crédit mutuel group 2012

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crédit mutuel group 2012
THAT’S THE DIFFERENCE
CRÉDIT MUTUEL GROUP 2012
CRÉDIT MUTUEL GROUP
ANNUAL REPORT
2012
CONTENTS
2
CREDIT MUTUEL GROUP
Chairman's message
Board of Directors of Confédération
Nationale du Crédit Mutuel (CNCM)
42
5
6
8
BANKINSURANCE
OUR CORE BUSINESS
DIFFERENCE
THE MUTUAL BANK
Crédit Mutuel, strength through
cooperation
A decentralised structure
Operation through participation
A human resources policy geared
towards training
The Crédit Mutuel Foundation
Banking for all members of society
10
12
14
16
18
21
44
Retail banking, the group’s main business
The preferred bank of private individuals
Number one bank for non-profit associations
Number two bank for the farming sector
Number three bank for SMEs
Technology: Innovation as an anchor point
Subsidiaries: Specific services and tailored solutions
46
48
60
62
64
66
70
Insurance, the group’s second-largest business
72
76
24
OTHER ACTIVITIES
PROFILE
BROADER EXPERTISE
A DYNAMIC
GROUP
Key figures
A year inside
Crédit Mutuel group
Services and Solutions
Corporate and investment banking
Asset management and wealth
management
Technological services
26
30
78
82
88
92
32
DEVELOPMENT
2012 RESULTS
Business momentum
and enhanced solidity
34
FINANCIAL REPORT
SOLID FUNDAMENTALS
CNCM Board of Directors'
management report
Financial statements
Notes to the financial statements
Independent Auditor’s report
96
131
140
200
Annual Report 2012
3
CHAIRMAN’S
MESSAGE
W
ith the same drive to serve its members and customers, businesses,
retailers and self-employed professionals, Crédit Mutuel strengthened
its fundamentals and financials in 2012, achieving the right mix of
growth, efficiency and risk control. Net profit, group share, edged higher
from the previous year, to €2,150 million. Shareholders’ equity, group
share, increased by 12.3% to €37.4 billion, lifting the Tier 1 Ratio to 14.5%, the best in France
and among the highest for European banks.
Supported by its 79,000 employees and 24,000 directors, the group is continuing to develop
in France and Europe, working to better serve the needs of the 30 million customers and
members that are its lifeblood. This business momentum, combined with the group’s efforts
to share tools, rise to the digital challenge and remain on the cutting edge of technology
in banking, insurance, electronic payments, telephony and security, all contributed to
maintaining the group’s high rating.
Global Finance magazine named Crédit Mutuel best French bank and gave it the top
ranking in France among the world’s safest banks. It was also selected as the leading French
bank in the Posternak-Ifop survey and obtained the highest overall score in the Argus de
l’assurance/OpinionWay survey. These awards are a testament to how Crédit Mutuel’s values
of closeness, responsibility and solidarity are reflected in the field on a day-to-day basis,
reaffirming its identity as a mutual bank and the strength of its development model.
A bank for families and businesses, for individuals and society, Crédit Mutuel is working
hard to support the real economy and build its future as a European retail bank.
©Caroline Doutre
Michel Lucas
Chairman,
Confédération nationale du Crédit Mutuel
4
CREDIT MUTUEL GROUP
Annual Report 2012
5
01 Michel Lucas
02 Gérard Cormorèche
03 François Duret
04 Philippe Vasseur
05 Alain Têtedoie
11 Guy Allain
12 Jean-Louis Bazille
13 Hervé Brochard
14 Eric Charpentier
15 Jacques Chombart
16 Roger Danguel
06 Pierre Filliger
07 Jean-Louis Boisson
08 Gérard Bontoux
09 Alain Delserieys
10 Daniel Leroyer
17 Pascal Durand
18 Jean-Louis Dussouchaud
19 Jacques Enjalbert
20 Bernard Flouriot
21 Jean-Louis Girodot
22 André Halipré
23 Pierre Julius
24 Guénhaël Le Huec
25 Jean-Luc Le Pache
26 Maurice Loizeau
27 Jean-Luc Menet
28 Claude Osier
29 Albert Peccoux
30 Denis Schitz
31 Nicolas Théry
32 Michel Vieux
33 Joseph Vrignon
34 Christine Zanetti
BOARD OF DIRECTORS
OF CONFÉDÉRATION NATIONALE
DU CRÉDIT MUTUEL
at 31 May 2013
Bureau
Chairman
01
Michel Lucas,
Chairman of Crédit Mutuel Centre Est Europe
Vice-Chairmen
02
Gérard Cormorèche,
Chairman of Crédit Mutuel Sud-Est
03
François Duret,
Chairman of Crédit Mutuel Centre
04
Philippe Vasseur,
Chairman of Crédit Mutuel Nord Europe
Chief Financial Officer
05
Alain Têtedoie,
Chairman of Crédit Mutuel Loire-Atlantique
et Centre-Ouest
Group Secretary
06
Pierre Filliger,
Chairman of Crédit Mutuel Méditerranée
Other members
of the Bureau
Other directors
Guy Allain,
11
Director of Crédit Mutuel Bretagne
Jean-Louis Boisson,
07
Vice-Chairman of Crédit Mutuel Centre Est Europe
Gérard Bontoux,
08
Chairman of Crédit Mutuel Midi-Atlantique
Alain Delserieys,
09
Chief Executive Officer of Crédit Mutuel AntillesGuyane and Deputy Chief Executive Officer
of Crédit Mutuel Centre Est Europe
Daniel Leroyer,
10
Chairman of Crédit Mutuel Maine-Anjou,
Basse-Normandie
Jean-Louis Bazille,
12
Director of Crédit Mutuel Agricole et Rural
Hervé Brochard,
13
Chairman of Crédit Mutuel Normandie
Eric Charpentier,
14
Chief Executive Officer of Crédit Mutuel Nord Europe
15
Jacques Chombart,
Vice-Chairman of Crédit Mutuel Agricole et Rural
Roger Danguel,
16
Director of Crédit Mutuel Centre Est Europe
Pascal Durand,
17
Chief Executive Officer of Crédit Mutuel Maine-Anjou,
Basse-Normandie
Jean-Louis Dussouchaud,
18
Vice-Chairman of Crédit Mutuel Sud-Ouest
Jacques Enjalbert,
19
Director of Crédit Mutuel Bretagne
Bernard Flouriot,
20
Chairman of Crédit Mutuel Anjou
Jean-Louis Girodot,
21
Chairman of Crédit Mutuel Ile-de-France
André Halipré,
22
Vice-Chairman of Crédit Mutuel Nord Europe
Guénhaël Le Huec,
24
Director of Crédit Mutuel Bretagne
Jean-Luc Le Pache,
25
Director of Crédit Mutuel Bretagne
Maurice Loizeau,
26
Vice-Chairman of Crédit Mutuel Loire-Atlantique
et Centre-Ouest
Jean-Luc Menet,
The following people
also sit on the Board
35
36
Claude Osier,
37
Albert Peccoux,
Gilles Le Noc,
Corporate Secretary
28
Vice-Chairman of Crédit Mutuel Massif Central
Alain Fradin,
Chief Executive Officer
27
Chief Executive Officer of Crédit Mutuel Océan
Daniel Baal,
Deputy Chief Executive Officer
38
Etienne Pflimlin,
Honorary Chairman
29
Chairman of Crédit Mutuel Savoie-Mont Blanc
Denis Schitz,
30
Vice-Chairman of Crédit Mutuel Centre Est Europe
Nicolas Théry,
31
Deputy Chief Executive Officer of Crédit Mutuel
Centre Est Europe
Michel Vieux,
32
35 Daniel Baal
36 Alain Fradin
37 Gilles Le Noc
38 Etienne Pflimlin
Chairman of Crédit Mutuel Dauphiné-Vivarais
Joseph Vrignon,
33
Chairman of Crédit Mutuel Océan
Christine Zanetti,
34
Chief Executive Officer of Crédit Mutuel
Loire-Atlantique et Centre-Ouest
Pierre Julius,
23
Chairman of Crédit Mutuel Antilles-Guyane
6
CREDIT MUTUEL GROUP
Annual Report 2012
7
DIFFERENCE
THE MUTUAL BANK
GOOD IDEAS HAVE NO AGE, THEY ONLY HAVE
A FUTURE
ROBERT MALLET
8
THE MUTUAL BANK
Annual Report 2012
9
CRÉDIT MUTUEL, STRENGTH
THROUGH COOPERATION
THE CRÉDIT MUTUEL
NETWORK
The Group's main entity, Crédit Mutuel, is a cooperative bank
under the 10 September 1947 Act governing French cooperatives.
It belongs exclusively to its members, who own its capital and
2,116 local mutual banks
3,136 guichets
determine its strategy within a framework of democratic methods.
11.4 million customers,
including
of all its decisions. Its growth is exclusively based on its founding
10.3 million private individuals
These values have the same strategic importance for the bank as
7.4 million members
As a mutual bank, Crédit Mutuel places its members at the heart
values of solidarity, responsibility, equality, closeness and transparency.
service quality. They are the Crédit Mutuel hallmarks, and they tes-
As a financial cooperative, Crédit Mutuel is
tify to the relevance of its business model in modern France.
inalienable, meaning it can neither be sold
24,000 elected directors
nor taken over; it can be wound up only on
29,300 employees*
the decision of its members.
* Regulatory FTE headcount of
Crédit Mutuel at 31 December 2012,
including the regional federations,
the federal and interfederal banks
and the local mutuals.
Its decentralised organisation encourages
staff to become more involved at every level,
WHAT MAKES A MUTUAL BANK
DIFFERENT?
WHEN VALUES ARE AS STRATEGIC
AS SERVICE QUALITY,
THE DIFFERENCE SHOWS.
At the end of 2012, Crédit Mutuel had
Crédit Mutuel is a company based on people
be it local, regional or national, thus enhancing
7.4 million members and 11.4 million
rather than capital. It is not listed on the stock
the group’s responsiveness and service quality.
customers in more than 2,000 local mutual
exchange. Because it plays an important
It makes possible a short decision-making
banks run by 24,000 member-elected
role in the social economy, its sustainable
process, better risk diversification and a
mutual banks – which are closest to members
representatives.
development strategy is not bound by an
highly effective control system.
and customers – carrying out all the key
all-out quest for short-term profitability.
To serve its customers and society, Crédit
functions of bank branch offices, and the
Every year, 20,000 board of directors and/or
other two levels exercising only those functions
for which the local entities are not equipped.
Mutuel’s strategy combines sustainable
Sound management, crucial to the
supervisory board meetings and 2,000 general
development and solidarity(1). Historically,
company’s durability, is not geared towards
meetings take place in the 2,000-plus local
the bank has played a key social role,
the enrichment of a group of shareholders:
mutual banks, of which more than a half are
The governing bodies are made up of
notably through its action in support of
rather it serves to ensure growth and first-rate
located in rural areas. These meetings aim
representatives of the bank's members,
society’s most vulnerable members.
service quality in the most cost-effective way.
to assemble 10% of members; they provide
from the level of local general meetings
The shares held by members constitute the
a basis for truly democratic corporate
– where they are elected on a “one person,
capital classed as Tier 1 regulatory capital.
governance.
one vote” basis – right up to the Board of
They can be redeemed only at their face
value.
Directors at national level.
The local mutual banks are organised into
18 regional federations, which in turn are
With its solid local base, Crédit Mutuel
part of the national confederation.
cannot be moved offshore and stands as
an independent entity that contributes to
Crédit Mutuel’s three levels operate according
job creation and economic vitality in all
to the principle of subsidiarity, with the local
the areas in which it operates.
(1) Le rapport annuel sur la Responsabilité Sociale de l’Entreprise (RSE) est disponible sur www.creditmutuel.com
10 THE MUTUAL BANK
Annual Report 2012
11
THE 18 REGIONAL FEDERATIONS
OF CRÉDIT MUTUEL
Lillle
Lille
THE NATIONAL CONFEDERATION
AND THE CENTRAL FINANCING
BANK
CRÉDIT MUTUEL
ENSEIGNANT:
A SPECIAL
RELATIONSHIP
Union Nationale du Crédit
Mutuel Enseignant (UNCME)
has a membership of more
than 40 mutual banks
throughout France*.
They offer a service combining
clear terms and conditions,
high-quality products and
mutualist values to civil servants
employed by the departments
of education, research, youth
and sports and culture.
They can also offer their shares
to private sector teachers
and support staff with
government-issued contracts.
The CME banks promote their
core mutual values by providing
specially adapted products
including ‘young colleague’
solutions, loans, savings accounts,
banking services and insurance,
which are widely appreciated
among their members and
customers.
*www.creditmutuel.com
“espaces dédiés” tab
A DECENTRALISED
STRUCTURE
2,116 LOCAL MUTUAL BANKS
18 REGIONAL GROUPS
The first level of organisation is made up
of local mutual banks, or caisses locales,
which have the legal status of cooperative
companies with variable capital (sociétés
coopératives à capital variable).
These are credit institutions governed by
French banking law, with the capital owned
by their members, who are both shareholders
and customers. Financially independent, the
local mutual banks take deposits, distribute
loans and provide a full range of banking
services. Most decisions concerning customers
are taken at this level.
Each local mutual bank is governed by a
board of directors and/or a supervisory
board, made up of unpaid members elected
at general meetings on a “one person, one
vote” basis.
In all, there are more than 2,000 local mutual
banks, whose 24,000 directors represent
7.4 million members.
At the next level up, there are 18 regional
groups, each of which comprises a regional
federation and a federal bank or caisse
fédérale (or an interfederal bank or caisse
interfédérale, as is the case for the Centre Est
Europe, Ile-de-France, Sud-Est, Savoie-Mont
Blanc and Midi-Atlantique federations;
the Bretagne, Massif Central and Sud-Ouest
federations; the Loire-Atlantique et CentreOuest, Normandie, Centre, Dauphiné-Vivarais
and Méditerranéen federations (since 1 January
2011); and, since 1 January 2012, the Anjou
federation).
The local mutual banks and the federal
bank, of which they are shareholders, each
belong to a regional federation.
The regional federation is responsible for
strategy and supervision, and represents
Crédit Mutuel in its region.
The federal bank is responsible for functions
such as cash management and providing
technical and IT services.
The regional federations and the federal
bank are governed by boards elected by the
local mutual banks.
In addition to the 18 regional federations,
there is a federation with nationwide scope
specifically for the farming sector – Crédit
Mutuel Agricole et Rural (CMAR).
WHAT MAKES US DIFFERENT?
AN ORGANISATIONAL STRUCTURE
TAILORED TO THE NEEDS OF OUR
MEMBERS AND CUSTOMERS.
These bodies make up the third and top
level of organisation.
The Confédération Nationale, or national
confederation, which has the legal status of
a non-profit organisation, is the central body
governing the network in accordance with
the provisions of the French monetary and
financial code (Code monétaire et financier).
The 19 Fédérations and the Caisse Centrale
du Crédit Mutuel are affiliates of the
Confédération Nationale, which represents
Crédit Mutuel vis-à-vis the authorities and
is responsible for defending and promoting
its interests.
The Confédération Nationale also oversees
the proper operation of its member establishments, supervises the regional groups
and ensures the overall cohesion of the
network, as well as co-ordinating business
development and providing shared services.
The Caisse Centrale, or central financing
bank, manages treasury for the regional
groups and organises the pooling of Crédit
Mutuel’s financial resources. Its capital is
jointly owned by the Caisses Fédérales.
NORD EUROPE
NORMANDIE
NORMANDIE
Caen
Brest
Paris
ILE-DE-FRANCE
IL
LE-DE-FRANCE
E
MAINE-ANJOU,
BA
BASSE-NORMAN
B
ND
N
DIE
BASSE-NORMANDIE
BRETAGNE
Strasbourg
Laval
Lav
a al
CENTRE EST EUROPE
ANJOU
Nantes
Orléans
Orléan
é s
CENTRE
Ang
Ang
ngers
Angers
La
L
a Rochesur-Yon
OCÉAN
LOIRE-ATLANTIQUE
LOIR
LO
UE
E
ET
CE
CEN
CENTRE-OUEST
STT
ClermontFerrand
SAVOIESAVO
OIEMONTT BLANC
SUD-EST
Annecy
A ecy
An
Ann
Lyon
Lyo
yon
on
SUD-OUEST
DAU
DAUPHINÉ-VIVARA
HINÉ-VIVARA
RA
RAIS
DAUPHINÉ-VIVARAIS
MASSIF
CENTRAL
Bordeaux
Bordea
deaux
de
ux
Fort-de-France
Valence
Valenc
ence
n e
MÉDITERRANÉEN
MIDI-ATLANTIQUE
Toulouse
Marseille
Marseille
ANTILLES-GUYANE
THE REGIONAL GROUPS
The federal banks, which are the financial life blood of the regions, have in recent
years merged to form inter-regional federal banks.
Grouping them in this way has the effect of streamlining resources and cutting costs
via technical, IT and financial partnerships.
Regional groups as at 1 January 2013
■ Nord Europe federal bank
■ MAINE-ANJOU / BASSE-NORMANDIE
federal bank
CRÉDIT MUTUEL
PROFESSIONS DE SANTÉ
(CMPS): SPECIALISED
MUTUALS FOR THE
HEALTHCARE SECTOR
CMPS, which was created by medical
professionals more than 30 years ago,
is a network of branches dedicated
exclusively to healthcare sector workers.*
Representatives from all segments of the
medical and paramedical sectors sit on the
boards and supervisory bodies of these mutuals.
The banks assist practitioners with their
strategic and financial decisions, whether
work-related or private. In each case they offer
personalised solutions, from bankinsurance,
electronic payments and financing packages
for individual projects to wealth management
from a savings strategy perspective,
retirement planning and tax planning.
In addition to banking expertise, the CMPS
has developed active partnerships with
professional associations, unions, specialised
management associations, professional
guilds and regional and national institutional
bodies.
