled people
over the age of 60. The first stone of a complex of three
establishments grouped together to provide premises
and work for the disabled was laid in Paris.
In this way, the 76 establishments comprising
the network include 67 residences under direct
management providing health care and social welfare
services (the majority of which are designated as
nursing homes for the dependent elderly – EHPAD),
one residence under a management contract, three
centers providing follow-up care or physical
rehabilitation that accommodate 4,000 patients every
year, and five platforms providing home support
services or telephone assistance with a total of
approximately 6,300 subscribers.
5
platforms
providing services allowing
6,300 subscribers to continue
living in their own homes
More than 500 new employees joined the
Foundation in 2006 taking the total headcount
to almost 3,000. In 2007, the Foundation is expected
to become the largest institution of its kind in terms
of staff numbers: 98% are employed in residences and
care centers doing both difficult and demanding work.
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What has
promoting literacy
got to do
with a bank?
for young people with little or no education
Savoirs pour réussir (Knowledge for Success) is an initiative that helps young people, every year,
to acquire the basic skills of reading and writing. Savoirs pour réussir is a program organized
by the French savings banks and their partners who, in liaison with the Caisses d’Epargne
Foundation for Social Solidarity, have opened ten sites in France capable of welcoming young
people aged 16 to 25 with little or no formal education. Savoirs pour réussir is a team of volunteer
tutors trained by the Foundation, including cooperative shareholders of the Caisses d’Epargne,
current or former employees and members of associations. By allowing these young people
to acquire a taste for learning, Savoirs pour réussir gives them the means they need to regain
self-confidence and have faith their own future. Isn’t it also the role of a banker to help everyone
contributing to the life of the economy to bring their projects to a successful conclusion?
102
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Training and quality
Support given to the elderly, infirm or disabled
calls for an ever greater degree of professionalism,
whatever its nature: the quality of reception, relations
with the families, individual safety, medical services
(including terminal care), managerial rigorousness,
the completion of investments. A concerted effort has
been made to train the least qualified employees to
higher professional standards and to improve skills.
The Foundation devoted more than one million euros
to training in 2006.
2,242
employees
trained in 2006
The Foundation was one of the first to adopt,
as early as 2005, the quality and appraisal approach
provided for by the French Law reforming social and
medico-social actions. This approach is already
operational in 40 establishments and will be
extended further in 2007. The Foundation is also
using this approach to develop a specific reference
system for the support of the disabled and individuals
unable to leave their own homes.
The campaign against illiteracy:
extension of the training program
Three new Savoirs pour réussir centers were
created in 2006 with the support of individual
Caisses d’Epargne, local authorities and other
partners, to offer assistance to young people with
literacy problems. A total of 17 centers should be up
and running by the end of 2007.
The identification of young people who have not
mastered the basic skills of reading and writing uses
the national service call-up screening system and the
local literacy structures. In 2005, the Foundation
signed a national agreement providing for the
deployment of the Savoirs pour réussir initiative with
five French government ministries – Defense;
Employment, Social Cohesion & Housing; Agriculture
& Fisheries; Youth, Sport & Voluntary Associations;
National Education, Higher Education & Research –
along with the Catholic Education Organization, the
National Council of Local Missions and the National
Agency for the Promotion of Literacy (ANLCI).
initiatives defined and conducted by the Foundation.
These funds went to a total of 97 projects.
In the field of support for independent living,
permanent contact with vulnerable individuals
allows the Foundation to devise support policies
based on a detailed understanding of the real-life
situation. In 2006, the Foundation provided funding
for nearly €5.7 million in support of a large number
of projects. In particular, it teamed up with the
National Federation of French Mutual Insurance
Companies (FNMF) to create eight centers
specializing in low vision and hearing aids to provide
home-based rehabilitation solutions for the elderly.
With Ecureuil Assurances IARD and the involvement
of three individual Caisses d’Epargne, the Caisses
d’Epargne Foundation for Social Solidarity has
enabled seriously disabled individuals to take to
the road once again in specially adapted vehicles.