■ ARKÉA interfederal bank
(Inter-regional bank covering the Bretagne,
Massif Central and Sud-Ouest regions)
■ OCÉAN federal bank
■ ANTILLES-GUYANE federal bank
■ CRÉDIT MUTUEL (CM11) federal bank
(Inter-regional bank covering the Anjou, Centre,
Centre Est Europe, Dauphiné-Vivarais, Ile-de-France,
Loire-Atlantique Centre Ouest, Méditerranéen,
Midi-Atlantique, Normandie, Savoie-Mont Blanc
and Sud-Est regions)
Lille
NORD EUROPE
NORMANDIE
Caen
Brest
Paris
ILE-DE-FRANCE
MAINE-ANJOU,
BASSE-NORMANDIE
BRETAGNE
Strasbourg
Laval
CENTRE EST EUROPE
ANJOU
Nantes
Angers
La Rochesur-Yon
OCÉAN
Orléans
CENTRE
LOIRE-ATLANTIQUE
ET
CENTRE-OUEST
ClermontFerrand
SUD-EST
SAVOIEMONT BLANC
Annecy
Lyon
SUD-OUEST
MASSIF
CENTRAL
Bordeaux
Fort-deFrance
MIDI-ATLANTIQUE
Toulouse
DAUPHINÉ-VIVARAIS
Valence
MÉDITERRANÉEN
Marseille
ANTILLES-GUYANE
*www.creditmutuel.com
“espaces dédiés” tab
12 THE MUTUAL BANK
Annual Report 2012
13
Image: General meeting of members,
Crédit Mutuel Ile-de-France, May 2012
OPERATION THROUGH
PARTICIPATION
CUSTOMERS OF THE CRÉDIT
MUTUEL NETWORK
7.4 11.4
7.3 11.3
(millions)
As a mutual bank, Crédit Mutuel receives capital contributions through subscriptions
to member shares(1) that earn interest at a fixed rate set by the general meeting of
member shareholders, who are associates and co-owners of their local mutual bank.
Reserves serve to back the shared obligations of members and as security for
deposits. They are also used to finance long-term development.
At the end of 2012, Crédit Mutuel member shares(2) represented a total of €9.4 billion,
up 7.1% from the previous year, while €264 million(2) was paid to members in dividends,
representing 33.8% of the net earnings of the core cooperative business carried out by
the local mutual banks and federal banks.
2011
2012
Customers
Members
14 THE MUTUAL BANK
PARTICIPATION AND DEMOCRACY
Participation and democracy are the
cornerstones of Crédit Mutuel’s operation
as a mutual bank.
The 7.4 million Crédit Mutuel members
supervise the management of the local mutual
banks and elect the directors at general
meetings, ensuring genuinely democratic
governance.
The 24,000 elected voluntary directors
present at all three levels of the organisation
- local, regional and national - are responsible
for the group’s management and supervision.
Attentive to the needs and aspirations of the
members they represent, these directors are
themselves committed, active members and
participate in the administration of the local
mutual banks alongside the employees.
As members of the local communities, they
also exemplify the values that Crédit Mutuel
stands for, and help to ensure their implementation.
More than 29,000 Crédit Mutuel staff
members (average full-time equivalent
headcount) are responsible for implementing
company strategy and operating the business
under the supervision of the elected directors.
BUSINESS OPERATION
A decentralised structure, with decisionmaking processes at regional and local level,
favours entrepreneurship, a sense of personal
responsibility and team spirit. The ties
between the local mutual banks and the
regional federations and banks ensure the
cohesion of the various entities as regional
groups that operate as fully-fledged credit
institutions within the framework of French
banking regulations.
The regional groups cooperate freely to
rationalise resources and costs through
technical partnerships, notably in areas such
as information technology and financing.
Other avenues for cooperation are provided
by the Caisses Interfédérales serving more
than one regional bank and by joint
subsidiaries in insurance, leasing, factoring,
corporate banking, investment banking,
asset management and private banking.
Regional groups’ membership of the
Confédération Nationale and the Caisse
Centrale ensures cohesion and shared
responsibility at national level.
As the central body for the whole Crédit
Mutuel group, the Confédération Nationale
approves appointments to management
positions and regional audit teams in the
regional federations, and takes all necessary
steps to ensure the group’s proper operation,
with responsibility for overall control and
the coherence of business development.
Jointly with Internal Control committees at
regional federation level, the Confédération
Nationale reviews audit reports and reports
its findings to the boards concerned.
The Confédération Nationale’s Board of
Directors comprises representatives of
all the regional federations, elected by
the general meeting of Confédération
Nationale shareholders.
This general meeting also elects the Chairman
for five years.
Mutual members are thus represented at all
three levels of the organisation through the
directors they elect.
(1) ‘A’ shares are those shares initially subscribed
to by persons wishing to become members of a local
mutual bank and to acquire the right to vote at general
meetings on a “one person, one vote” basis.
‘B’ shares represent additional amounts paid in by members.
They earn dividends but carry no voting rights.
(2) Excluding ‘A’ shares
CORPORATE DEMOCRACY?
IT’S A BANK THAT BELONGS TO ITS
MEMBERS AND CUSTOMERS –
AND THAT CHANGES EVERYTHING
ONE PERSON, ONE VOTE
The Annual General Meetings
that members and customers of
the local mutual banks are invited
to attend each year are the basis
of Crédit Mutuel’s democratic
structure. General meetings
provide members with a special
opportunity to meet the bank’s
directors and employees and learn
more about the business and
express their own views. They also
offer a forum for suggestions and
discussion of ways to enhance
services, reflecting the values
that distinguish Crédit Mutuel
from other banks.
Required items on the agenda
include a report on the entity’s
management and activities and
on its specific actions as a mutual
bank, leading up to approval of the
financial statements and the election
of directors on the basis of one
person, one vote. A second part
of the meeting is devoted to the
presentation and discussion of
current themes and events.
Some 500,000 members and
customers attend the regional
and local annual meetings held
between February and May.
Annual Report 2012
15
MAXIMISING EXPERTISE?
IT MEANS HELPING EMPLOYEES
EVOLVE BY HONING THEIR SKILLS
TO KEEP UP WITH CHANGES
IN THE BUSINESS
A HUMAN RESOURCES
POLICY GEARED TOWARDS
TRAINING
Crédit Mutuel has 79,060 employees (1) .
The 1.4% increase in the headcount mainly
reflects acquisitions, without which staff
numbers were unchanged year-on-year.
Staff signed up for almost 1,000 professional
training initiatives during the year (vocational
contracts and programmes). Experienced
employees took advantage of some 400
vocational programmes to adapt their skills
to business changes.
Crédit Mutuel provides staff members
with training opportunities throughout their
careers, reflected by a training budget
equivalent in 2012 to 5% of the payroll.
The role played by the bank in labour
relations was confirmed in June 2012 with
the signature of a collective agreement on
the right to organise and social dialogue
with all of the six representative trade union
organisations that represent its employees.
The agreement reaffirms and updates the
social dialogue system previously in place.
At Crédit Mutuel, social dialogue encompasses all of the periodic negotiations the
law requires for specific sectors.
Trade unions can also request negotiations
on specific topics, provided that these fall
within the remit of the Crédit Mutuel
regional federations regarding negotiations.
Another agreement was signed in January
2012 with three of the six representative
trade union organisations, under which the
composition of the committee will now reflect
that of Crédit Mutuel’s ‘regulatory’ scope,
meaning it will include the bodies that are
directly part of Confédération Nationale du
Crédit Mutuel (CNCM), as the central body
governing the network, and the subsidiaries
that serve all Crédit Mutuel federations,
called ‘national tools’. The agreement also
calls for a clearer definition of the respective
attributes and better sharing of information
between the three federal or interfederal
group committees and the national group
committee operating at the CNCM level.
Above and beyond new agreements, the
Commission Paritaire Confédérale (CPC)
oversees the implementation of existing
agreements and prepares annual reviews on
subjects that affect all parts of Crédit
Mutuel (overview of professional training
efforts, handling of disrespect, psychosocial
risks, gender equality, employment of the
disabled, etc.).
Meanwhile, France’s joint national commissions for monitoring and overseeing
training and jobs in the sector (Commission
paritaire nationale de l’emploi – CNPE –
and Obser vatoire des Métiers) also
contribute to analyses of changes affecting
the business.
In 2012, the Observatoire des Métiers for
Crédit Mutuel’s sector initiated an internal
analysis of changes in banking relations as
they relate to the expectations of customers
and to new technologies, and how these
changes are affecting the organisation and
evolution of the businesses.
(1) Full-time equivalent headcount
16 THE MUTUAL BANK
Annual Report 2012
17
THE CRÉDIT MUTUEL
FOUNDATION: TRANSLATING
SOLIDARITY INTO ACTION
Fondation du Crédit Mutuel, which was
created in early 2009 and operates under
the aegis of Fondation de France, houses
Crédit Mutuel’s various national corporate
sponsorship initiatives:
– the creation and support of long-term
mutual savings and credit networks to
help those working toward financial independence in emerging countries through
Centre International du Crédit Mutuel
(CICM);
– the promotion of reading and the French
language in all its forms through the
Reading programme;
– support for research into and action
against economic and social exclusion
through the Research and social assistance
programme;
– and, since 2010, support for the “Together,
Let’s Rebuild Haiti” programme.
In 2012, CICM was active in
Niger, Congo, the Central
African Republic, Cameroon,
Burkina Faso, the Philippines
and Cambodia. It also still
holds a stake in SIIMEC, an IT
services companies for networks that is developing the
SiBanque management software it launched in 1995.
18 THE MUTUAL BANK
CICM
Centre International du Crédit Mutuel (CICM)
was created in 1979. The 18 Crédit Mutuel
regional federations all participate in it.
CICM’s mission is to assure that those who
are excluded from the traditional banking
system in developing countries have access
to financial services and, more generally,
can improve their living conditions by
taking charge of their own lives. Through
the networks established in the countries in
question, CICM helps its members keep
their revenue safe, apply for loans and carry
out their professional and personal projects.
CICM can assist with projects just getting
off the ground or with existing cooperative
initiatives.
Its actions are guided by cooperative
and mutualist values. This means special
attention is paid to:
– Proximity, with banking services offered
to people across the country, regardless of
their location, financial resources or social
origin;
– Democracy, such that any member who
subscribes a share becomes not only
a beneficiary but also a co-owner of his
or her local mutual bank with the right
to participate in its general meeting,
elect members of the board of directors
and receive information about the collective management of savings;
– Subsidiarity, meaning that the local
mutual bank can delegate a portion of its
responsibilities to the federation when
it cannot assume them fully;
– Solidarity, the cornerstone of the mutual
model, allowing the savings available in
a local mutual bank to be pooled and
redistributed in the form of loans, as mutual
networks do not consider economic
profitability as their sole aim but also take
into account the social viability of their
business.
CICM helps promote the professionalism
of the establishments it assists and works
to put its initiatives on solid footing.
To this end, it has a network of expatriated
bank executives who volunteer their time,
makes regularly-updated IT tools available,
trains local employees in the banking business
and develops tools for each country to respond
specifically to needs expressed by members.
It contributes its technical expertise and implements the procedures required to hedge
credit risk and protect savings, and sets up
monitoring systems to fight money laundering.
All of this has allowed CICM to help promote the mutual model for almost 30 years
by developing independent institutions
that offer financial services to millions of
beneficiaries.
READING PROGRAMME
The Reading programme has been working
on the ground since 1992 to fight illiteracy
and help everyone enjoy reading. Its work
is based around three initiatives: Lire la ville
(Reading the town), Prévenir l’illettrisme
(Fighting illiteracy) and La Voix Des Lettres
(The power of literature).
– Lire la ville (Reading the town) gets thousands of school children above a certain
year group involved in reading and writing
projects linked to their immediate environment. Kids from primary, middle and
secondary schools gather information in
the field and from libraries to allow them
to better understand their lives and then
share their findings through exhibits,
videos or other materials they produce.
– Prévenir l’illettrisme (Fighting illiteracy)
provides the means for combating illiteracybased exclusion. Associations work directly
with families via existing structures such
as childcare establishments and libraries to
accustom children to books and reading as
early as possible. The Foundation brings
together these associations through a
national agency called Quand les livres
relient (“The binding power of books”).
– La Voix Des Lettres (The power of literature)
supports innovative initiatives that relate
to reading, including awards and programmes to promote reading aloud. Its flagship
Incorruptibles awards have 200,000 pupils
from nearly 3,000 schools across France
read select books and vote for their
favourite one.
Through its work with
Écrivains Associés de
Théâtre, the Reading
programme introduced more
than 3,500 pupils from
schools in Paris, Créteil,
Bordeaux and Nantes to
contemporary literature
and playwriting in 2012.
These pupils also had an
opportunity to read their own
texts aloud during year-end
events in each region.
The Solidarity Awards, created in 2003 by Sélection Reader’s Digest
magazine with France Bleu, recognise some ten associations every year
for their work on the ground. Throughout the year, those who read
Reader’s Digest and listen to France Bleu become familiar with the
volunteers behind the award-winning associations.
Initially sponsored by Crédit Mutuel Loire-Atlantique et Centre-Ouest,
the awards have been supported for the past three years by the Foundation,
which leverages the many partnerships Crédit Mutuel has forged with
associations.
Annual Report 2012
19
SOLIDARITY?
IT MEANS ASSISTING THOSE WHO
NEED HELP IN
BUILDING THEIR FUTURE
RESEARCH AND SOCIAL
ASSISTANCE PROGRAMME
Created in 2009, the Research and social
assistance programme organises initiatives
under three categories:
HAÏTI
Since the earthquake that hit Haiti
on 12 January 2010, Fondation du
Crédit Mutuel has supported the
Saint-Martin Avenir et développement
– solidarité Haïti association through
its “Together, Let’s Rebuild Haiti”
programme.
Thanks to mobilisation right across
the Crédit Mutuel group and an
appeal for donations from the bank’s
members and customers, the Foundation was able to fund the French
hospital reconstruction project in
Port-au-Prince and to help this institution regain financial independence.
20 THE MUTUAL BANK
Its financing of a new 154-unit residential district is also ongoing. The
first phase of this project, involving
the construction of 38 homes, was
inaugurated by Chairman Michael
Lucas on 7 July 2012. Ground should
be broken on the second phase
(48 homes) in 2013. These homes
will be part of a new city that already
has a school complex with a middle
and secondary school on the way.
All of these projects are described
in detail, with regular updates,
on Fondation du Crédit Mutuel’s
website at http://fondation.creditmutuel.com.
– Support for think tanks such as Mouvement Européen-France, Confrontations
Europe and Institut français des relations
internationales (Ifri);
– Support for research through the Prix
de la Recherche Coopérative (cooperative
research award), Recma and assistance of
various research teams working on topics
in which Crédit Mutuel has specialist
knowledge, such as mutualism, cooperation
and corporate social responsibility;
– Support for social economy entities
such as Conseil National des Cres, Coop
FR and Centre des Jeunes Dirigeants de
l’Economie Sociale.
SOLIDARITY-PROMOTING
INITIATIVES
The Foundation’s renewed support of
Passeport Avenir (“passport to the future”)
through finance facilities and information
workshops helps improve access to higher
education for pupils from disadvantaged
backgrounds.
By stepping up its involvement in clubs
of companies promoting integration at the
regional level (CREPI), the Foundation is
helping to build bridges between people
and jobs in the business world.
As a sponsor of the Reader’s Digest-France
Bleu solidarity awards for the third year
in a row, Fondation du Crédit Mutuel
rewarded around ten organisations in 2012
for their daily work in the area of social
initiatives.
BANKING FOR ALL
MEMBERS OF SOCIETY
The economic and financial crisis vindicated the group’s choices, namely its commitment
to strategic development and its decision to operate as a cooperative, mutual bank.
Crédit Mutuel leads the way in promoting social cohesion, as can be seen in its responsible
initiatives and solidarity-driven goals, implemented directly at ground level.
Spanning past and present and embodying commitment for the future, the ethic
of social responsibility is the cornerstone of the group’s actions, the driving force
behind a socially supportive, responsible bank.
PERSONAL MICRO-CREDIT
Crédit Mutuel assists the most vulnerable
sections of the population by extending
micro-credit within the framework of partnerships with non-profit organisations.
These loans, for amounts ranging between
€500 and €3,000, are granted to people who
have little or no access to credit, and have
no stable employment or are living on social
welfare but actively looking for work.
The group has signed more than 200 regional
agreements throughout France with social
and insertion assistance organisations such
as Secours Catholique, COORACE, UDAF
and a number of other family support
networks such as Familles Rurales, Emmaüs
and Restos du Cœur, together with local
employment agencies, large numbers of
community centres (CCAS) and local social
integration organisations.
The goal is to develop a joint approach to
help people in financial difficulty implement
a project that will enable them to find a job.
By opening accounts for them and extending
loans that are partly guaranteed by the
Fonds de Cohésion Sociale (French social
aid fund), Crédit Mutuel enables them to
regain access to the banking system and
become regular bank customers again.
Under an agreement signed with Caisse des
Dépôts et Consignations, Crédit Mutuel
assumes 50% of the risk on these loans and
the Fonds de Cohésion Sociale the other half.
HELPING PEOPLE THROUGH
MICRO-CREDIT: A SIGN OF COMMITMENT,
BECAUSE WHEN IT COMES TO SOCIAL
INVESTMENT, THERE’S NO SUCH
THING AS A SMALL PROJECT
Annual Report 2012
21
PROFESSIONAL MICRO-CREDIT
In 2012, the group financed almost €194
million in loans through three networks:
Association pour le Droit à l’Initiative
Economique (ADIE), France Active and
France Initiative.
Crédit Mutuel continues to be a partner
of ADIE, financing 1,258 of its projects
through seven regional federations and
a CIC regional bank, representing a total
of €3.1 million.
For over 20 years, the group has been working
with France Initiative, the leading network
of associations set up to promote local
economic development through help for
business start-ups and buyouts. The group
is actively involved with over 60% of its local
initiative platforms (172 for Crédit Mutuel
and 159 for CIC). In 2012, Crédit Mutuel
granted almost 2,800 loans (€170 million)
via this network, representing 19% of its
overall financing volume.
Crédit Mutuel also works alongside the
France Active network, which offers grants
and loans to initiatives aimed at promoting
economically-driven social integration.
It founded six of the organisation’s 38 regional
funds, sits on half of its financing committees,
and in 2012 backed 24% of the guarantees
extended, representing a commitment of
€27.6 million.
All in all, the group’s micro-lending to business
with these three partners represents 6,300
loans and a total commitment of almost
€226 million, factoring in the Nacre scheme.
MEMBERS IN FINANCIAL
DIFFICULTY: SPECIFIC
ASSISTANCE PROGRAMMES
Crédit Mutuel’s social assistance converts
words into action. Through its regional
federations, the group runs a number of
initiatives, of which several are described
below.
Since 2010, the Ark’ensol association
has coordinated Crédit Mutuel Arkéa’s
solidarity-oriented initiatives in regions
covered by Crédit Mutuel Bretagne, Crédit
Mutuel Massif Central and Crédit Mutuel
22 THE MUTUAL BANK
Sud-Ouest. With an annual budget of around
€2 million, Ark’ensol works at every level,
from local to international, either through
partnerships (with Fondation du Crédit
Mutuel, ADIE and a number of local nonprofits) or through one of two specialised
sub-associations operating under its banner.
The first, Ark’ensol Créavenir, helps support
investment through assistance with the
start-up or buyout of small companies.
In 2012, it helped with 345 such investments, for a total amount of €1.4 million,
of which €470,000 in the form of donations.
These efforts helped create or maintain
600 jobs.
The second specialised sub-association,
Ark’ensol Entraide, provides personal
micro-loans and assistance to borrowers in
difficulty. It allowed nearly 300 people to
obtain loans, in most cases to facilitate their
return to the workforce by helping them
finance means of transport. Members who
are having difficulty repaying loans due to
unforeseen circumstances can also receive
assistance, with Ark’ensol Entraide covering
up to 75% of remaining instalments for up
to 12 consecutive months.
Operational since 2006 in Lille, Caisse
Solidaire du Crédit Mutuel Nord Europe
was created to enable people to re-enter the
banking system after being excluded from
it, and to provide basic financial services to
people with little money or who are encountering temporary difficulties due to their
professional situation or to health or other
problems.
It grants micro-loans of €300 to €3,000,
repayable over 6 to 36 months at market rates.
CMNE is also very active with social initiatives.
Its efforts to fight exclusion due to disability,
illness, social or economic factors through
“mutualist initiatives”, sustained for more
than ten years now, represent one of the
three primary objectives of the Corporate
Foundation created by the group at the end
of 2012.
Two solutions are available to them: solidarity
loans, offered to members by the local mutual
banks, and social micro-credit, offered in
partnership with organisations specialising
in solidarity and reintegration.
Their primary aim is to support those who
have plans to get back on their feet, regardless
of whether they are members.
Since its creation, some 400 people, half of
them members, have benefited from Crédit
Mutuel Solidaire.
At the end of 2007, Crédit Mutuel MaineAnjou Basse-Normandie set up Crédit
Mutuel Solidaire (CMS), which works to
prevent exclusion from the banking system
and help those who find themselves in
this situation, usually due to changes in
Working with Crédit Mutuel Solidaire, the
Nantes federation set up a special structure
in 2012 to optimise the management of its
micro-lending activities and efforts to help
members in difficulty. In most cases, these
activities aim to help people get back into
their employment and/or family situations,
regain access to mainstream financial and
banking services.
the workforce. Without doing the work of
social services, the group is striving to come
up with solutions, tapping the brain power
of directors and employees. Most of the
initiatives this entity proposes relate to
employment.
A SOCIALLY SUPPORTIVE BANK
Crédit Mutuel supports and promotes initiatives by its members and customers
in favour of social cohesion, solidarity and the environment.
It offers products with social and environmental added-value based on the new
concept of solidarity-oriented savings solutions, loans for environmentally
beneficial projects and socially responsible investment products distributed by
CM-CIC Asset Management, Federal Finance (a Crédit Mutuel Arkéa company)
and La Française (part of Crédit Mutuel Nord Europe). Total SRI assets
managed by these three companies have risen to more than €6 billion,
from €4.5 billion in 2011.
For more information, see the annual report on corporate social responsibility (CSR)
available at www.creditmutuel.com.
PROFILE
A DYNAMIC GROUP
STAYING ON COURSE AND CONSOLIDATING
ITS EFFICIENT BUSINESS MODEL
24 CREDIT MUTUEL GROUP
Annual Report 2012
25
GROUP PROFILE
CRÉDIT MUTUEL
BUSINESS PROFILE
WWW.CREDITMUTUEL.COM
CRÉDIT MUTUEL GROUP
2012 KEY FIGURES
The Crédit Mutuel group, one of France’s leading bankinsurers, comprises
the Crédit Mutuel branch network and all the bank’s subsidiaries.
Backed by a staff more than 100,000 strong, comprising 79,000 employees
and 24,000 directors, the group offers a comprehensive range of financial expertise
to more than 30 million customers, including 28 million retail customers.
Its overriding priority, and the key to its development, is the quality of both
its customer and member relationships and the services it provides.
A SOLID GROUP THAT IS EXPANDING
AND GROWING STRONGER
PUTS EVERYONE’S
SKILLS TO USE
Its strategy is one of controlled growth based
on local retail banking, bankinsurance
and technological excellence.
The group focuses on closeness to the customer,
combining the strengths of Crédit Mutuel a cooperative, mutual bank with extensive
regional and local ties - with those of CIC,
a commercial bank.
Combined with Targobank and Cofidis, Crédit Mutuel and CIC - the group’s
two leading brands - have a network of almost 6,000 points of sale.
Crédit Mutuel is composed of local mutual banks organised into 18 regional federations,
which in turn form the Confédération Nationale du Crédit Mutuel, the central body
that heads the network.
CIC operates a branch network in the Paris region and is the holding company for
a group of five regional divisions, along with subsidiaries specialised in all areas
of finance and insurance.
A RETAIL BANK
WITH A LOCAL FOCUS
Crédit Mutuel offers a comprehensive range
of financial services to customers comprising
private individuals, locally-based professionals
and companies of all sizes. It has a 15%
share of the French deposit market and
17.1% of the bank-distributed loan market.
It is France’s number one non-life bankinsurer.
Its insurance subsidiaries manage more
than 31 million savings, auto, home, health,
personal protection and retirement policies
on behalf of 12 million-plus policyholders.
The group is a major player in the home
loans market and number four in Europe
for consumer credit. It is the country’s
biggest bank for non-profit associations,
the second-largest for farmers and banker
to one out of every three self-employed
professionals.
Net banking income: €14.6 billion
Net profit: €2,217 million
Net profit, group share:
€2,150 million
Shareholders’ equity, group share:
€37,380 million
Core Tier 1 ratio: 14.5%
5,961 points of sale*
79,060 employees
30.1 million customers
€640 billion in customer deposits
€343.2 billion in loans outstanding
A leading retail
bankinsurance player
in France
17.1% market share in bank loans
15% market share in deposits
No. 1 bankinsurer
in non-life insurance
No. 1 bank for non-profit
associations and works councils
No. 2 bank in electronic banking
No. 2 bank for the farming sector
No. 3 bank for housing loans
No. 3 bank for SMEs
No. 4 in Europe for consumer credi
A top-grade issuer
A+
A+
Aa3
Standard & Poor's
with a negative
outlook for
Crédit Mutuel group
Fitch
with a stable outlook**
Moody's
with a negative
outlook**
* of which 5,362 in France
** for CM11-CIC
26 CREDIT MUTUEL GROUP
Annual Report 2012
27
GROUP PROFILE
2012:
A EUROPEAN BASE
CRÉDIT MUTUEL
GROUP:
INTERNATIONAL
SITES AND
PARTNERSHIPS
(2012)
United Kingdom
CRÉDIT MUTUEL GROUP
RETAIL BANK SERVING ALL CUSTOMER
CATEGORIES AND CATCHMENTS
Germany
Belgium
OBK BANK
Czech
Republic
Lux.
N
Slovakia
rica
Ame
th
or
Local mutual
banks
Regional
federations
National
bodies
THE DRIVING FORCE
behind the group’s
commitment and
responsiveness
THE
ORGANISATIONAL
FRAMEWORK
of the business
REPRESENTATION
of members’ and
customers’ interests
France
Switzerland
Hungary
Canada
I
THE HEART OF THE SYSTEM
The mutual bank
Italy
New York
18 regional
federations,
The final link in
the chain,
which coordinate
business within their
respective jurisdictions.
two national bodies
that represent and
defend the group’s
interests.
Spain
Banking and
finance
subsidiaries
Insurance
subsidiaries
Technology
subsidiaries
Real estate
subsidiaries
BANQUE DE TUNISIE
A GROUP WITH
A DIFFERENCE
serving all its customers
and supporting businesses
and jobs.
Morocco
Tunisia
Groupe Cofidis Participations
LEADING THE WAY IN BANKING
TECHNOLOGY
Customers of the branch network benefit
from a comprehensive multi-channel banking
offer based on cutting-edge technology.
In 2012, its remote banking service clocked
up more than a billion contacts, nearly half
of them online. Crédit Mutuel’s mobile
telephony activity, marketed under the NRJ
Mobile, Crédit Mutuel Mobile and CIC Mobile
brands, provides a new channel for bankinsurance and services and constitutes a new
approach to payment instruments that has
attracted more than a million customers. The
bank maintained its number two position in
France in electronic payments, with a nearly
19.8% share of the overall market, and its
number one position for transactions in
28 CREDIT MUTUEL GROUP
France with affiliated retailers, with a market
share of more than 25%. Crédit Mutuel’s
complementary and competitive offer ensures
it has coverage of all market segments,
from the integrated distribution majors and
franchise networks to independent retailers.
THE LEADING FRENCH BANK
In 2012, the group continued to boost its
financial solidity, with Core Tier 1 Equity
reaching €28 billion. Core Tier 1 solvency
ended the year at 14.5% (CRD3/Basel
2.5 standards), making the group the leading
French bank in this area and among the
best in Europe. All of this allows Crédit
Mutuel to await future European regulations
serenely, without envisaging any business
disposals.
In a context of all-round ratings downgrades
for banks in Europe, those of Crédit Mutuel
were among the best in France with an A+
rating and negative outlook from Standard
& Poor’s, an A+ rating and stable outlook for
CM11 and subsidiaries from Fitch and an
Aa3 rating, outlook negative, from Moody’s.
The negative outlooks assigned by Standard
& Poor’s and Moody’s are a reflection of
the economic climate in France and the
downgrade to the country’s credit rating.
5,961 points of sale
79,000 employees
30.1 customers
BEST FRENCH BANK
in 2012 and top ranking
in France among world’s
safest banks*
ona
l
nt
I
An
t
Local mutual banks,
of which there are 2,116.
At Crédit Mutuel, decisions
are taken as close as
possible to ground level.
Asia
Portugal
s-Guyana
ille
ernationa
nt
l
*
*Rankings by international
financial news magazine
Global Finance
and OBK Bank, and the acquisition of
Spain’s Agrupació Mútua by Assurances du
Crédit Mutuel, paving the way for further
expansion in Spain and allowing Targobank
Spain and RACC Seguros to offer a comprehensive range of insurance products. With
enhanced solidity and controlled growth,
the group is actively serving the real economy
and its more than 30 million customers,
affirming its role as a major banking force
in France and Europe.
CONTINUED EXPANSION
The group consolidated its existing operations
abroad in 2012 and made further acquisitions.
Its business grew through the integration,
via Crédit Mutuel Nord Europe, of Citibank
Belgium (442,000 customers and 34 branches)
Annual Report 2012
29
GROUP PROFILE
A YEAR INSIDE
CRÉDIT MUTUEL GROUP
September 2011
& National advertising campaign on
November
Targobank in Spain
(123 branches, more than 500 employees).
With more than €2 billion of assets and
over €276 million in shareholders’ capital,
the bank has restated its intention to
expand and be a part of efforts to
restructure the Spanish banking system.
& UFG-LFP becomes La Française AM
Desjardins sign a global cooperation
agreement in the context of their
international development strategy,
resulting in increased business in
electronic banking and private banking.
By optimising investments, it will allow
them to enhance their respective service
offers to benefit their members and
customers.
& NRJ Mobile tops the one million
customer mark, a commercial milestone
that establishes mobile telephony as a fully
fledged complementary business line
for the bank.
& Crédit Mutuel Arkéa announces
the creation of Arkéa Capital Partenaire,
a private equity company set up to make
equity investments in large companies.
& Training: inauguration of the Verrières
le Buisson centre With 22 training rooms,
120 bedrooms with internet access,
a 550-person dining room and a 300-seat
lecture hall, the centre, situated on a
six-hectare site, holds its first work sessions.
30 CREDIT MUTUEL GROUP
partnering for the first time in 2012 with
two new major events: les Vieilles Charrues
in Carhaix (CMB) and les Déferlantes in
Argèles-sur-Mer (CM11). For Crédit
Mutuel, participating in these musical
events, and many others – starting in April,
with Le Printemps de Bourges, and
throughout the year with Les Francofolies
de La Rochelle, Main Square Festival in
Arras, Beauregard in Hérouville, Musilac
in Aix-les-Bains, la Fiesta des Suds and,
of course, la Fête de la Musique, of which
it has been the official partner since 2008 –
is another way to contribute to the vitality
of the areas in which it operates.
& CM-CIC Factor formed through the
merger of FactoCIC and CM-CIC Laviolette
Financement, giving rise to a newlystrengthened, all-around expertise centre.
February
& Cooperation with Desjardins:
First representative office inaugurated
in Paris Housed in the offices of CIC,
it serves as a contact point between
Desjardins’ clientele of Canadian
companies working with France and
European firms working with Canada.
partnership with NRJ Mobile
This is a strategic diversification involving
offering a range of contract-only mobile
deals to the 3.5 million Cofidis customers
in France.
December
&
Crédit Mutuel named French Bank
of the Year for the second year in
a row by the Financial Times group
economic and financial magazine,
The Banker.
& CMNE announces the takeover of
&
du Crédit Mutuel Correspondents
from the regional groups, teachers,
education specialists, booksellers,
library representatives and people
involved in local initiatives celebrated
this anniversary in Paris. Since 1992,
these individuals have brought to life
more than 1,500 initiatives aimed at
attracting everyone, especially the very
young and most underprivileged,
to all forms of reading.
& Crédit Mutuel group the only French
bank to have its rating confirmed by
Moody’s The agency confirmed its
Aa3 long-term rating on BFCM, CIC
and Crédit Mutuel Arkéa, citing
“the strength of the broader Crédit Mutuel
group.” This is one of the highest
ratings for banks in Europe.
The confirmation notably reflected
the adequate capital base and strong
domestic franchise. The group was
thus an exception at a time when
the agency was downgrading banking
institutions one after the other, as part
of its general review of more than 100
European banks begun in February
and completed in June.
Remote surveillance: EPS reaffirms
its leadership in France with 30%
market share.
Crédit Mutuel group named
best French bank by Global Finance
magazine.
April
all Citibank Belgium’s retail banking
& Crédit Mutuel participates for the
first time in a trade show for seniors,
activities, mainly geared to deposits,
consumer credit and credit cards.
reflecting its approach based on specific
categories of needs.
This acquisition gives the Lille-based group,
which was already active in Belgium
through BKCP bank (42 branches),
& CIC Iberbanco opens its 17th retail branch
in Seine-et-Marne. Working with retail
200 new points of sale in Belgium.
customers, non-profit organisations,
self-employed individuals, companies and
& BFCM downgraded by Fitch The agency
lowered its long-term debt ratings on
real-estate professionals, this subsidiary
Banque Fédérative du Crédit Mutuel
helps those living in France finance assets
(BFCM) by one notch, to A+. Fitch now has
in Spain and Portugal.
A+ ratings on all of the large French banks.
This is still a high-quality rating in an
exceptional environment.
It is the first time BFCM’s rating has been
downgraded since the financial crisis broke & CM-CIC Services (CCS) continues to
expand its different businesses. Serving
out in 2008. Its resilience is a reflection of
the 12 federations (CM11 and Crédit
the bank’s sound financial fundamentals.
Mutuel Océan) and the regional CIC banks,
CCS sets new targets, including improved
service quality, standardisation of internal
May
&
CM-CIC AM back on the podium,
winning two key awards during the
16 annual La Tribune-Europerformance
mutual fund awards: First prize in the
Banks category and first prize in the
Euro Medium-Term Bond category.
July/August
& Haiti: The first phase of the housing
programme is inaugurated Nearly two
and a half years after the earthquake,
the first phase of the reconstruction
programme, mainly involving the
construction of housing for the families
of employees from the French hospital
in Port-au-Prince, is inaugurated
by the Chairman of Confédération
Nationale du Crédit Mutuel, Michel
Lucas, with representatives of Haiti
and the main project players in
attendance. Two other phases will
follow, with a total of 154 housing
units scheduled to be built.
th
&
CIC Iberbanco voted “Company
of the Year” This award recognises
innovative and widely-known
international companies that are
investing in France while creating
a positive and representative image
in Spain.
& Insurance: Crédit Mutuel expands
in Spain The acquisition by Assurances
du Crédit Mutuel (ACM) of Spain’s
Agrupació Mútua will allow the
environment French banks are
operating in, including the public debt
burden, persistent high unemployment
and reduced external competitiveness.
Its analysis regarding the ratings
revisions on French banks due to
France’s “economic risks” score
impacts the long-term ratings of the
main French banks, which are either
downgraded or placed on negative
outlook. Crédit Mutuel’s long-term
A rating is confirmed, but the outlook
is revised from stable to negative,
as is the case for eight other banks,
including BPCE, Crédit Agricole,
La Banque Postale and Société Générale.
This revised outlook does not in any
way signify lower scores on the criteria
specific to Crédit Mutuel that are
factored into the rating: retail franchise
and business positions, risk positions,
liquidity and funding. The agency notes
the improvement in the structural
funding and liquidity positions
since 2011.
& 20 years of reading with Fondation
June
March
&
insurance offers of RACC Seguros and
ACM Agrupació Mútua to be made
available through all four networks
in Spain: Royal Automobile Club of
Catalonia, Targobank, Cofidis and
now Agrupació. At the same time,
Agrupació Mútua’s health insurance
products will also be distributed
through the networks. A total of 2.4
million customers will thus have access
to a broader offering through the
four networks in Spain.