A CONFORT DE VIE PRIZE
FOR MADE-TO-MEASURE ACCOMMODATION
The Caisses d’Epargne Foundation for Social Solidarity
and Crédit Foncier de France have created the Confort de
vie (Life Comfort) prize to give official recognition
to real estate developments satisfying two essential
criteria: universal accessibility and compliance with
the demands of sustainable development. State-run or
private retirement homes (whether providing nursing
facilities or not), hospitals and private clinics, public
or private HLM subsidized housing organizations,
semi-public real estate companies, local authorities,
non-profit associations and mutual insurance
companies, real estate developers and builders of singlefamily houses can all compete for this prize worth a
total of €150,000. The Foundation has also undertaken
to provide funding of €168,000 over a two-year period
for projects designed to promote accessibility in housing
under an agreement with the Confédération de
l’artisanat et des petites entreprises du bâtiment
(CAPEB, or Confederation of craftmen and small
businesses in the building sector). In addition, it has
established a partnership with the CEA and the
A.P.P.R.O.C.H.E. network to promote robotics for people
with disabilities in order to develop a home-based
rehabilitation system for people who suffer from
impaired use of their arms and a robot capable of
picking up objects using an intelligent optical camera
mounted on an articulated arm.
General public-interest activities:
97 projects given financial support
In 2006, the Group’s different companies paid out
almost €5.7 million to finance general public-interest
Mr. N., beneficiary of the 1st innovation prize in the “Technological
Innovation” category of the 2006 Confort de vie prize for the construction
of accommodation perfectly tailored for his particular disability.
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7
SOLIDARITY
& SOCIAL
COMMITMENT
THE BAROMETER OF SOLIDARITY IN FRANCE
New partnerships
Regarding the campaign against illiteracy, the
Foundation has concluded two new partnerships: with
the French Red Cross to carry out joint actions
targeted at young people aged 16 to 25, and with the
L’Etudiant press group based on an invitation to submit
projects on the theme of “L’illettrisme : l’affaire de
tous” (Illiteracy is everybody’s business). Six initiatives
were rewarded with an overall award of €100,000.
Other projects were given financial support
in areas related to the fight against lead poisoning
with the Médecins du Monde organization,
the combat to reduce poverty with the Agence
nouvelle des solidarités actives (New Agency for
active solidarity) and training in social emergency
professions with the public-interest grouping
Traces de pas.
2006 also provided an opportunity to take stock
of three years’ support given to general publicinterest initiatives in areas related to the conversion
of accommodation and adaptation of service
networks. This appraisal led to the identification
of the best practices and initiatives with a view to
facilitating their promotion.
The Foundation also published a document
containing ten recommendations for social housing
enterprises to encourage them to include
converted accommodation in their construction
or renovation programs.
What is more, two new foundations operating
under the aegis of, and in the same areas as,
the Caisses d’Epargne Foundation have joined the
other nine foundations already in the umbrella
organization. The first of these new foundations
is the Caisse d’Epargne Val de France-Orléanais
Foundation and the second, created in response
to an idea developed by Professor Etienne-Emile
Baulieu and named Fondation Vivre Longtemps
(or the Long Life Foundation) is dedicated
to research into the prevention of ageing and
to the struggle against all the different forms
of old age-related dependence.
A contribution to the debate
over the major challenges facing society
Twice a year, the Caisses d’Epargne Foundation
for Social Solidarity organizes a series of meetings
devoted to each of its two key areas of activity:
the autonomy of the elderly, infirm or disabled,
and the struggle against social exclusion, notably
via the campaign to promote literacy.
104
At the request of the Foundation, the first barometer
survey of family solidarity in France was carried out
in 2006 by the CRÉDOC – the Research Centre for the
Study and Monitoring of Living Standards – in partnership
with the magazines Notre temps, Seniorscopie.com
and Phosphore. Despite the rise in individualism,
the dispersion of families and geographical mobility,
inter-generational assistance is still a widespread practice
benefiting both the younger and older, more elderly
and dependent members of the family. This research
was published in the CRÉDOC’s monthly newsletter
– Consommation et Modes de Vie (no. 200, February 2007).