& Crédit Mutuel sets the tone for festivals,
With effect from 1 January, 2012,
Crédit Mutuel Anjou joins CM10-CIC,
making it CM11-CIC.
& Cofidis launches Cofidis mobile in
October
& Crédit Mutuel and Mouvement
& CM11: Greater convergence
& Crédit Mutuel and Banco Popular launch
the main French television channels
(Asset Management) Two and a half years
after the merger between Union Française
de Gestion (UFG) and La Française des
Placements, UFG-LFP, a subsidiary of
Crédit Mutuel Nord Europe, changes
its name in order to adopt a more
recognisable and memorable brand
that reflects the group’s positioning
and ambitions.
practices, increased skills and polyvalence
and a reduction in production costs.
January 2012
September
&
November
& Foncière des Murs, Crédit Agricole
Assurances and Assurances du Crédit
Mutuel announce the acquisition
of 165 B&B hotels The move is in
keeping with Assurances du Crédit
Mutuel’s strategy of diversifying in
a buoyant sector.
& Crédit Mutuel back on television,
promoting the idea that: “A bank
that is owned by its members and
customers – that changes everything.”
December
& National consumer credit database:
Crédit Mutuel supports the creation
of a new tool strictly to prevent
excessive debt and proposes that a
streamlined version be introduced
rapidly, one that is managed online
and thus responsive and always
up-to-date.
Global Finance names the
world’s safest banks in 2012,
giving Crédit Mutuel the highest
score for a French bank.
October
& Standard & Poor’s confirms Crédit
Mutuel’s long-term rating, revising
outlook from stable to negative.
The agency cited the more challenging
&
2012 Argus de l’assurance/
OpinionWay 2012 survey:
Crédit Mutuel earns highest
overall score.
Annual Report 2012
31
DEVELOPMENT
2012 RESULTS
BUSINESS MOMENTUM
AND ENHANCED SOLIDI TY
32 CREDIT MUTUEL GROUP
Annual Report 2012
33
2012 RESULTS
CONTINUED DEVELOPMENT
AND GREATER SOLIDITY
Crédit Mutuel Group remained committed to participating in France’s economic
expansion in 2012.
With strong business momentum behind it, the group strengthened its fundamentals
and achieved a balanced mix of growth, efficiency and risk control. Its profits were stable,
and its financial solidity was reinforced.
Net profit, group share, ended the year at €2,150 million and overall net profit at
€2,217 million, unchanged from 2011.
FINANCIAL
STRUCTURE
(In € billions)
+1.3 point
14.5%
13.2%
38.4
34.3
The main data for 2012 confirm the solidity of Crédit Mutuel’s business model and
the active involvement of its 24,000 elected directors and 79,000 employees.
They are also a testament to the high-quality service provided to its members
and customers and the vitality of its networks in France and abroad.
These performances earned the group wide recognition. Crédit Mutuel was named best
French bank by Global Finance magazine, a leading international source for financial
news, which also gave it the top ranking in France among the world’s safest banks
and rated in No. 38 worldwide (rankings published in March 2013).
STRENGTH THROUGH
FINANCIAL SOLIDITY
WITH A SOLVENCY RATIO OF 14.5% AND
A 12% RISE IN SHAREHOLDERS’ EQUITY,
CRÉDIT MUTUEL GROUP IS INDEED THE
LEADING FRENCH BANK
+11.8%
Crédit Mutuel obtained the highest overall score in the Argus de l’assurance/OpinionWay
survey, a testament to its enhanced image and attractiveness.
37.4 +12%
33.4*
ONGOING EXPANSION AND
SHARING OF TOOLS
2011
2012
Shareholders’ equity*
of which, group share
Core Tier 1 ratio
* restated
A locally-focused bank, Crédit Mutuel added
branches to its regional network on the
basis of demographic and growth potential:
it now has 5,961 points of sale, of which
5,362 in France.
As the network has expanded, there has
been greater sharing of tools between the
regional groups.
Crédit Mutuel Anjou joined Caisse Fédérale
du Crédit Mutuel on 1 January 2012, turning
“CM10” into “CM11”. Work also continued
on the operational setup of CM-CIC Services,
the group’s future logistics and production
provider.
These changes will help the banks benefit
from the diversity of the group’s businesses,
making them more competitive and
optimising the product and service quality
delivered to members and customers.
34 CREDIT MUTUEL GROUP
The group’s business grew through:
– the integration, via Crédit Mutuel Nord
Europe, of Citibank Belgium (442,000
customers and 34 branches) and OBK Bank;
– the acquisition of Spain’s Agrupació Mútua
by Assurances du Crédit Mutuel, paving the
way for further expansion in the Spanish
market and allowing Targobank Spain and
RACC Seguros to offer a comprehensive
range of insurance products.
A SOLID AND STILL
HIGHLY-RATED BANK
As a cooperative bank, Crédit Mutuel uses
all its profits to consolidate shareholders’
equity and pay dividends on its shares. In 2012,
the group further strengthened its financial
position: Core Tier 1 Equity reached €28 billion,
and Core Tier 1 solvency ended the year at
14.5% (CRD3/Basel 2.5 standards), making
the group the leading French bank in this
area and among the best in Europe.
All of this allows the group to await future
European regulations serenely, without
envisaging any business disposals. In a context
of all-round ratings downgrades for European
banks, Crédit Mutuel’s ratings are among
the highest in France: A+, outlook negative
from Standard & Poor’s, A+, outlook stable
from Fitch (for CM11 and subsidiaries)
and Aa3, outlook negative from Moody’s.
The negative outlooks assigned by Standard
& Poor’s and Moody’s are a reflection of
the economic climate in France and the
downgrade to the country’s credit rating.
CONFIRMATION OF BUSINESS
MOMENTUM AND SUPPORT FOR
THE ECONOMY
With deep local roots in mainland France
and the overseas territories, Crédit Mutuel
is demonstrating resilience and continues
to promote its distinguishing strengths,
working closely with members and customers
and especially SMEs and microbusinesses:
it has invested in Alsace via “Alsace Croissance”,
and in April 2012, Crédit Mutuel Arkéa
signed a contract with the EIB for the
financing of SME projects. Business trends
2012 RESULTS
BUSINESS CUSTOMERS:
CRÉDIT MUTUEL GROUP A POPULAR CHOICE!
When businesses rate their banks based on the financing, support,
responsiveness, treasury management services and value-for-money
they offer, Crédit Mutuel group stands apart with the best ratings
assigned by entrepreneurs.
“Half of the companies surveyed gave it a score of 7 and 8 and more than
12% a 9 and 10. In terms of appreciation, this places the group head and
shoulders above the competition.”
Option Finance - 29 April 2013
BE A REAL PARTNER TO COMPANIES AND PLAY
AN ACTIVE ROLE IN THEIR DEVELOPMENT –
THIS IS OUR GOAL
HIGH-PERFORMANCE SOLUTIONS,
SOLID COMMITMENTS AND A
RECOGNISED MODEL –
THAT’S WHAT MAKES THE
DIFFERENCE
were satisfactory at all levels of the group
in 2012, for the networks and diversified
activities.
Rise in savings deposits
Crédit Mutuel’s total savings deposits rose
by 9.5% during the year, to €640 billion.
Customers deposits(1) (€274.3 billion) increased
by 9.2%, with the strong momentum of
2011 having carried over. This growth was
driven chiefly by regulated savings accounts
(up 15.2% to €95.4 billion) and term accounts (up 6.9% to €62.1 billion). Where the
former are concerned, livret bleu/livret A
(€34.9 billion) and LDD (sustainable development, €13.1 billion) accounts recorded
gains of 17.0% and 45.4%, respectively, after
their ceilings were raised. It should be recalled that 65% of funds in these accounts,
as well as those in livret d’épargne populaire
accounts, are centralised with CDC. The
French networks’ share of the deposits market reached 15.0% (+0.2 point). Insurancelinked savings (€101.5 billion) saw further
growth (+3.8%). Securities accounts
(€264.3 billion, up 12.3%) benefited from
buoyant financial markets and favourable
business trends in mutual funds.
Global Finance annual ranking of THE WORLD’S
SAFEST BANKS: CRÉDIT MUTUEL LEADING THE WAY
IN FRANCE
The rankings changed considerably between 2011
and 2012, with banks’ credit ratings having been
downgraded one after the other. With the exception
of Crédit Mutuel and La Banque Postale, which moved
up in 2012, all French banks finished lower in the ranking,
or were left out altogether.
Crédit Mutuel group, represented by BFCM, ranked
36th, the highest score for a French bank. La Banque
Postale was included for the first time, and went straight
to 43rd4 place.
Save for the No. 65 ranking, which went to CDC, most
of the ten safest banks were from Northern Europe –
Germany, the Netherlands, Sweden or Luxembourg.
CRÉDIT MUTUEL GROUP, represented by BFCM,
NAMED BEST FRENCH BANK BY GLOBAL FINANCE
MAGAZINE, a leading international financial news
source. The banks recognised were those that “met the
needs of their customers in an uncertain economic
environment, while achieving the best results and
consolidating their fundamentals.”
2012 ARGUS DE L’ASSURANCE/OPINIONWAY
SURVEY: CRÉDIT MUTUEL FINISHES FIRST IN
GENERAL RANKING. Crédit Mutuel was assigned
the highest overall score in the Argus de l’assurance/
OpinionWay survey (4th wave), beating out La Banque
Postale and La Maif. It moved up three slots from
the previous year, reflecting its improved brand image
(confidence, financial solidity and customer focus) and
enhanced attractiveness.
(1) Excluding SFEF.
36 CREDIT MUTUEL GROUP
Annual Report 2012
37
2012 RESULTS
30.1 MILLION CUSTOMERS INCLUDING
12.4 MILLION INSURANCE POLICYHOLDERS
WITH 31.2 MILLION CONTRACTS
SUPPORTING OUR RETAIL AND BUSINESS
CUSTOMERS EVERY STEP OF THE WAY –
RETAIL BANKING AND INSURANCE
NET BANKING INCOME
In € millions
RETAIL BANKING
INSURANCE
THAT’S OUR CORPORATE DYNAMIC
11,686 11,201
1,873
1,347
funding, translating into an extension of
more or less stable (+0.3%) in spite of a
available resources.
challenging economic climate, the retail
banking activities having been hurt by the
2011
2012
2011
2012
INSURANCE, CRÉDIT MUTUEL’S
SECOND-BIGGEST BUSINESS
In € billions
NON-LIFE
PREMIUM
INCOME
LIFE INSURANCE
PREMIUM INCOME
TOTAL
PREMIUM INCOME
12.0
8.0
4.0
11.8
7.6
4.2
Insurance, Crédit Mutuel’s
second-biggest business
cost of deposits, particularly for regulated
The group’s insurance subsidiaries manage
reflecting the group’s efforts to extend
a total of 31.2 million policies (of which
its available resources. At the same time,
26.6 million non-life and 4.6 million life) for
the insurance businesses benefited from the
12.4 million policyholders. They generated
upswing in financial markets.
savings accounts, and by refinancing costs,
total premium income of €11.8 billion.
The life insurance business was affected by
Bankinsurance accounted for almost 86%
the general climate (economic crisis,
of NBI (73.4% retail banking and 12.3%
competition from livret A and LDD regulated
insurance).
savings accounts, uncertainty about taxation),
Operating expenses rose 6.9%, driven higher
such that premium income contracted
by exceptional factors relating to changes in
by 4.6% to €7.6 billion. Risk insurance
the consolidation scope and tax and labour
continued to grow with a 4.6% rise in
regulations during the year. Without these
premium income to €4.2 billion, and trends
changes, operating expenses would have
in the auto and home segments also
only risen by 2.9%.
remained positive (gains of 8% and 9.5%,
2011
2012
2011
2012
2011
2012
respectively). Personal insurance premium
Taking into account the aforementioned
income ended the year up 2.2%, a reflection
restatements and respective trends in NBI
of efforts made by the networks to promote
and operating expenses, the cost-to-income
health and personal protection policies.
ratio improved (-0.1 pt) to 63.8%, proof that
Results at the insurance businesses are a
the group is keeping operating expenses
Lending focused on business and retail
customers
prices. Short-term business credits were less
further testament to the strength of the
under control. Cost of risk declined by 24.7%
in demand (-12.4%). All in all, the group
bankinsurance model the group adopted
to €1,254 million. However, stripping out
The rise in lending (€343.2 billion) under-
ended the year with a 17.1% share of the
more than 40 years ago.
the impact of Greek securities and changes
scored the group’s active support of the
bank-distributed loans market in France.
economy (+€4.9 billion). Notable increases
in the consolidation scope, cost of risk
A satisfactory year
increased by 6%. Cost of risk – incurred risks
was nonetheless unchanged.
were seen in equipment loans (+5.6%) and
An improved funding structure
All of the group’s divisions helped make 2012
lease outstandings (+4.4%). Consumer credit
The loan-to-deposit ratio improved sharply
a year of satisfactory results. Net banking
outstandings rose 5.2% and a €1.1 billion
(to 125% from 151% five years earlier),
income rose 4.4% to €14.6 billion, notably
Net profit, group share, amounted to
gain was recorded in housing loan outstand-
making the group less dependent on markets
on the back of more buoyant financial markets
€2,150 million (and overall net profit to
ings, in spite of the economic slowdown and
for refinancing. Moreover, a better balance
and contributions from the insurance
€2,217 million), with bankinsurance account-
higher unemployment rates and home
was achieved between short- and long-term
subsidiaries. NBI for bankinsurance(2) was
ing for the lion’s share of this total.
(2) Bankinsurance: retail banking + insurance
38 CREDIT MUTUEL GROUP
Annual Report 2012
39
2012 RESULTS
COST OF RISK
€ millions
DELIVERING CUTTING-EDGE
TECHNOLOGY
Crédit Mutuel’s mobile telephony activity
– conducted through the NRJ Mobile, Crédit
Mutuel Mobile and CIC Mobile brands –
provides a new channel for bankinsurance
and services and a new approach to payment instruments.
The offers are marketed through the Crédit
Mutuel and CIC networks and various other
channels, including major retailers, specialised networks and local outlets, direct
online sales through nrjmobile.fr and web
merchants.
In 2012, net subscriber growth remained
positive, with the active customer base
growing to 1.1 million, notably thanks to an
expanded range of offers. The group completed its set-up as a fully-qualified mobile
virtual network operator (MVNO), meaning
it now has integrated telecom operator
architecture (excluding transmitters).
CONSTANTLY INNOVATING
TO BE THE LOCAL BANK FOR ALL THAT’S OUR GOAL.
COST OF RISK –
INCURRED RISKS
Various offers were introduced in this same
spirit of keeping up with the demands of
members and customers. Lastly, El Telecom,
the group’s telephony subsidiary, continues
to play a central role in the development of
contactless payments and services, and was
very involved in the launch of Cityzi in
Strasbourg.
Crédit Mutuel subsidiary EPS is the leader
in remote surveillance in France with
30% market share and 283,000 subscribers.
It delivers innovative products that suit the
needs of residential and business customers
alike.
In elec tronic payments, the group
confirmed its ranking as the number two
player in France with almost 20% of the
overall market. It strengthened its leading
position in affiliated retailer transactions in
France, handling 2 billion transactions
worth €92.4 billion, or 25.2% of the market.
Crédit Mutuel’s complementary and competitive offer ensures it has coverage of
all market segments in this area, from
the integrated distribution majors and
franchise networks to independent retailers.
With 9.2 million cards in issue, Crédit Mutuel
ranks second in the bank cards market,
and is the market leader for public sector
purchasing cards. It is staying on the cutting
edge of contactless payments using cards
and mobile phones.
The Crédit Mutuel group is confident in
its ability to tackle the economic, social,
technological, competitive and regulatory
challenges that may arise in 2013.
Its priority is to continue to expand,
constantly adapting to assure the same level
of service quality, while preserving its identity
and never compromising on its core values.
-1,685
COST OF RISK –
INCURRED RISKS
EXCLUDING
EXCEPTIONAL
ITEMS
GENERAL
PROVISION
TOTAL
-1,665
-24.7%
-28.5%
-1,205
TOTAL EXCLUDING
EXCEPTIONAL
ITEMS
6%
-1,254
-1,161 -1,161
-1,141 -1,210
-49
+20
2011
2012
2011
2012
2012
2011
2012
2011
2012
2011
OPERATING EXPENSES
In € millions, excluding exceptional effects
9,042
9,302
639
650
3,143
3,180
5,472
5,260
(%)
17.1
17.1
14.8
15
2011
2012
Depreciation
and amortisation
Other operating expenses
Personnel expenses
Loans
Deposits
2012
2011
MARKET SHARE
IN FRANCE
OUTSTANDING LOANS
DEPOSITS
(in € billions)
(in € billions)
338.3
9
28.9
343.2
10.2
25.3
33.9
35.7
59.5
62.8
179.3
180.4
640.0
584.3
274.3
251.2
101.5
40 CREDIT MUTUEL GROUP
10.1
12.9
4.7
10.6
13.1
5.1
2011
2012
97.7
Current accounts
Treasury facilities
Consumer credit and revolving loans
Equipment loans
Home loans
Leasing and related
Other
Net non-performing loans
235.4
2011
264.2
Customer deposits (excluding SFEF)
Insurance-linked savings
Securities
2012
Annual Report 2012
41
BANKINSURANCE
OUR CORE BU SINESS
HAVING GOALS FOR OUR
MEMBERS AND CUSTOM ERS
42 CREDIT MUTUEL GROUP
MICHEL LUCAS
Annual Report 2012
43
BANKINSURANCE
BANKINSURANCE
SERVICES AND SOLUTIONS
Bankinsurance, the group’s core business, comprises its retail banking
and life and non-life insurance activities.
The group assists its customers in all their projects, providing solutions
in the areas of investment and borrowing, electronic payments and technology,
insurance and savings, real estate, personal services and wealth management.
One of France’s biggest retail banks and its leading non-life bankinsurer,
the Crédit Mutuel group has 30.1 million customers (28 million retail customers),
including 12.4 million who subscribe to its life and non-life insurance products.
It was to better address these customers’ needs that some 40 years ago Crédit
Mutuel developed bankinsurance activities, i.e. the sale of insurance products
through its bank branches, and it was this same responsiveness that led it
to become the leader in remote home surveillance, with a 30% market share.
As a local bank with nearly 6,000 branches and over 9,000 ATMs, the group has
increased its geographic coverage with an appropriate balance between branch
networks and remote banking technology. It thus offers a truly local banking service
backed up by state-of-the-art, multi-channel technology: remote banking services
alone have now recorded over a billion contacts. Remote banking has created a new
kind of relationship between people and their banks, especially as mobile banking
gathers momentum.
The group is a leader in breakthrough areas such as mobile telephony, which
is a major strategic development priority within the context of Europe’s emerging
pay-by-mobile market.
BEING A CUSTOMER
OF A DIFFERENT KIND OF BANK,
THAT CHANGES EVERYTHING.
CRÉDIT MUTUEL GROUP KEY FIGURES
FOR BANKINSURANCE IN 2012
28 retail customers
out of a total of 30 million
31.2 insurance contracts and
12.4 policyholders
Over 1 billion emote banking contacts.
1.1 million mobile telephony
subscribers
30% share of remote home
surveillance market
5,961 points of sale
9,000 ATMs
Good customer relationships are the key to successful development, and in 2012
Crédit Mutuel was once again rewarded for its quality and efficiency in this area.
44 CREDIT MUTUEL GROUP
Annual Report 2012
45
BANKINSURANCE
KEY FIGURES FOR
RETAIL BANKING
In € millions
Net banking income: 11,201
Gross operating profit: 3,370
Net profit, group share: 1,396
RETAIL BANKING,
THE GROUP’S MAIN BUSINESS
Retail banking, the group’s main business, encompasses the offers of Crédit
Mutuel’s 18 regional federations and CIC’s five regional divisions. It also covers
the specialised products and services marketed through the network, notably
leasing, factoring, fund management and real estate.
Retail banking generated net banking
income of €11,201 million in 2012 (73.4% of
the group total) and €1,396 million of net
profit, group share (65% of the group total).
As the day-to-day banking partner of
28 million retail customers, Crédit Mutuel
has a 15% share of the market for deposits
and a 17.1% share of the bank loans market.
The financial crisis spread to the real economy
in 2012. European countries entered a recessionary spiral, directly related to their austerity
policies.
In France, persistent economic difficulties
and greater tax burdens led many households
to tap into their savings and limit their
borrowing.
SAVINGS , LOANS, INSURANCE,
MOBILE TELEPHONY:
WELCOME TO A BANK WITH
In this environment of persistent economic
constraints, the group continued to provide
solid support to all of its customers,
relying on its core products and services:
deposit facilities and regulated savings
accounts.
The group supported growing companies
across the economic spectrum, posting a
further increase in outstanding loans, and
was particularly active in its lending to businesses notably via medium-term equipment
loans designed to support growth.
It also continued to develop new products
and services designed to make life easier
for the group’s members and customers,
such as in mobile telephony, where it
pressed ahead with the roll-out of its offer
within the context of Europe’s emerging
pay-by-mobile market.
Crédit Mutuel continued to diversify its
offer so as to meet all the needs – from
the simplest to the most sophisticated –
of its retail customers and, more generally,
of its various customer segments, i.e. young
people, who constitute one of its priority
areas of development, and seniors, with a
special focus on key phases of their lives,
as well as non-profit associations, farmers,
self-employed professionals and microbusinesses and SMEs.
The group has made specialised online
banking tools available to its customers,
such as Monabanq and Fortuneo.
For the more financially marginalised
members of its customer base, Crédit Mutuel
offers a full range of services for withdrawing
cash and making payments in all circumstances. Since mid-2010, in line with industry
commitments, these have included payment
incident fee ceilings and real-time account
balance alerts.
Despite the downturn in the housing market,
Crédit Mutuel focused on funding customers’
primary residences, particularly for the less
well-off. In a market that was rebalancing,
due to changes to subsidised housing
schemes (interest-free loans restricted
to new housing, which cut the number of
subsidised loans in France by 75%) and
ever-high prices that triggered a 25%
decline in transactions, the group is more
concerned about consolidating its customer
base than increasing its share of the home
loan market. Today, its development is
being fuelled by new services and other
drivers of growth.
POINTS OF SALE
en nombre
5,961
5,943
2012
2011
EMPLOYEES
en nombre
77,979
79,060
Taking into account Targobank, Germany’s
leading consumer credit provider, and
Cofidis, which has operations in around ten
countries across Europe, the group ranks
fourth in the European consumer credit
market.
2011
2012
YOUR INTERESTS AT HEART
Annual Report 2012
47
BANKINSURANCE
THE PREFERRED BANK
OF PRIVATE INDIVIDUALS
Crédit Mutuel endeavours to anticipate and respond to customers’ needs with an
appropriate and particularly innovative offer of bankinsurance products and services.
Sustainable development lies at the heart of Crédit Mutuel’s activity; accordingly,
it offers its retail customers a range of competitive solutions for environmentallyoriented home purchases, refurbishment work and insurance.
Similarly, Crédit Mutuel has gained a genuine lead concerning the quality and
performance of new technological services provided to customers in the areas of remote
banking, remote home surveillance, electronic payments and mobile telephony.
THE BANK WITH A DIFFERENCE
In a context of profound economic and
social crisis in France and elsewhere in
Europe, Crédit Mutuel continued to provide
its members and customers with a
service directly driven by their needs and
expectations.
The increase in outstanding loans is
testament to its support of the economy,
benefiting both private individuals and
businesses (SMEs in particular), while its
focus on regular deposit taking provides a
secure refinancing base.
The group faithfully pursued its strategy
o f co n t ro l l e d d e v e l o p m e n t i n 2 0 1 2 ,
strengthening its positions by relying on
its main pillars of proximity, openness
and security.
MEDIATION: MORE THAN
2,000 OPINIONS ISSUED IN 2012
Created by the Murcef Act, bank
mediation has become an integral
part of the customer relationship.
It covers both retail deposit
accounts and disputes linked
to financial instruments, savings
products, loans and investment
services, insofar as these concern
a contract’s execution rather than
its negotiation.
Crédit Mutuel's ombudsman
received 3,421 claims in 2012,
or 11.6% fewer than in 2011.
48 CREDIT MUTUEL GROUP
Almost 60% of these fell within
its ambit, and 72% received a
response within a month.
The ombudsman issued 2,041
opinions, 53.6% of which were
partially or totally in the
customer’s favour.
Although the ombudsman's
opinion is not binding for the
network, it has been followed
in all cases by Crédit Mutuel’s
regional federations and CIC's
regional banks.
PROXIMITY:
FRANCE’S OMNIPRESENT
24/7 BANK
• The group opened a number of new
branches across the country, particularly
in the Ile-de-France and Toulouse areas,
eschewing exclusion and income-based
geographical segmentation in favour
of the exploitation of demographic and
growth potential. This brought its overall
tally of points of sale to almost 6,000,
including 5,362 in France. Represented
in 80% of French towns with recognised
“sensitive urban areas”, as well as in rural
areas notably through its “points bleu”, the
group seeks to be present in all areas
where local banking services are needed;
GROUP MY LOANS TOGETHER, FINANCE MY
PROJECTS AND SPREAD OUT MY PAYMENTS:
HAVING A DYNAMIC BANK
CHANGES EVERYTHING
• Customers of the branch network benefit
from a comprehensive multi-channel
banking offer based on cutting-edge
technology. In 2012, the remote banking
service clocked up more than a billion
contacts, nearly half of them online, while
all local mutual banks and branches now
provide an online service enabling customers
to communicate directly with their advisor
by email. Crédit Mutuel is a precursor in
this field;
• The development of mobile telephony,
with a focus on high-quality after-sales
service, has generated a prominent new
offer and a new approach to payment
instruments.
OPENNESS:
TRANSPARENCY, THE BASIS
FOR TRUST
• Always with its customers in mind, the group
implemented its industry pricing commitments in terms of simplifying and improving
information and assisting with mobility;
the nominal adjustment made to tariffs
in 2012 is concrete evidence of Crédit
Mutuel’s efforts to limit price inflation at
a time when the crisis is making household
budgets tight;
• The bank believes that a transparent relationship is one which ensures trust, and that
its customers should be able to choose
between subscribing to and managing
their accounts and overdrafts either based on
personal preferences or using predefined
packages; accordingly, it makes full details
of its customer deals freely available on its
website: www.creditmutuel.com.
Annual Report 2012
49
BANKINSURANCE
SECURITY:
A SOLID BANK AND SIMPLE
PRODUCTS WITH REGULAR
RETURNS
• In a context of all-round ratings downgrades
for banks, Crédit Mutuel remains a highlyrated issuer.
• Crédit Mutuel allocates all annual profits
not used to pay dividends on its members’
shares to consolidating its shareholders’
equity. Keeping these funds well provided
ensures ongoing support from shareholders,
the security of the bank’s deposit-making
customers and its financing of sustainable
growth.
• Crédit Mutuel endeavours to keep its
product offer simple and clear:
- in terms of savings, it pushes guaranteedrate products such as savings books and
home savings accounts, while prioritising
regular returns on its life insurance
products;
- when it comes to loans, customers are
encouraged to take out fixed- or cappedrate mortgages, while consumer products
all have a tightly controlled risk profile.
In 2012, the group again boosted its financial
solidity, with a 12.3% increase in the group
share of shareholders’ equity to €37.4 billion.
At 14.5%, its Core Tier 1 solvency ratio puts
it uppermost among French banks and in
the top tier of European banks.
MOBILE TELEPHONY: SEE THE DIFFERENCE
SAVINGS: ACCLAIM FOR
CRÉDIT MUTUEL GROUP
Crédit Mutuel comes out ahead when banks are rated based
on their creditworthiness and the performance of their products.
With its life insurance products, regulated savings accounts,
retirement savings accounts, equity funds and REITs, the group
“does not misuse its reputation,”. and is even considered
“one of the only retail banks that has more customers willing
to recommend it than ones who are dissatisfied.”
Challenges - “Dossier épargne” - April 2013
THAT’S THE DIFFERENCE
50 CREDIT MUTUEL GROUP
Crédit Mutuel’s mobile telephony
activity, marketed under the
NRJ Mobile, Crédit Mutuel Mobile
and CIC Mobile brands, provides
a new channel for bankinsurance
and services and constitutes a new
approach to payment instruments.
The group’s operator,
EI Telecom, mainly markets
its offers through the
Crédit Mutuel and CIC networks,
using the Crédit Mutuel Mobile and
CIC Mobile brands, and NRJ Mobile
for younger users. Other channels
include major retailers (Carrefour),
specialised networks (Tel & Com and
Internity), local outlets (tobacconists
and newsstands), direct online sales
(on www.nrjmobile.fr) and web
merchants like Rueducommerce.com
and Phoneandphone.com.
Customers can also use the group’s
1080 telesales platform.
Facing stiff competition in 2012 with
the launch of Free Mobile, EI Telecom
kept its net growth in positive territory
and grew its active subscriber base
to 1.1 million at the end of the year,
notably by expanding its range to
include new unlimited offers, plans
for seniors and ones with no contract
or handset purchase required.
Crédit Mutuel became a fully-qualified
mobile virtual network operator
(MVNO) in 2012, meaning it now
has integrated telecom operator
architecture (excluding national
transmitters). This new status will
make its marketing and services
completely independent of host
operators going forward and enhance
its ability to optimise purchases of
voice minutes, text message/MMS
and data transmission. A wide-scale
launch of full-MVNO offers was
staged at the end of the first
quarter of 2013.
EI Telecom introduced a number
of offers in 2012, to assure that each
member and customer can find
the right plan and phone, along with
free add-on services such as phone
insurance, emergency assistance
and links from mobiles to the
CyberMUT/Filbanque online banking
facilities, and a wide range of phones
to choose from, with more and
more people opting for financing
(or payments in instalments).
Meanwhile, in response to a fast-
changing market in which contracts
and phone subsidies are gradually
being overtaken as people opt for
contract-free plans with no phone
purchase, EI Telecom developed a
range of new plans that reflect these
changes, particularly a “totally
unlimited” plan, while maintaining
its direct relationship with members
and customers.
EI Telecom will step up its development
in 2013 by further integrating banking
services, insurance and security
into its offers. These services will be
adapted to current market conditions,
including more plans with no contract
or phone purchase required, alongside
its more traditional plans that
come with contracts and subsidised
phones.
In partnership with Crédit Mutuel and
CIC, EI Telecom continues to play
a major role in developing contactless
payments and related services, and
in 2012 participated actively in
the launch of Cityzi in Strasbourg.
Its strategy will be further honed
in 2013, notably with the inclusion
of NFC phones and SIM cards
with the offers.
Annual Report 2012
51
BANKINSURANCE
HOUSING FINANCE:
FOCUS ON EXISTING
MEMBERS AND
CUSTOMERS IN A
DECLINING MARKET
Property prices remained relatively stagnant in France for the second year,
but 2012 ended with a downturn in the housing market.
After an atypical year in 2011, when recovery was boosted by first-time home
purchases – particularly after income criteria to obtain interest-free loans were
removed, meaning the aid was available to all –, the market began to drop again,
and transaction volumes declined.
The limitation of first-time home purchase
aid to new construction contributed to the
gradual slump in existing home purchases
(-25%), while the approaching end of the
Scellier tax scheme for investors slightly
mitigated the downtrend in sales of newlybuilt primary residences late in the year.
In a declining market, though new home
loans are no longer the group’s main avenue
for winning customers, Crédit Mutuel’s
priority remains to provide loans for primary
residences and financing for quality
investments.
HAVING A BANK TO FINANCE
YOUR PROJECTS –
THAT CHANGES
EVERYTHING
52 CREDIT MUTUEL GROUP
Crédit Mutuel aims to satisfy the demands
of its members and customers, focusing
on a direct approach, advice and service
quality backed by a local decision-making
chain and responsive network.
New home loans totalled almost €24 billion
in 2012, for a decline of just 23% from
€31 billion in 2011, whereas the broader
market was down 30% to €120 billion. This
means that the group financed one in five
transactions during the year. Outstandings
increased by €1.1 billion to €180.4 billion.
As a central player in subsidised housing
loans, the Crédit Mutuel group is one of the
primary distributors of interest-free loans,
PAS subsidised acquisition loans and PSLA
subsidised rental-acquisition loans.
It acts as a partner to local authorities,
providing them not only with financing
expertise but also services designed to
facilitate the management of individual
towns and villages as well as district,
departmental and regional councils.
PROPERTY MARKET: 2012 A PIVOTAL YEAR
Questions were once again raised in
2012 about property prices and how
well supply reflects the needs and
lifecycles of households. That said,
the price decreases foreseeable over
the next two years are likely to be no
more than a cyclical adjustment:
the situation in France does not in
any way seem a prelude to a sharp
downturn and subsequent crash.
Property cycles last between seven
and ten years, depending on whether
there is inflation. The downturn is
also likely to take time to reverse –
experts are not anticipating a
rebound before 2016 – but the
decline in prices will probably be
moderate: unsatisfied demand
remains strong, and households in
France have significant cash savings
they will undoubtedly be ready to
invest once the economic and tax
situation seems clearer, provided
that public aid is increased and
better targeted to new needs.
Economic difficulties and
inadequate supply
The backdrop for the downturn in
the French market is very different
than in other European countries:
the price increases recorded since
the rebound in the 2000s have not
affected buyers’ solvency, given the
steady decline in interest rates and
longer loan repayment periods.
Household debt levels have also
remained much lower than elsewhere
in Europe, with the average (80% of
gross disposable income) now very
close to that of German households
and far below the average in the
United Kingdom and that seen
in Spain.
In sum, it is mainly the economic
environment, together with delays in
construction programmes where they
are needed, that has been keeping the
market down since early 2012. Other
factors include the sharp contraction
in aid for first-time buyers, with the
number of interest-free loans having
been reduced fivefold over one year,
and recent radical changes in taxation.
New lending down sharply
across the entire market
Home loan production shrank by
31.5% to €98.5 billion in 2012
(Bank of France data), falling back to
the 2009 level. Some €120 billion of
new loans were granted, down from
€160 billion in 2011 and the record
€170 billion reached in 2007.
This drop in new loan production
was attributable to:
- A decline in the number of sales
of existing (-12%) and new homes.
Acquisitions of properties not yet
complete, which had previously been
boosted by fiscal measures giving
incentives to rental investors, ended
the year down 18%, and the number
of single-family homes under
construction declined by 15%, the
latter decline being partly due to the
difficulty the industry has
experienced in adapting to new
thermal building regulations;
- The “wait-and-see” approach
taken by households due to the
deterioration in the job market or,
in some cases, because they are
planning to buy a home but are
hoping that prices will come down;
- A steep decline in first-time
home purchases, particularly of
subsidised homes: after interest-free
loans were restricted to new
construction, the number of
subsidised existing home sales fell
by almost 50%, while tougher terms
for deferred payments on interest-free
loans based on the 2012 tax scale
made it harder for lower-income
households to acquire new
single-family homes.
More new loans were granted
to second-time homebuyers and
households with more funds for
down payments, particularly those
selling homes at the same time,
reflecting banks’ cautious approach
ahead of a possible decline in prices.
Very low interest rates and favourable
refinancing terms nonetheless
protected the market from an
extreme correction.
Annual Report 2012
53
BANKINSURANCE
GIVING EVERYONE A CHANCE TO
BUY THEIR PRIMARY RESIDENCE
A PRIORITY FOR THE GROUP
AN ACTIVE PARTNER
IN SUBSIDISED HOUSING
The group is one of the biggest banking
partners for first-time buyers, with extensive
experience in providing governmentsubsidised loans via the new interest-free
loan scheme (though it now applies only
to new construction). It also continues to
provide PAS subsidised acquisition loans
and PSLA subsidised rental-acquisition
loans, and plays an increasing role in
financing low-cost rented accommodation
by distributing PLS loans.
Crédit Mutuel has a longstanding relationship
with the Action Logement organisations,
operators of the former “1% logement”
subsidised housing scheme, which have
traditionally been active in the rental sector
for employees.