Known as the Diagonales seminars, these
meetings provide an opportunity for a great many
prominent figures and representatives from
the healthcare and social welfare sectors to meet,
discuss and exchange their different points of view
regarding major challenges facing society. The
most recent Diagonales seminar in October 2006
was devoted to solidarity between the generations;
the next meeting, held in May 2007, focused on
the struggle against economic exclusion.
Ambitious targets for 2010
As a continuation of its rapid development, the
Caisses d’Epargne Foundation for Social Solidarity
has set itself three targets for 2010:
• 10,000 places in its different establishments to
satisfy the needs of the elderly, infirm or disabled
and to enhance their autonomy;
• 10,000 elderly, disabled or infirm people offered
care in their own homes by the Foundation’s services;
• 10,000 young people offered assistance every year
within the framework of the Savoirs pour réussir
program designed to combat illiteracy.
The resources of the Caisses d’Epargne
Foundation for Social Solidarity
in millions of euros (2006, provisional figures)
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SUSTAINABLE DEVELOPMENT
T
he general public-interest, a
preoccupation central to the Group’s
activities since its creation, lends
particular significance to its more
general drive in favor of sustainable
development, an approach that forms an
integral part of the bank’s 2004-2007 strategic plan.
The deployment of this approach is based on a
national steering committee and a new Sustainable
Development and General Interest division created
within the CNCE in 2006 and reporting directly to
the senior management team in order to put
sustainable development at the very heart
of all the business activities pursued by the Group.
This division enjoys the support of a network
of sustainable development managers in each
Groupe Caisse d’Epargne entity.
The programs adopted all satisfy three priority
objectives: environmental protection (which includes
real estate and contributes to the creation of “green”
products for the benefit of its customers), socially
responsible investment (SRI), and integration through
employment.
Protecting the environment…
A trial carbon audit scheme – known as the Bilan
Carbone® – has been launched by the CNCE,
the Caisse d’Epargne Provence-Alpes-Corse and
the Caisse d’Epargne des Alpes. Developed by
the French Environment and Energy Management
THE GUIDE TO
ECO-RESPONSIBLE
PRACTICES
IN THE OFFICE
Designed with
the WWF, of which
the Group is a
partner, this guide
contained on a
CD-ROM is circulated
to the head offices
and branches by the
Group’s sustainable
development managers.
ENERGY
EFFICIENCY OF
BUILDINGS
Energy efficiency
is enhanced by
the appropriate
choice of materials
and equipment, and
building insulation.
Agency (ADEME), this carbon audit quantifies direct
or indirect emissions of six greenhouse gases for
a given activity or site. Bilan Carbone® audits will be
continued throughout the Caisses d’Epargne network
in 2007.
Employees’ business travel accounts for a major
proportion of greenhouse gas emissions. The CNCE
has adopted a tool designed to calculate the amount
of emissions related to the organization of major
meetings, and provides a number of recommended
ways to reduce their number. This tool was applied
for the first time to the seminars staged in Lyon by
the Retail Banking arm in November 2006 attended
by some 2,000 employees.
The Group applies environmental quality standards
in its new buildings – such as the headquarters of
– and in its renovation operations. These standards
are based on the High Environmental Quality (HEQ)
benchmark.
The Group’s subsidized housing subsidiaries,
supported by the Foundation’s pilot projects, make a
considerable effort to improve the quality and energy
efficiency of their housing units when they are first
designed and during their subsequent renovation.
The CNCE’s procurement and general services
division takes account of sustainable development
criteria in the selection, referencing and tracking
of its suppliers. It also includes HEQ requirements
in building specifications and proposes standards
to facilitate the selection of environmentally
responsible products.
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7
SOLIDARITY
& SOCIAL
COMMITMENT
This is the case with tram systems, wind farms or
the construction of high speed rail links that cause
less pollution than cars or planes.
… and helping our customers to do the same
Working in partnership with the European
Investment Bank or the French Environment and
Energy Management Agency (ADEME) where
appropriate, the Caisses d’Epargne offer
advantageous financing packages to local authorities
involved in projects contributing to sustainable
development. As no. 1 partner to social housing
bodies, they raise awareness about the importance
of environmental quality in new buildings and
renovation projects.