An ac tive player in several regions,
the group has a wide range of activities:
– it has capital stakes in around 40 subsidised
housing bodies (entreprises sociales de
l’habitat - ESH). Crédit Mutuel Arkéa has set
up a partnership with the ESH federation
and created an observatory on social
practices in the areas of employee savings
and retirement benefits,
54 CREDIT MUTUEL GROUP
– it also contributes its know-how in the sale
of social housing (HLM) through subsidised
homebuyer loans,
– it is a close partner of social housing
cooperatives for construction programmes
under subsidised homebuyer schemes,
which it finances through interest-free
loans or tenant home purchase schemes.
– it works with Fédération des entreprises
publiques locales (EPL), a trade body
that notably represents 226 real estate
EPLs (local public enterprises) managing
530,000 homes.
As a traditional partner of the French agency
for housing improvement (Agence nationale
pour l’Amélioration de l’Habitat - ANAH),
the group aims to work more closely with
social housing bodies in sensitive urban areas
covered by French urban renovation agency
(Agence Nationale pour la Rénovation
Urbaine - ANRU) programmes.
A recognised player in the social housing
market, particularly through regulated
subsidised housing loans (PLS and PSLA),
Crédit Mutuel-CIC has developed attractive
commercial offers to help subsidised rental
specialists like OPH, ESH, COOP HLM and
SEM manage their cash.
PARTNERING
WITH LOCAL AUTHORITIES
In addition to providing local authorities
with financing expertise, Crédit Mutuel
offers them services designed to facilitate
the management of individual towns and
villages as well as district, departmental and
regional councils.
As a non-centralised banking organisation
with strong involvement in local economic
and social activities, it is the natural partner
to the main civic decision-makers, to which
specialised teams are assigned. A considerable number of elected representatives
sit on the boards of its local mutuals.
The liquidity crisis and new Basel 3 regulatory
framework had a major impact on local
authority funding in 2012. The Basel
3 framework discourages banks from
granting the long-term loans local authorities
need for their investments. To complicate
matters further, local authorities are not able
to manage their bank deposits themselves
but must centralise all their funds with the
French treasury office.
Crédit Mutuel managed to overcome this
difficult environment and these constraints
and play a full role in financing local
investment by responding positively to the
public funding auctions held in the last two
years and increasing its outstanding loans
from €6.6 billion to €7.1 billion.
Ataraxia building
in Le Colombier Melesse
Crédit Mutuel is also France’s leading
distributor of public sector purchasing cards,
payment instruments specially adapted
to public sector accounting requirements to
facilitate the payment of local authorities’
running expenses.
Crédit Mutuel is a partner of Association
des Petites Villes de France and Fédération
des Entreprises Publiques Locales.
Annual Report 2012
55
BANKINSURANCE
To specifically cater for the needs of young
people, most group entities now offer a
prepaid bank card enabling 12 to 17 year olds
to manage their pocket money securely and
independently. It can be used for purchases
in France or abroad, including online.
The Crédit Mutuel group is responding to the
growing number of international transactions
and young people’s increasing international
mobility by gradually rolling out its banking
and health insurance offers abroad.
The group also offers intergenerational savings
products (home savings accounts and life
insurance schemes) that can be subscribed
to by parents or grandparents to set aside
money for their child or grandchild’s future.
Such solutions are becoming increasingly
important in a global economic environment
that is pushing back the age of financial
independence for the under 30s.
The group is particularly closely involved
with young people who undertake
‘responsible citizenship’ projects, through
partnerships with non-profit associations
such as the national network of junior
associations, Trophées J.PASS, etc. and
initiatives launched directly by the
Crédit Mutuel federations, such as the
“Les jeunes qui osent” pro gramme,
organised by the Centre Est Europ e,
Ile-de-France, Sud-Est, Savoie-Mont Blanc
et Midi-Atlantique, Anjou, Loire-Atlantique
et Centre - Ouest, Dauphiné -Vivarais,
Méditerranéen, Centre and Normandie
federations, Crédit Mutuel Maine-Anjou
and Basse-Normandie’s “Challenge Jeunes
Créavenir” contest, and Crédit Mutuel du
Sud-Ouest’s “Coup de Pouce Évenement
Lo cal ”programme.
CRÉDIT MUTUEL SETTING THE TONE
GIVING YOUNG
PEOPLE THE
MEANS TO
CARRY OUT
THEIR PROJECTS
INSTILS
CONFIDENCE
FOR THE
FUTURE
A TAILORED OFFER FOR
YOUNG PEOPLE
The Crédit Mutuel group has a dedicated offer for young people, from birth right
up until they join the workforce. Teaching people how to use banking services,
encouraging savings from an early age and assisting young account holders
along the road to independence are the main facets of the bank’s offer for a segment
that represents a quarter of the Crédit Mutuel/CIC retail customer base.
Pop Corn covers the period from birth to
11 years and features the livret A/bleu savings
book account, which remains a core product
for very young people, as well as insurance
and savings products and assistance with
starting and continuing to save.
An offer that caters for young customers,
whatever stage of their schooling or career
they are at (secondary school pupil, apprentice,
student or graduate employee), in three
major areas:
– day-to-day banking needs, with services
that help young customers to manage
their budget along with a range of cards
to help them on the path to financial
independence;
56 CREDIT MUTUEL GROUP
– accommodation, with Clic-Clac, a rent
guarantee package comprising a loan
to finance a guarantee deposit, a bank
guarantee for the landlord and a home
insurance policy. These products can be
subscribed to separately;
– projects: computer loans, the €1 per day
driving licence scheme, and flexible
student loans including, in 2012, the Oséo
government-backed student loan, which
enables the student to borrow up to
€15,000 over a two- to ten-year period and
comes with a government guarantee
of 70% for the unpaid portion of capital.
This loan is specifically tailored for young
people without a parental guarantee.
Crédit Mutuel has been the bank for every kind
of music for ten years now.
It sponsors some of the leading music events and
programmes on television and radio, such as the NRJ
Music Awards, les Victoires de la Musique, Taratata
and a number of Radio France music shows.
On the ground, Crédit Mutuel works with France’s main
festivals countrywide: le Printemps de Bourges,
les Francofolies de la Rochelle, le Main Square Festival
in Arras, Beauregard in Hérouville Saint-Clair, Musilac
in Aix-les-Bains, la Fiesta des Suds in Marseille and,
since 2012, les Vieilles Charrues in Carhaix and Les
Déferlantes in Argelès-sur-Mer. Crédit Mutuel has been
the official partner of Fête de la Musique alongside the
ministry of culture and communication since 2008.
In response to the public’s changing musical interests,
Crédit Mutuel has also started to sponsor musicals.
After contributing to the highly successful Le Roi Soleil
(2005), Cléopâtre (2008) and Symphonic Mania’s
Mozart (2009), it is now a partner for 1789, Les Amants
de la Bastille, the Stars 80 concert tour and the Robin
des Bois musical, which will be performed across
France through 2014.
Crédit Mutuel also supports associations and projects
that promote popular access to music, such as
Jeunesses Musicales de France, which organises
2,000 concerts every year for primary and secondary
school children, and Confédération Musicale
de France, which brings together more than
700,000 musicians in 6,000 music academies.
Music is also a way for Crédit Mutuel to get involved
in important causes. It notably contributes to the
fight against cancer by sponsoring the Tout le monde
chante contre le cancer festival and Night for life
(since 2006 and 2010 respectively).
Crédit Mutuel-CIC supporting major classical
music events
Crédit Mutuel-CIC has signed up for five years
as official partner (and founder) of the Festival
de Pâques (Easter festival) in Aix-en-Provence,
a new musical event of international dimensions.
It aims to reach beyond confirmed music lovers
to as broad a public as possible. The first festival
was held from 26 March to 7 April 2013, in the year
when Marseille and its environs are being celebrated
as the European Capital of Culture.
CIC also supports young performers through its
patronage, since 2003, of the Victoires de la Musique
Classique classical music awards.
This event, which enables talented young musicians
to build a reputation, helps to promote classical music
to an increasingly wide audience.
Pooling energies, developing the ability to listen
and promoting individual talents and goals are just
some of the values to be found in music and
which justify the group’s commitment to this form
of expression.
Annual Report 2012
57
BANKINSURANCE
50 AND OVER:
TARGETING
SPECIFIC NEEDS
Addressing the needs of seniors is a top priority
for the group. For those 50 and over, it offers products
and services that are tailored to their specific situations,
expectations and interests.
Customers aged 50 and up can be in very
different situations and thus have very
different needs depending on their age,
personal journeys, home and work life (still
working or retired), and their health. This
category notably includes the large baby
boomer generation, which has been a driving
force in changing many aspects of society,
and is now reaching retirement age with
expectations and behaviours that are not
the same as previous generations.
The group has developed a broad array
of banking and insurance products and
services specifically for these customers.
For most consumer departments, the
expectations of seniors are not fundamentally
different from those of younger customers,
so the same solutions are offered. This is
notably the case for day-to-day banking
services and the extended range of core
savings and investment products.
On the other hand, some products are
specifically designed to reflect changes in
these customers’ situations: for instance,
death benefits on loan insurance are adjusted
58 CREDIT MUTUEL GROUP
USEFUL SERVICES ARE
to provide longer coverage, and some
health insurance products can be adapted
to reflect changes in healthcare spending
(notably eye and dental care) as age increases.
Customers particularly appreciate the support
and advice they receive on getting ready for
important phases of their lives (preparation
for retirement, moving house or adapting
their homes, ageing parents, inheritance/
gifts, etc.).
own homes for as long as possible, the group
allows people to subscribe to long-term care
insurance before they need it, to limit their
financial dependence if they do need care,
and offers support and advisory services.
They can also subscribe to a special helpline
service that gives them and their loved ones
peace of mind, with an alert system enabling them to reach live agents 24 hours a
day in the event of an emergency.
In response to the specific issues associated
with old age, the loss of independence and
seniors’ desire to stay in touch and in their
These offers are perfect illustrations
of Crédit Mutuel’s commitment to
attentiveness and service.
SERVICES THAT RESPOND
TO THE NEEDS OF ALL
Annual Report 2012
59
BANKINSURANCE
NUMBER ONE BANK FOR
NON-PROFIT ASSOCIATIONS
In 2012, Crédit Mutuel consolidated its position as the number one bank
for associations(1), managing almost 28% of the sector’s budget.
With a customer base comprising 435,000 associations, it is serving the needs
of a sector that plays a key role in reinforcing social cohesion and creating
new community ties.
At end-2012, the group was managing close
to €16.2 billion in non-profit association
deposits (up 0.7%) and €2.5 billion in
outstanding loans (up 4.2%).
A specifically targeted banking offering,
assistance facilities for voluntary workers
and close relationships with associations
and their federations at local, national and
regional level have helped to make Crédit
Mutuel their partner of choice.
The CNRS/Centre d’Économie de la Sorbonne
survey programme, conducted in 2011 and
2012, reaffirmed Crédit Mutuel’s position as
the leading bank partner for associations
in the fields of healthcare, social initiatives,
education and humanitarian work, these
being the fields in which there are the most
large non-profits.
It is the number two bank for associations
in the sporting, social, cultural, economic
and local development fields, which are
often small- or medium-sized.
Crédit Mutuel remains the leading bank(2)
for medium and large non-profits, 29%
of which have made it their partner.
THE COMMITTED BANK
WITH 435,000 ASSOCIATIONS AS CUSTOMERS
AND 28% OF THE SECTOR’S BUDGET,
CRÉDIT MUTUEL IS COMMITTED TO
STRENGTHENING SOCIAL COHESION
[email protected]èque has been working alongside
the voluntary workers, directors and creators
of associations since its launch in 2009.
The website, which is open to the public and
features exclusive content for Crédit Mutuel’s
non-profit customers, now offers 11 easy-toaccess practical guides such as Créer son
Association (Setting up an Association);
La Responsabilité des dirigeants (Managers’
responsibilities), Organiser ses manifestations
(Organising events), Les Mineurs (Minors),
Les bénévoles (Volunteers), Le Mécénat
(Patronage) and L’Emploi (Employment).
In 2012, the expertise made available to
associations was expanded to include specific
areas like sports, the performing arts and
activity-based groups.
To ensure that it speaks to all audiences
and interacts with all players in the extremely
Crédit Mutuel supports numerous networks
under long-term agreements that cater
for children, young people, the elderly,
families, into-work schemes and social,
cultural and sporting activities, including:
diverse world of associations, [email protected]èque
is very active on social networks like Facebook,
Twitter and YouTube. The site’s official blog,
“le Mag’ [email protected]èque”, is an interactive
online space where users can respond to
content and post contributions. [email protected]èque
is also available via a mini-site optimised
for mobile access.
With more than 12,000 newsletter subscribers,
upwards of 11,000 likes on Facebook
and more than 800,000 visits a year,
the [email protected]èque site’s traffic is doubling
every year, proof that more and more people
are interested in content and services relating
to associations.
Through [email protected]èque, Crédit Mutuel is doing
more than ever to support their commitment
– Fédération Française d’Education
Physique et de Gymnastique Volontaire
(FFEPGV): Crédit Mutuel’s national
partnership with the FFEPGV has been
renewed for a period of three years. This
state-approved federation is France’s fifthlargest sporting federation. It represents
540,000 members belonging to more than
7,000 sports associations across the country.
Through this partnership, Crédit Mutuel
notably contributes skills at the national,
regional, departmental and local levels
through the [email protected]èque website and
offers dedicated services;
– Fédération Nationale des Jardins Familiaux
et Collectifs (FNJFC): This federation
focuses on nature conservation and the
environment, sustainable development and
enhancement of the living environment.
Crédit Mutuel contributes to the development of this national association, which
is becoming increasingly involved in
developing public policies on land planning
and health (dietary, physical and mental);
– Fédération Sportive et Culturelle
de France (FSCF): Crédit Mutuel has
renewed its national partnership with
this sporting and cultural association
for another three years. FSCF is present in
74 departments throughout France and
comprises more than 3,600 associations and
sub-associations with 500,000 members,
of which half are under 17, and 40,000
voluntary supervisors. Crédit Mutuel
provides assistance in organising national
championships as well as sporting and
cultural events, and for trophies recognising
young people’s commitment;
– Union Générale Sportive de l’Enseignement Libre (UGSEL): Crédit Mutuel
has renewed its national partnership with
UGSEL for three years. UGSEL is a federation
comprising more than 3,700 educationsector sports clubs. With 822,600 members,
it benefits more than 2 million pupils and
134,000 teachers.
The group provides financial support
for the promotion and development of
physical and cultural activities in primary
and secondary Catholic schools and helps
organise national sport competitions.
Crédit Mutuel also shares its expertise in
providing banking and financial services
CREDIT MUTUEL
STANDING ALONGSIDE
YOUTH ASSOCIATIONS
Crédit Mutuel provides active
support to young initiative-takers
in the not-for-profit field.
In 2012, the group renewed its national
partnerships with the Familles Rurales
(rural families) association and the
Réseau National des Juniors
Associations (RNJA) network.
Its partnership with Familles Rurales
included, for the 8th consecutive year,
the Trophées J. PASS competition
to provide financial support for
humanitarian, ecological, social
and community projects handled
by young people aged 12-25.
The Group has partnered RNJA since
its creation in 1999, and continues
to support this association which
enables young people under 18
to organise initiatives and carry out
projects within an association
framework.
As one of RNJA’s leading banking
partners, Crédit Mutuel also
contributes to the financing of
the many guides it publishes.
Several other of the bank’s
partnerships also prioritise youth
initiatives, particularly those with
UNHAJ, UGSEL and FSCF.
to associations, and volunteers can use
the [email protected]èque website for support in
their day-to-day work.
– Union Nationale pour l’Habitat des Jeunes
(UNHAJ): Crédit Mutuel and UNHAJ have
committed to renew and strengthen their
partnership for a period of two years.
The goal of this union is to help young
people get back into mainstream society
and move towards financial independence.
The bank provides financial support and
communication tools to drive publicity for
the scheme’s initiatives;
– L’Union Nationale Interfédérale des
Oeuvres et Organismes Privés Sanitaires
et Sociaux (UNIOPSS), a national federation
of private healthcare and social work
organisations. As a member of its Club des
partenaires (partners’ club), Crédit Mutuel
provides financial support for a number
of projects and participates actively in
the federation’s conventions and annual
meetings.
www. associatheque.fr
(1) Source: Centre d’économie de la Sorbonne, Université Paris 1 - 2011-2012 Survey conducted by Viviane Tchernonog, CNRS researcher.
(2) Positioned as leading bank or only bank.
60 CREDIT MUTUEL GROUP
Annual Report 2012
61
BANKINSURANCE
AN APP FOR AGRISALON.COM
The group’s Agrisalon.com website, which has been addressing the needs of farmers for more than ten years, can
now be accessed via mobile phones. The new app, freely
available on smartphones, provides most of the essential
information farmers need.
They can use it wherever they are to get news updates or
weather forecasts or for information about prices and upcoming events, all with just a few clicks.
In the latest satisfaction survey, conducted late in 2012,
92% of Agrisalon.com users said they would recommend
it to their friends.
This positive feedback is consistent with the steady increase in traffic on the site, with monthly visits having risen
to more than 150.000.
New features added to the site can also be found on the
app. Weather forecasts are now provided for ten days, instead of five, and can be accessed freely and for free, with
information provided for 30,000 different areas of France
along with detailed, hourly updates on such key concerns
for farmers as temperatures, wind speeds, rainfall and humidity.
To provide even more up-to-date information,
Agrisalon.com has been adding more news posts per day
since the beginning of 2013 to keep users on top of developments in the agricultural world.
NUMBER TWO BANK
FOR THE FARMING SECTOR
Plan Assurance Vie Agri, which enables
holders to enjoy a regular additional income
on reaching retirement age, is available for
farmers and their spouses as well as paid
helpers.
Crédit Mutuel ranks a firm second in the farming sector with 17% of subsidised loans
to young farmers and 13% of the medium- and long-term loan market.
Tonic Agri provides a way of building up a
rainy day fund for the business and offers
both readily accessible capital and, under
certain conditions, access to the tax benefits
implemented under the Dotation pour Aléas
freak events provision fund legislation.
The group has been a close partner of the
farming community throughout France
for more than 20 years, serving livestock
farmers, crop producers and wine growers
at all stages of a farm’s life, from set-up to
succession.
Crédit Mutuel’s loans, savings products and
insurance solutions are all suited to the specific needs and constraints of agricultural
production.
Its financing solutions cover the entire
range of farming projects.
The Modul’agri business loan with adjustable
maturities enables borrowers to tailor
repayments to their cash flow.
62 CREDIT MUTUEL GROUP
Actimat is a farming equipment financing
offer distributed directly through farm
machinery dealers.
Agridispo provides farmers with a range of
short-term cash facilities to enable them to
respond rapidly to urgent financing needs.
New medium- and long-term loans granted
in 2012 totalled €1.5 billion, while the overall
farming loan book came to €5.7 billion.
In terms of investment and cash management
products, Crédit Mutuel’s range enables
customers to balance their requirements for
asset availability, profitability and security.
Crédit Mutuel also offers solutions designed
to allay production fluctuations caused by
climatic and economic factors.
The Assur Récolte harvest insurance products
are available as part of the Tonic Agri rainy
day savings package and offer protection
against grain or grape harvest failure for the
most common climate-related problems.
Préviris provides online access to grain
and milk futures markets, allowing users to
control price risk independently.
With almost one-fifth of its local mutual
banks located in towns or villages with
fewer than 2,000 inhabitants, along with
Fédération du Crédit Mutuel Agricole et
Rural (FCMAR), a dedicated nationwide
entity run by elected farmers, Crédit Mutuel
is particularly attentive to developments
in the agricultural sector, in touch with all
types of farming and responsive to all the
various associated needs.
It participates in national and regional
farm shows and most agricultural events
organised at the local level.
SPECIFIC PRODUCTS, SERVICES
AND SOLUTIONS TO HELP FARMERS –
THAT’S THE DIFFERENCE
Annual Report 2012
63
BANKINSURANCE
CONCOURS TALENTS 2012:
CRÉDIT MUTUEL SUPPORTING
BUSINESS START-UPS
Created in 1997 by the BGE (formerly Boutiques de
Gestion) network, “Concours Talents” is an annual
contest recognising 100 entrepreneurs who had
assistance in carrying out their projects. Supported
by Crédit Mutuel, la Macif, France Telecom-Orange,
Crédit Agricole, Crédit Coopératif, Agefiph, DIESE,
Médicis, Oséo, Dynamique Entrepreneuriale, Widoobiz,
the MINEFI and 600 business start-up assistance
structures, Talents is the largest regional and national
contest for start-ups. The 2012 national awards,
announced in November, awarded 11 national prizes
among the 94 regional winners. Crédit Mutuel, which has
been a partner to BGE since 2009, gave the award in the
Artisans and Small Retailers category to Bérengère Réale
NUMBER THREE BANK
FOR SMES
Crédit Mutuel plays an active role alongside all those involved in the regional economy,
whether independent professionals, microbusinesses or small and medium-sized
enterprises.
It ranked as the number three bank for the sector in 2012 with more than €86 billion
in outstanding loans.
Business financing activities are carried out
by the network and specialised subsidiaries:
Banque Européenne du Crédit Mutuel
(BECM), a subsidiary of Crédit Mutuel Centre
Est Europe; Arkéa Banque Entreprises et
Institutionnels, a subsidiary of the Crédit
Mutuel Arkéa group; and Banque Commerciale du Marché Nord Europe (BCMNE),
holding company for the business
banking division of Crédit Mutuel
DELIVERING CUSTOM
Nord Europe – the majority
SOLUTIONS FOR
shareholder of SA Crédit Professionnel, the central body for
PROFESSIONALS,
Crédit Professionnel Belge.
MICROBUSINESSES AND
CIC has also put in place a system
SMEs – THIS IS HOW WE
ensuring the local presence of
account managers and rapid
TAKE AN ACTIVE PART IN
response times thanks to short
REGIONAL ECONOMIES
decision-making circuits.
The group is a major financer of independent
professionals, artisans, small retailers and
microbusinesses in the services and light
manufacturing sectors, with nearly 650,000
customers and a 23% penetration rate.
It is particularly strongly positioned among
business start-ups, notably through the
64 CREDIT MUTUEL GROUP
assistance provided to entrepreneurs and the
distribution of business start-up loans (Prêts
à la Création d’Entreprise – PCE), in which it
holds third place with a market share of 20.1%
in terms of the number of loans granted.
The group’s guarantee activity, comprising
Oséo, Siagi and France Active Garantie,
continued to grow.
It has active partnerships with France
Initiative, France Active, BGE (the former
Boutiques de Gestion network) and ADIE,
France’s main start-up support networks.
It has worked for more than 20 years to help
develop local economies with France Initiative, the largest association-run business
creation and transfer aid network in France.
The group is a member of the France Initiative “Banques et Etablissements financiers”
central governing body and is actively
involved with more than 60% of this
network’s local initiative platforms, with
Crédit Mutuel covering 172 of them and
CIC 159. In 2012, it distributed 2,768 loans
totalling €180 million.
The group also supports France Active,
a network which aids and finances social
inclusion through economic initiatives.
As founder of six of the network’s 38 local
funds, Crédit Mutuel is present on half of the
loan acceptance committees and accounted
for 21.6% of the guarantees granted in 2012.
Since January 2009, Crédit Mutuel has been
a partner of BGE, a non-profit association
under the Law of 1901 and the leading
independent network for business start-up
aid with 430 branches nationwide. Through
this partnership it helps businesses from the
ideas stage through to their third anniversary.
BGE initiates and manages a variety of
schemes (experimental business incubators,
financial engineering for projects, enterprise
zones and entrepreneur networks) to
encourage job creation, initiative-taking,
wealth creation and social cohesion.
In 2012, work continued on initiatives taken
in 2009 at regional level in Pays de la Loire,
PACA (Provence-Alpes-Cote d’Azur) and
Burgundy to strengthen cooperation
between the Crédit Mutuel federations
and the Boutiques de Gestion.
Crédit Mutuel continues to be a partner of
ADIE, which saw business overall recover in
2012. Through seven regional federations
and a CIC regional bank, the Crédit Mutuel
group financed 15% of all 2012 lending
by this organisation, representing a total
of more than €4.3 million.
WORKING ALONGSIDE SMES
AND MICROBUSINESSES
Despite the still sluggish economic climate,
overall funds lent by Crédit Mutuel to
microbusinesses and independent SMEs
and her company, Oclico, which perfectly illustrates the
existing ties between the digital and local economies.
Oclico sells farm products such as vegetables and fruit
online in the Grenoble region and delivers them to
buyers’ home or place of work, exemplifying two of
Crédit Mutuel’s core values: proximity and technological
progress. The list of awards for 2012 – recognising
technical and technological advances, artisans and small
retailers, initiatives in the social economy, services, rural
development or personal services – is testament to the
diversity of the businesses being created or taken over
and the steadfastness of these entrepreneurs for whom
setting up companies is a bona fide alternative to other
types of work.
(including drawdowns and available but
unused credit lines) rose by 2.55% in 2012.
Investment loan outstandings increased by
2.60% for businesses as a whole (i.e. including
SMEs and large companies), while treasury
loan outstandings grew by 3.83%.
Crédit Mutuel continued to review files
submitted by the credit ombudsman. There
was a drop in this business between 2011
and 2012.
The group’s successful mediation rate stood
at 34% at 30 June 2012. This low rate
highlights the network’s more in-depth
approach to referrals and its excellent level
of local knowledge: for a great number of
companies, notably very small businesses,
the mediator approved the Crédit Mutuel
and CIC’s decisions.
LIVRET A/BLEU/LDD: SIGNIFICANT
CONTRIBUTIONS TO SME FINANCING
After ceilings were raised on the livret A, livret bleu and LDD (sustainable
development) regulated savings accounts, many savers opted for these
products, seeing in them a source of security and liquidity in an uncertain
economic environment.
Total funds in these regulated accounts, taxed at special rates, rose by
almost 24% to above €48 billion, lifting the group’s share of the regulated
savings market to more than 14%.
Regulatory requirements as to the use of non-centralised resources
were largely complied with: loans granted by the group to SMEs amounted
to more than three times the decentralised funds that remained on its
balance sheet (324% utilisation rate).
Annual Report 2012
65
BANKINSURANCE
REMOTE BANKING
In millions of connections
INTERNET
ATMs
SMARTPHONE/
MOBILE INTERNET
APPLICATIONS
+7.1%
492.1
CUSTOMER
RELATIONS
CENTRES
MINITEL /
AUDIOTEL
+11.9%
527
1,097.0
+122.5%
386.7
-0.3%
155.5
385.5
69.9
980.2
26.9
-0.7%
26.7
-50%
4.6
2011
TOTAL REMOTE
CONNECTIONS
2012
2011
2012
2011
2012
2011
2012
2011
2.3
2012
2011
2012
A FULL RANGE OF
REMOTE BANKING SERVICES
MASTERING NEW TECHNOLOGIES TO PROVIDE
EXCELLENCE TO MEMBERS AND CUSTOMERS THROUGH
SERVICES – THAT’S THE DIFFERENCE
TECHNOLOGY
INNOVATION AS
AN ANCHOR POINT
Using its technological skills to serve its customers is a central element of the group’s
development strategy. It regularly adds new, innovative services to its range,
strengthening its expertise and leading role in this area.
The group’s electronic document management system is fully integrated into its different
operational processes in the branches
and at the back-office level: more than
600 million documents can currently be
accessed in real time, about 217 million
of which were generated in 2012, up 34%
from 2011.
More than 1.8 million customers have signed
up to receive their statements in electronic
form, via the internet, rather than paper form.
66 CREDIT MUTUEL GROUP
Since the first quarter of 2013, these customers
have also been able to view their statements
on smartphones, a new option that can be
expected to drive further growth.
Innovations like MailTiers, which automatically
links email exchanges with customers’ files,
give the bank a competitive edge in terms
of the quality of its relations with remote
banking customers. This application makes
it easy to locate a customer’s whole file from an
email received or to view all email exchanges.
MailTiers assigned 13.5 million emails and
4.3 million secure messages in 2012. It was
also expanded to include a “Business”
application, assuring that remote banking
relations are suited to the needs of this
customer category.
The web remained the most popular channel
for internet users in 2012, with more than
500 million connections. New services
were also added to the site, including.
• a new Transfers application, designed to
be used as a web service;
• new payment functions, a priority investment area given the growth being recorded
in e-commerce and the nascent m-commerce
market. In 2012, the group added new
payment forms to its platform: paiement
express, thanks to which customers do
not have to punch in their bank card
numb er ever y time, and paiement
agrégé, which reduces bank card costs
for small transactions.
NEW INTERNET SERVICES FOR
SMARTPHONES AND PCs
The group has been involved in mobile technologies since the first WAP applications
were in introduced in May 2000. Over the years,
The group aims to be within easy
reach of its customers wherever
they are, providing them with a full
range of remote banking services
in addition to its branch network.
With over a billion uses in 2012,
these services are clearly well
suited to their needs.
While internet banking still
accounts for half of all contacts,
its growth rate diminished in 2012
due to the spectacular jump in the
use of smartphone applications,
which represent a new form of
contact between the bank and
its customers.
it has steadily introduced new versions
to keep up with technology and offer its
customers the best possible banking
experience, wherever they are.
Mobile applications have become a core
driver of business growth. The fact that
connections skyrocketed in 2012 is proof
that the latest versions of smartphone
applications for iPhones and Androids met
all user expectations in terms of functions
and user-friendliness.
Offering secure internet transactions is
a top priority for the group. To keep pace
in this constantly-evolving area, the
group launched an updated version of
its “Confidence bar” in 2012.
Annual Report 2012
67
BANKINSURANCE
ELECTRONIC PAYMENTS
CASHPOINTS
+16.5%
PAYMENTS WITH
AFFILIATED RETAILERS
(in millions)
MARKET SHARE ELECTRONIC
PAYMENTS
MARKET SHARE RETAILERS
+0.2 pt
+8.1%
9,044
7,760
BANK CARDS
(in millions)
+0.2 pt
2,043
1,890
25.0% 25.2%
19.6% 19.8%
+2.2%
9.0
2011
EXTENSIVE ATM NETWORK IN
FRANCE AND ABROAD
The group’s large number of ATMs - more
than 9,000 cashpoints - plays a large part in
developing its remote services, representing
more than a million transactions every day.
Both in France and abroad, the ATM network
gives customers access to a comprehensive
range of domestic banking transactions
including withdrawals, account selection
and viewing, making transfers and deposits
(intelligent or envelope-based) and ordering
cheque books. The group’s ATMs can also
be used to top up an increasing number of
facilities such as mobile phone accounts,
prepaid cards and travel passes (Navigo,
Badgéo, Técély, etc.).
The group’s new ATM software was launched
late in 2012. It is based on updated, simpler
architecture with a man-machine interface
using web-style presentation and touch
screen technology in tandem with standard
side buttons. It is available in seven languages,
allowing all group customers, be they
German, Belgian, French – or, in future,
natives of other countries – to use self-serve
functions (transfers, account information)
at any ATM managed by the group. A new
service allowing cardholders to choose
their pin codes will gradually be made
available starting in 2013. The group rolled
68 CREDIT MUTUEL GROUP
out its first touch screen ATMs in France
late in 2012.
ELECTRONIC PAYMENTS:
EXPERTISE, LEADERSHIP
AND NEW SERVICES
The group’s capabilities in electronic
payments make it France’s second-largest
player, with market share of almost 20%.
It strengthened its leading position in
affiliated retailer transactions in France,
with a 25.2% market share representing
2 billion transactions worth a total of
€92.4 billion.
The group maintained its leadership in
merchant acquisition with large retailers
like Casino, Auchan, Carrefour and Darty,
handling more than 2 billion transactions.
With 9.2 million cards in issue, Crédit Mutuel
ranks second in the bank cards market
and is the market leader for public sector
purchasing cards. It also continues to lead
the way in contactless payments via cards
and mobile phones.
Crédit Mutuel’s complementary and
competitive offer ensures it has coverage of
all market segments in this area and works
with all of the key players, from the integrated
distribution majors and franchise networks
to independent retailers.
2012
2011
2012
New services were developed and
brought to market for cards issued by the
bank in 2012, including:
– ability for cardholders to choose the design
of their card from a catalogue of ten images;
– e-retrait: a service enabling customers
to give an access code to a third party
for emergency cash withdrawals from a
CM-CIC ATM without a bank card;
– roll-out of the Etalis service for those
who rely heavily on the “Différé Plus”
deferred payment service;
– corporate and travel account cards:
roll-out of the MasterCard Only card,
addition of 3D Secure option, corporate
internet site.
Work done to detect and combat bank card
fraud allowed the group to contain ever
more sophisticated attacks in 2012.
In the acquiring segment, the group continued
its international expansion in 2012, particularly with airlines in the US and Canada,
and is launching a new operation in Poland.
The ongoing globalisation of markets is
leading the group to expand its approach
well beyond the current scope.
A precursor in Europe, Euro-Information
is implementing the new acceptance and
acquiring system to comply with SEPA.
2011
9.2
2012
2011
2012
2011
2012
This new acquiring platform, developed in
partnership with Canada’s Desjardins, will
incorporate EPAS (Electronic Protocols
Application Software).
INTERBANK TRANSACTIONS:
TARGETED OFFERS
In 2012, the group was the third-ranked
originator/receiver on the CORE system
by transaction numbers with 4.5 billion
exchanges.
Business-to-bank transactions have undergone major changes with the replacement
in June 2012 of X25 communications by
online systems.
The Electronic Banking Internet Communication Standard (EBICS) protocol has been
by far the leading choice for companies.
The group has regularly bolstered its range
of targeted offers to meet all the needs
of small, medium and large companies,
notably adding the “Hub Transferts” solution.
Current work is focusing on the 1 February
2014 SEPA (Single Euro Payments Area)
deadline, a significant date since it will
substantially affect the group’s payments
platform due to the introduction of new
services like mandate management, and on
preparing to provide technical support to
corporate customers during migration.
Annual Report 2012
69
BANKINSURANCE
SUBSIDIARIES
SPECIFIC SERVICES AND
CUSTOM SOLUTIONS
FACTORING AND RECEIVABLES
FINANCING AND MANAGEMENT
CM-CIC Factor, the group’s factoring and
receivables financing and management
subsidiary, is the fifth-largest bank factor
in France with more than 3,000 active
contracts, turnover of €16.3 billion and
total managed outstandings of €2.6 billion.
Turnover rose by 11.9% in 2012, in an
overall market that expanded by 7.6%.
It signed 711 new contracts, representing
potential turnover of €4.45 billion, and set
up some 3,000 receivables lines of credit for
total authorisations of €233 million. Net
profit came to €4.2 million.
NEW CONTRACTING BUSINESS
FOR SODEREC
Soderec, a nationwide Crédit
Mutuel subsidiary, works
with real estate contractors in
the public and private sectors,
representing the contracting
authority or acting as lead
contractor. It can also represent
these parties in partnerships.
Soderec’s 2012 revenues came
to €4 million.
The company won several
tenders for new projects,
including the Strasbourg school
of management, a consular
training facility in Carcassonne,
a university cafeteria in Lyons,
the gendarmerie police station
in Altkirch, a senior citizens’ care
home in Gérardmer, the technical
support centre for Bagnols-surCèze hospital, rural senior
care homes in the Doubs and
the new Paul Valéry high school
in Paris.
Soderec also completed a
number of major projects during
the year, including the new Metz
hospital, the Haute-Auvergne
high school in Saint-Flour and
Gustave Eiffel high school in
Gannat, the psychiatric ward
of the Roanne hospital, the
agricultural school in Obernai,
210 student housing units in
Strasbourg, the emergency room
at the Versailles hospital and
medical research laboratories for
Université Paris Descartes.
CM-CIC Factor’s aim is to continue growing
in Europe, notably in Germany and Spain,
and to keep customer satisfaction at the
heart of what it does, focusing on attentiveness,
adaptability and quality.
REAL ESTATE
The Crédit Mutuel group is active in all
areas of the property market from sales,
development and trading through to
contract management, land development
and real estate management.