The Group lends its support to ADEME in the
deployment of the Bilan Carbone® Collectivités
scheme – the carbon audit tailored for local
authorities – which allows local government to take
account of greenhouse gas emissions in their
various investment decisions.
THE CHILDREN’S APPEAL FOR THE ENVIRONMENT
The Group teamed up with this operation launched by
the WWF in 2006 under the aegis of the French Ministry
of National Education, Higher Education and Research.
A total of 25,000 schools entered the competition to
create a poster to illustrate the topic of “water and
solidarity”. Several French savings banks supported this
project by offering the prize-winning pupils teaching
manuals designed by the WWF. At the same time, the
children of Group employees were invited to create a
work devoted to the topic of “Water, Life, Mankind”.
For its business customers, Caisse d’Epargne
continued to roll out its Cordé sustainable
development self-diagnosis tool developed with
Vigeo, an extra-financial social responsibility rating
agency. Twelve Caisses d’Epargne have already
launched Cordé or plan to do so in 2007.
In 2006, Ecureuil Crédit Développement Durable,
a sustainable development credit facility, was
launched for individual customers. This loan can be
used to finance the acquisition of a clean or
eco-friendly vehicle (based on criteria drawn up by
ADEME) and work undertaken to achieve savings
in energy consumption, eligible for French tax relief.
Project financing and development
of socially responsible investment
Groupe Caisse d’Epargne is one of France’s
most active banks regarding the financing
of infrastructure projects, a great many of which
help to protect the natural environment.
106
A pioneer in the area of socially responsible
investment (SRI) with its Insertion Emplois (Job
Integration) mutual fund, the Group further expanded
its offering in this area in 2006 with the creation of its
Insertion Emplois Equilibre fund. Just like its equitybased counterpart, this fixed-income, diversified
management product makes it possible to invest up
to 10% of the fund in unlisted companies working in
the “solidarity” economy, selected by France Active.
Several Group entities also manage funds dedicated
to socially responsible investment, notably in areas
related to water, new sources of energy and
the treatment of waste.
Promoting integration through employment
Groupe Caisse d’Epargne is extremely active in
the area of integration through employment through
its écureuil & solidarité local and social economy
projects, which devoted more than €21 million to this
area in 2006. This approach is based on partnerships
forged with the principal support bodies in France.
In this respect, 2006 was marked by the launch of
a series of Parcours Confiance (Trust Approach) social
support initiatives, combined with the possibility of
credit facilities. An agreement was signed with the
Caisse des Dépôts to allow the Social Cohesion Fund
to underwrite these subsidized loans.
Almost €22m
devoted to
integration through
employment in 2006
Within the Group itself, the increase in the number
of disabled employees, and the drive to keep
employees who develop disabilities in employment, are
the object of a major effort. A Disability and Diversity
Taskforce created in the CNCE and 40 disability
correspondents in the Group’s different companies are
responsible for promoting and giving tangible
expression to action in this area.
In 2006, a national agreement in favor of the
employment of the disabled was finalized. Apart from
setting aside 170 additional positions for the disabled,
this agreement also provides for the adaptation of
training programs, personalized assistance for each new
recruit, experimental modifications of work stations to
facilitate the integration of employees who are partially
sighted or hard of hearing, and a greater contribution to
the training of young people with disabilities with student
grants, the reception of interns, and the donation of
equipment to schools and universities.
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CORPORATE PHILANTHROPY AND SPONSORSHIP
C
aisse d’Epargne is a major partner of
national, regional and local sporting
activities. It focuses its attention
on popular sports, accessible to
the greatest number, notably football,
athletics, jogging and cycling. As far
as the sponsorship of cultural activities and our
heritage is concerned, the Group is the sole patron
of the Belem, France’s last surviving merchant
sailing ship, and the long-standing partner of the
International Comic Book Festival in Angoulême.
Supporting accessible and popular sports
The Group has been a partner of the French
athletics movement since 1978, supporting both the
French Athletics Federation and the French team. It is
also a founding partner and sponsor of the Destination
Athlé 2012 project, an ambitious federal program
designed to detect and support the new athletic talents
of the future. Several Caisses d’Epargne, as well as the
CNCE, provide direct financial support for a number of
athletes and two training squads. The French savings
bank also supports more popular forms of athletics.
Under the Esprit Running label, it is one of the
foremost partners of jogging in France, sponsoring
more than 300 races including the Paris Marathon
and the Caisse d’Epargne Lyon Marathon.
Since 2003, the Group has helped to support major
popular sports by becoming an official partner of
the France Football Cup, the most highly prestigious
event in the French football calendar. It also supports
the best amateur clubs entering this competition
with the Caisse d’Epargne Trophy.
In 2006, the Group continued to back the Caisse
d’Epargne-Illes Balears cycling team, which,
since 2007, has been racing under the colors of its
principal sponsor, Caisse d’Epargne. The team
ended the year at the top of the combined UCI
ranking, reasserting its position as one of the
major, front-running teams worldwide. Two of its
members distinguished themselves in particular:
Oscar Pereiro came second in the Tour de France
and Florent Brard was 2006 Champion of France
in the road-racing category.
Corporate sponsorship: long-term commitments
For 27 years, Groupe Caisse d’Epargne has been
the patron of the Belem, the last living testimony
to the French fleet of ocean-going trading vessels
in the 19th century.
In acknowledgement of this commitment,
Charles Milhaud was awarded the Remarkable
Patronage Medal by the French Minister of Culture
and Communication.
Created in 1979, the Belem Foundation
– state-approved – operates the ship, which was
classified as an historical monument in 1984.
Equipped as a civilian training ship, the Belem
welcomes trainees and companies for six months
of the year to discover the know-how and traditions
of the great sailing vessels of the past.
The 110th anniversary of the Belem was celebrated in
several French ports in 2006. This anniversary was also
marked by the creation of the Belem Prize for Maritime
Authors, attributed this year to Isabelle Autissier and
Jean-Pierre Mélis, and by the publication of the first
comic book based on the history of the ship, created by
the Belgian graphic artist Jean-Yves Delitte.
As the no.1 bank for young people, Caisse
d’Epargne has also been a partner, for the past
22 years, of the Angoulême International Comic
Book Festival, an event that has become the world’s
leading festival in this area. The bank supports
young creative artists at this festival, and has been
sponsoring the national schools comic book
competition since it was first created.
Several Caisses d’Epargne at a regional level also
lend their support to major events devoted to this
literary genre, whose popularity continues unabated
in France. In 2006, the Group also sponsored
the second Fête de la BD (Comic Book Festival) in
partnership with the French Publishers Association.
Several Groupe Caisse d’Epargne companies pursue
their own sponsorship programs such as, for example,
IXIS CIB, one of the foremost patrons of the Quai Branly
museum of indigenous arts, or the financial support
provided by several regional Caisses d’Epargne and
Group companies that allowed the Splendeur de Venise
1500-1600 (Splendor of Venice, 1500-1600) exhibition to
be staged in Bordeaux and Caen.
107
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Page 108
Enhanced
financial
strength
108
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Page 109
SIMPLIFIED
FINANCIAL
STATEMENTS
Groupe Caisse d’Epargne boasts extremely strong growth in its annual
results for 2006. Net banking income, up by 13.4%, rose to a total
of €11.3 billion. Consolidated net income doubled in size, increasing
to €3.8 billion.
The Group’s financial strength has been reinforced with consolidated
equity of €20 billion, providing it with one of the best Tier One ratios
in the French banking industry, at 8.7%. The €7 billion consumed
by the withdrawal of the Caisse des Dépôts from the Group’s capital
has already been restored.
109
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Page 110
IFRS CONSOLIDATED BALANCE SHEET
of Groupe Caisse d’Epargne
ASSETS
in millions of euros
Dec. 31, 2006
Dec. 31, 2005
Cash and amounts due from central banks and post office banks
Financial assets at fair value through profit or loss
Derivatives used for hedging purposes
Available-for-sale financial assets
Loans and receivables due from credit institutions
Loans and receivables due from customers
Remeasurement adjustment on interest-rate risk hedged portfolios
Held-to-maturity financial assets
Current and deferred tax assets
Accrued income and other assets
Investments in companies accounted for by the equity method
Investment property
Property, plant and equipment
Intangible assets
Goodwill
5,048
69,831
3,291
51,115
147,073
230,184
167
4,846
1,485
17,352
3,140
808
2,771
402
2,198
8,288
128,694
3,696
51,310
178,807
203,660
580
2,162
2,182
27,157
2,729
447
2,499
379
1,983
Total assets
539,711
614,573
Dec. 31, 2006
Dec. 31, 2005
Due to central banks and post office banks
Financial liabilities at fair value through profit or loss
Due to credit institutions
Due to customers
Debt securities
Current and deferred tax liabilities
Accrued expenses and other liabilities
Technical reserves of insurance companies
Provisions for contingencies and charges
Subordinated debt
Consolidated equity
Attributable to equity holders of the parent
Share capital and additional paid-in capital
Retained earnings
Net income for the period
Unrealized or deferred gains and losses
Minority interests
258
53,122
2,867
71,908
206,241
134,396
238
709
25,107
11,291
2,870
10,245
20,459
20,032
3,955
10,425
3,832
1,820
427
47
131,833
2,741
98,798
218,633
102,533
333
480
25,470
1,506
3,211
8,509
20,479
19,965
6,069
10,351
1,780
1,765
514
Total liabilities and equity
539,711
614,573
LIABILITIES AND EQUITY
110
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Page 111
IFRS CONSOLIDATED STATEMENT OF INCOME
of Groupe Caisse d’Epargne
2006
2005
23,778
(19,515)
5,265
(916)
20,089
(16,006)
4,609
(795)
1,628
641
1,379
(940)
11,320
1,200
525
1,255
(897)
9,980
(8,058)
(7,257)
(420)
2,842
(442)
2,281
Cost of risk
Operating income
(23)
2,819
(150)
2,131
Share in net income of companies accounted for by the equity method
Net gains or losses on other assets
Changes in value of goodwill
Income before tax
407
2,009
(3)
5,232
274
137
(1)
2,541
(1,281)
3,951
(683)
1,858
(119)
3,832
(78)
1,780
Interest and similar income
Interest and similar expense
Commission income
Commission expense
Net gains or losses on financial instruments at fair value
through profit or loss
Net gains or losses on available-for-sale financial assets
Income from other activities
Expense on other activities
Net banking income
Operating expenses
Depreciation, amortization and impairment of property,
plant and equipment and intangible assets
Income tax
Net income
Minority interests
Net income attributable to equity holders of the parent
111
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IFRS CONSOLIDATED BALANCE SHEET
of CNCE Group
ASSETS
Cash and amounts due from central banks and post office banks
Financial assets at fair value through profit or loss
Dec. 31, 2006
Dec. 31, 2005
3,989
7,419
64,374
123,976
3,105
3,570
29,890
31,701
Loans and receivables due from credit institutions
132,120
157, 533
Loans and receivables due from customers
114,398
96,632
149
577
Available-for-sale financial assets
Held-to-maturity financial assets
Current and deferred tax assets
Accrued income and other assets
Investments in companies accounted for by the equity method
Investment property
Property, plant and equipment
Intangible assets
2,713
281
549
1,220
12,521
22,615
4,591
6,393
512
118
1,160
1,050
277
256
2,179
2,051
372,527
455,392
Dec. 31, 2006
Dec. 31, 2005
Due to central banks and post office banks
Financial liabilities at fair value through profit or loss
Due to credit institutions
Due to customers
Debt securities
Current and deferred tax liabilities
Accrued expenses and other liabilities
Technical reserves of insurance companies
Provisions for contingencies and charges
Subordinated debt
Consolidated equity
Attributable to equity holders of the parent
Share capital and additional paid-in capital
Retained earnings
Net income for the period
Unrealized or deferred gains and losses
Minority interests
229
52,963
2,749
101,232
27,441
133,626
166
360
20,092
11,217
716
10,789
10,947
10,583
6,561
(699)
3,299
1,422
364
4
132,205
2,667
127,476
44,136
102,131
137
446
21,556
1,434
705
8,813
13,682
13,201
9,298
1,415
1,130
1,358
481
Total liabilities and equity
372,527
455,392
Goodwill
Total assets
LIABILITIES AND EQUITY
112
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Page 113
IFRS CONSOLIDATED STATEMENT OF INCOME
of CNCE Group
2006
2005
17,261
(16,301)
3,140
(818)
13,445
(12,813)
2,630
(690)
1,498
279
1,038
(712)
5,385
1,169
341
890
(599)
4,373
(4,044)
(3,337)
(187)
1,154
(172)
864
Cost of risk
Operating income
88
1,242
(5)
859
Share in net income of companies accounted for by the equity method
Net gains or losses on other assets
Changes in value of goodwill
Income before tax
692
2,406
(43)
4,297
462
136
(1)
1,456
Income tax
Net income
(878)
3,419
(251)
1,205
Minority interests
Net income attributable to equity holders of the parent
(120)
3,299
(75)
1,130
Interest and similar income
Interest and similar expense
Commission income
Commission expense
Net gains or losses on financial instruments at fair value
through profit or loss
Net gains or losses on available-for-sale financial assets
Income from other activities
Expense on other activities
Net banking income
Operating expenses
Depreciation, amortization and impairment of property,
plant and equipment and intangible assets
113
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You would like
further details?
The Group’s institutional website: www.groupe.caisse-epargne.com
The reference document: the annual report may be consulted on the website, where orders
for printed copies may also be placed.
The Sustainable Development report: this document may be consulted on the website.
Orders for printed copies may be placed with the Direction du Développement durable et
de l’Intérêt général – CNCE, 50, avenue Pierre-Mendès-France, 75201 Paris Cedex 13 – France.
The Observatoire Caisse d’Epargne 2007: les PME, les entrepreneurs et leurs territoires
(SMEs, entrepreneurs and their local dimension). Orders for printed copies may be placed
on the site.
114
27/07/07
Design and production:
14:03
Page 115
; CNCE, External Communications Department.
Photos: Alastair Miller – Pascal Dolémieux/Rapho – Getty Images – Corbis – Sylvain Modet
– Damien Chavanat – Erick Saillet for Lyon Confluence – Musée du Quai Branly – Stevens Frémont –
RFF – Mission SEA – NIKO – © PL Douere – Nicolas Tavernier – Isabelle Thévignot – D. Gauthey
for the Caisses d’Epargne Foundation for Social Solidarity – Pierre Nazereau – Philippe Hiest
– Christian de Crépy, architect – DR SEM Gers – DR.
This document is printed on Condat Silk paper, certified compliant with ISO 9001 international standards and bearing the PEFC label.
This label certifies that forest management techniques comply with the requirements of sustainable development.
27/07/07
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Page 116
27/07/07
11:40
Page 2
Corporate structure
440 local savings
companies (LSC)
shareholders
80% (shares)
Caisses
d’Epargne
(1)
20% (CCIs)
100%
COMMERCIAL BANKING
SPECIALIST BANK FOR
RETAIL BANKING
Businesses
Local authorities
and institutions
Social economy
and social housing
Individuals
Professionals
Businesses
Local authorities
34.44%
COMMERCIAL BANKING
Banking
networks*
Insurance
Banque Palatine
Financière OCÉOR2
Banque BCP
CIH (Morocco)5
CNP6, Ecureuil Vie7
BANK – NATIXIS8
Insurance
Life insurance
General insurance
Health/Provident
insurance
Real Estate
Bank – Natixis(1)
Financing solutions
Transactions/sales
Development
and promotion
property management
Asset Management
Private Equity and
Private Banking
Services
Specialized
financial
institutions
Crédit Foncier
GCE Habitat
GCE Immobilier
Financial Guaranty
Corporate and
investment banking
Asset management
Private equity
and Private banking
Services(2)
Financial guaranty
27/07/07
11:40
Page 1
Tel.: (33) 1 58 40 41 42 – Fax: (33) 1 58 40 48 00
CONTENTS
1
ESSENTIALS
2006 key figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2006 highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2
3
4
5
6
7
8
RISK MANAGEMENT,

2006 Review of Operations Groupe Caisse d`Epargne

Transcription

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