The main subsidiaries are CM-CIC Agence
Immobilière, CM-CIC Immobilier (Crédit
Mutuel Centre Est Europe), La Française
(Crédit Mutuel Nord Europe) and Soderec.
The housing market contracted in 2012,
with several unfavourable factors impacting
demand: rising unemployment, the elimination of various schemes (interest-free loans
for existing homes, tax benefits for investors
under the Scellier law) and still-high prices
all combined to drive sales volumes lower.
Taken all together, in 2012 the subsidiaries
made 5,500 real estate sales (down 25.5%),
mainly in new property, for a total amount
of almost €1 billion (down 27.5%)
CM-CIC Immobilier develops building sites
and housing units through Ataraxia Aménagement, CM-CIC Aménagement Foncier
(Sarest), Ataraxia Promotion and CM-CIC
Réalisations Immobilières (Sofedim). It sells
new housing units via CM-CIC Agence
Immobilière (Afedim), and manages
housing units for investors through CM-CIC
Gestion Immobilière. It also participates in
financing rounds related to real estate
development through CM-CIC Participations
Immobilières.
La Française Real Estate Manager
(La Française REM) conducts all the
property investment activities of Groupe
La Française (Crédit Mutuel Nord Europe).
A French leader in unrated property investment funds (SCPI and OPCI) with €7.8 billion
of managed assets and managing more than
3 million square metres of property assets
in over 1,200 buildings with 3,500 tenants,
this investment and third-party management
specialist is active across all segments of
the property market – offices, commercial,
business premises, residential, managed
residences – as well as in niche segments
such as winemaking.
La Française REM offers its retail customers
a wide range of products corresponding to
their various needs, including commercial
real estate investment companies, tax-efficient
real estate investment companies, real
estate investment funds and unit-linked
life insurance-eligible property investment
vehicles.
It also assists French and international
institutional investors with their real estate
projects, adapting its offering to their specific
regulatory, tax, financial and organisational
constraints, and regularly offering them
access to the outsourced management
portfolios of large French companies, as
it did with Accor Group’s F1 hotels in 2009
or Carrefour Market’s commercial portfolio
in 2011.
Motivated by the belief that sustainable
results can only be achieved if real estate
assets are managed as Socially Responsible
Investments, La Française REM has taken
the lead in the field of energy efficiency.
As proof of its commitment, it is a founding
member of the Observatoire de l’Immobilier
Durable (Sustainable Real Estate Observatory
- OID). With more than €800 million of gross
inflow in 2012, La Française REM is continuing to expand, notably through the creation
of a real estate investment company (LFP
Opportunité Immo) for retail customers
specialising in facilities for SMEs and a real
estate debt fund (LFP Créances Immobilières)
for institutional clients.
EQUIPMENT LEASING
Between them, CM-CIC Bail (Crédit Mutuel
Centre Est Europe), Bail Actéa (Crédit
Mutuel Nord Europe) and Arkéa Crédit
70 CREDIT MUTUEL GROUP
Bail (Crédit Mutuel Arkéa) manage 228,000
contracts representing total assets of
€6.5 billion, up 3.4% from 2011.
Aggregate production on 113,000 contracts
rose 3.1% to almost €4 billion, giving the
company a 15.6% share of the overall market
(up 0.5 point).
PROPERTY LEASING
In addition to medium- and long-term loan
financing, business customers are offered
specialised property leasing products through
CM-CIC Lease, a jointly-owned subsidiary
of Crédit Mutuel Centre Est Europe and CIC,
Arkéa Crédit Bail (Crédit Mutuel Arkéa)
and BIN Batiroc (Crédit Mutuel Nord Europe).
The group’s production declined by 3.6%
to €751.4 million, i.e. 12.9% of the market
(up 1.5 point from 2011), while managed
outstandings increased 6.2% to more than
€4 billion.
CONSUMER CREDIT
The consumer credit offering marketed
through the network is rounded out by
those of specialised subsidiaries Targobank
Germany, Cofidis, which has operations in
eight European countries in addition to
France, Financo, a Crédit Mutuel Arkéa subsidiary, and Sofemo, which is jointly-owned
by Crédit Mutuel Centre Est Europe and CIC.
Outstanding loans increased by 5.2% to
€35.7 billion thanks to impetus from the
group’s specialised subsidiaries, making it
the fourth-largest consumer credit provider
in Europe.
NO. 4 IN EUROPE
FOR CONSUMER
CREDIT –
THAT’S WHAT
MAKES THE
DIFFERENCE
BANKINSURANCE
INSURANCE, THE GROUP’S
SECOND-LARGEST BUSINESS
Insurance is the second-largest business for Crédit Mutuel, the leading non-life bankinsurer
in France. In 2012, it generated net banking income of €1,873 million, i.e. 12.3% of the total,
and net profit, group share of €782 million (36.4% of the total).
In 2012, the group’s insurance subsidiaries
managed some 31.2 million policies, of which
26.6 million non-life and 4.6 million life policies,
on behalf of 12.4 million policyholders.
They collected aggregate premiums of
€11.8 billion, down 1.5% from 2011, due
to a drop in life insurance business.
CRÉDIT MUTUEL GROUP
KEY INSURANCE FIGURES 2012
No. 1 in non-life bankinsurance
12.4 million policyholders
31.2 million policies
In € millions
Net banking income
Gross operating profit
Net profit, group share
1,873
1,366
782
2012 premium income:
€11.8 billion
+4.6% for risk insurance
+8% for auto insurance
+9.5% for home insurance
+2.2% for personal insurance
A GROWING INTERNATIONAL
FOOTPRINT
GACM expanded its
international footprint in
2012 with the acquisition of
Spain’s Agrupació Mútua,
paving the way for further
development in that country
and allowing its distribution
networks and partners there,
72 CREDIT MUTUEL GROUP
Targobank Spain and
RACC Seguros, to offer
a comprehensive range
of insurance products.
This new subsidiary will also
bolster GACM’s expertise
in health insurance.
Premium income on life insurance policies
was affected by various factors – the economic
crisis, competition from livret A and LDD
regulated savings accounts and uncertainty
about taxes – and ended the year down
4.6%, at €7.6 billion.
The risk insurance business continued
to grow, with a 4.6% increase in premium
income to €4.2 billion. Premium income at
the auto and home segments trended
higher, like in 2011, with respective rises of
8% and 9.5%.
Personal insurance was up by 2.2%, reflecting
efforts made by the network to promote
health and personal protection policies.
The insurance activity is carried out through
Groupe des Assurances du Crédit Mutuel
(GACM), Suravenir and Suravenir Assurances and Assurances du Crédit Mutuel
Nord (ACMN).
Groupe des Assurances du Crédit Mutuel,
the standard bearer of the bankinsurance
concept invented by Crédit Mutuel in 1970,
is nearly 53% owned by Banque Fédérative
du Crédit Mutuel, 20.5% by CIC and 26.7%
by the Crédit Mutuel federations. GACM’s
range of insurance products is marketed
by 15 Crédit Mutuel federations and all of
the CIC regional banks, which represent
more than 5,000 sales outlets in total.
Most of the contracts in the ACM range have
now been made available on the insurance
sections of the network’s remote banking
sites, thus perfectly complementing the
service these banks provide.
A BANK OFFERING RISK, HEALTH AND
PERSONAL INSURANCE –
THAT CHANGES EVERYTHING
Although 2012 was characterised by difficulty
and uncertainty, GACM was able to maintain
its positions and continue to expand its
business both in France and abroad.
In terms of activity, a declining savings rate
and an increase in the ceiling on regulated
savings account both worked against life
insurance and insurance savings products,
such that consolidated insurance premium
income only rose by 0.7% to €8.3 billion,
in a market that was down by 4%.
Premiums for life insurance and insurance
savings products declined by 2%, but net
intake remained positive, and contributed
to a 3.9% rise in assets under management.
With premium income up by more than
5.2%, non-life insurance products continued
to drive growth. The auto and fire and special
perils segments (mainly home insurance)
significantly outperformed average growth
in the market with gains of 7.7% and 8.8%,
respectively. Personal risk insurance recorded
an increase of 3.3%, fuelled by personal
protection and borrowers’ coverage.
BANKINSURANCE
The overall portfolio of products for ACM,
across all segments, rose to 24.0 million,
up from 23.5 million in 2011, for 7.9 million
policyholders (200,000 increase over one year).
Thanks to a generally favourable total loss
experience and in spite of the cold snap during
the winter of 2012, underwriting income
from property insurance remained strong.
Despite a higher tax burden, net profit rose
to €603 million, from €421 million in 2011.
GACM ended the year with equity of €7.6
billion (up 12.5%) and a healthy balance
sheet, leaving it confident that it will be able
to address the challenges ahead in 2013,
particularly regarding compliance with
Solvency 2 prudential rules, the impacts
of which have not been fully defined at this
stage.
Suravenir, the life and personal insurance
subsidiary of Crédit Mutuel Arkéa, specialises
in the design, production and management
of personal life insurance and company
retirement savings products. It manages
€26.3 billion of capital and €31 billion
of capital-at-risk for personal insurance,
on behalf of 2.6 million policyholders with
3.5 million contracts.
With four major distribution subsidiaries,
Suravenir offers the expertise of its 260 life
and personal insurance specialists, along
with its know-how and responsiveness,
through four channels:
• The banking network, comprising Crédit
Mutuel de Bretagne, Crédit Mutuel du
Sud-Ouest, Crédit Mutuel Massif Central
and Arkéa Banque Entreprises et Institutionnels;
• A “white label” channel: Fortuneo, Banque
Accord, Fidelity, LinXea and Financo;
• A channel dedicated to independent financial
advisers and independent brokerage networks (more than 700 active independent
financial advisers);
• Brokers specialising in company retirement
savings.
74 CREDIT MUTUEL GROUP
Premium income, 27% of which came from
outside the Crédit Mutuel Arkéa group,
was unchanged at €2.3 billion in 2012.
Net insurance income rose 6% to €256 million,
a new record for the company.
Net profit surged 34% to €150 million, also
a record high. Excluding non-recurring items,
net profit would have been €126 million, the
highest level in the company’s history.
Suravenir strengthened its financial situation,
ending the year with a 124% solvency ratio.
New partnerships and products were added
in life insurance and personal protection,
and the existing ranges were upgraded.
These business trends and results confirm
the wisdom of the company’s choices:
a multi-channel distribution strategy and
prudent management, based on risk
dispersion and control, the goal being to
offer satisfactory returns in relation to risks
incurred.
The company is pursuing its development
and management strategy, strengthening
its external partnerships and enhancing
its offer.
Suravenir Assurances, a wholly-owned
subsidiary of Crédit Mutuel Arkéa, manages
more than 1.8 million contracts covering a
comprehensive range of non-life insurance
products.
The company signed almost 250,000 new
core contracts in 2012. Its premium income
exceeded €297 million, for net profit of
€20.8 million.
One highlight of 2012 was the launch of the
new Crédit Mutuel Arkéa auto insurance
offer, which earned praise from the trade
press.
This modular product meets the specific
needs of drivers (protection of themselves,
their vehicles and their mobility). Policyholders can choose their level of service in
each area.
Early in September, Suravenir Assurances
and Novelia introduced an innovative product
called e.NOV Coup Dur, which includes
“Accidents de la Vie” plus coverage in the
event of work stoppage or redundancy.
The company remained committed to promoting road safety, notably by distributing
breathalysers and acquiring a new driving
simulator for the Ile et Vilaine committee.
External networks – Novelia chief among
them – contributed 44% of this activity’s
growth.
They now make up 22% of the total portfolio.
Crédit Mutuel Nord Europe manages more
than two million life and non-life contracts
through two subsidiaries: ACMN Vie and
ACMN Iard.
In a difficult economic and financial environment that was relatively unfavourable
for life insurance, ACMN Vie continued to
record strong sales in 2012.
Premium income came to €868 million.
Contracts distributed by Crédit Mutuel
Nord Europe now account for more than
52% of new business.
Managed funds amounted to €10.4 billion,
spread over more than 1,015,000 contracts
(up 7% from 2011). The share of unit-linked
contracts rose to 12% from 10% in 2011,
notably reflecting the successful launches
of structured products with CMNE.
The company upgraded a number of its
products over the course of the year, including
ACMN Avenir (personal protection options
now available over the life of the contract)
and Famili Sécurité (minimum insured
amount raised from €10,000 to €15,000),
and CMNE’s borrowers’ insurance range
was overhauled.
Business picked up again in Belgium thanks
to the launch of a new product, BKCP Horizon,
and the new local office that opened its
doors early in 2013. The goal is to provide
BKCP with more support for the distribution
of life insurance products in Belgium.
times over the year, both for their comprehensive and innovative design and their
steady performances.
Sales of ACMN Vie and ACMN Iard personal
insurance contracts were also very satisfactory
in 2012, with the signing of more than
9,000 new health top-up plans and more
than 33,000 new Famili Sécurité and
Assurance des Accidents de la Vie family
insurance contracts.
In 2012, ACMN Iard posted excellent results,
with a 7.4% increase in premium income to
€134.3 million and net profit that reached
€8.9 million. More than 27,000 new core
contracts were signed for auto insurance
and more than 24,000 for comprehensive
homeowners’ policies (up 5.1%).
INSURANCE
WHEN PERFORMANCES MEET THE
EXPECTATIONS OF OUR MEMBERS
AND CUSTOMERS
THAT BUILDS CONFIDENCE
ACMN VIE’s products were once again
recognised by the financial press numerous
Annual Report 2012
75
OTHER BUSINESSES
BROADER EX PERTISE
FOR A GROUP THAT IS DIVERSIFYING
ITS SKILLS AND ANTICI PATING NEEDS
76 CREDIT MUTUEL GROUP
Annual Report 2012
77
OTHER BUSINESSES
CORPORATE
AND INVESTMENT
BANKING
KEY FIGURES
In € millions
Net banking income: 1,139
Gross operating profit: 806
Net profit, group share: 484
Some activities of group-wide strategic importance, such as corporate
and investment banking, asset management and wealth management
and technological services, are largely carried out through shared entities
such as CM-CIC Asset Management, CM-CIC Epargne Salariale, CM-CIC Securities,
CM-CIC Capital Finance and CM-CIC Marchés.
In 2012, this business generated net banking income of €1.1 billion, or 7.5% of
the overall total, and net profit, group share of €484 million, or 22.5% of the total.
Corporate banking covers all the banking
and related services provided to companies
with annual revenues of more than €50 million
and to institutional clients.
Investment banking covers capital markets,
merchant banking, venture capital, growth
capital, broking and trading.
Corporate banking, capital markets activities
and investment banking are carried out
by Banque Fédérative du Crédit Mutuel
(BFCM), the holding company of Crédit
Mutuel Centre Est Europe, and Crédit
Mutuel Arkéa.
After being severely restricted in the latter
part of 2011, access to liquidity gradually
78 CREDIT MUTUEL GROUP
eased in the first quarter of 2012. Demand
for bank financing from large companies
nonetheless contracted, due to their
positive cash positions and ongoing
and sustained disintermediation efforts,
leading them to turn increasingly to
the fast-expanding bond market. Thanks
to the close ties it maintains with its
customers, the group was able to play
an important role in numerous issues,
including by Casino, Vinci, EDF and
Foncière des Régions. At the same time,
the group continued to implement its policy
of supporting customers. The share of
bilateral loans issued rose in 2012 at the
expense of syndicated financing, which
ended the year sharply lower.
The group’s financial solidity, confirmed by
the rating agencies, translated into further
growth (more than €5.7 billion) in overall
inflows from large corporate and institutional
investors.
Sales efforts also continued to focus on the
development of the group’s cross-functional
expertise. In employee benefits engineering,
for instance, it set up Perco and took over
the management of employee retirement
bonuses, while Cofidis began financing mobile
phones for some customers.
The group continued its expansion in means
of payment, a core focus of its sales policy.
An increasing number of its bids have been
selected by large corporates, particularly
institutional investors, as they migrate
to SEPA means of payment. It is also developing ever more sophisticated technology
products, allowing it to offer innovative
and/or pan-European electronic money
solutions.
Third-party and own-account capital markets
activities are carried out by CM-CIC
Marchés, which has a shared trading room
with BFCM and CIC and is the group’s main
operator in this field, and by Crédit Mutuel
Arkéa.
In 2012, the group conducted its refinancing
activities in a market that was calmer on the
whole, though the year was divided into two
distinct phases.
The first part of the year was characterised
by high tension, like 2011, with a continuation
of the sovereign and bank debt crisis in
Europe. Progress made on the political
front, together with the additional measures
taken by the ECB in the summer, restored
investor confidence, particularly with regard
to the viability of the euro zone.
BE A DYNAMIC
PARTNER FOR
REGIONAL
ECONOMIES –
THAT’S
OUR GOAL
Thanks to its largely customer-focused strategy and solid fundamentals, Crédit Mutuel
group was able to maintain its good ratings at
the international level, ensuring particularly
favourable relations with lenders throughout
the year.
The reduction in market debt, made possible
in particular by continued improvement
in the loan-to-deposit ratio, also led to a
decrease in medium- and long-term funding
needs from investors outside the group.
Efforts to diversify medium- and long-term
resources continued in 2012, with Crédit
Mutuel-CIC Home Loan SFH carrying out
Annual Report 2012
79
OTHER BUSINESSES
two major issues: €1,250 million over 12 years,
issued in January under challenging market
conditions and without the support of
the ECB, and USD1,000 million issued in
November, of which 70% was placed with
investors of US origin. Most medium- and
long-term refinancing was nonetheless
carried out with resources raised by BFCM.
In terms of liquidity management, (net)
short-term resources represented only
30% of funds raised on the market at 31
December 2012 (compared with 37% at the
end of 2011). The group thus significantly
reduced its dependence on the money
market, and would be able to ride out a total
closure for more than 12 rolling months
thanks to the transferable and ECB-eligible
liquid assets held. The composition and size
of this liquidity reserve are very closely
monitored and a detailed roadmap has
been put into place to respond to the future
liquidity ratio rules of Basel 3.
SERVICES FOR BUSINESSES,
MANAGEMENT COMPANIES AND
INSTITUTIONAL INVESTORS
CM CIC Securities
1,200 institutional clients in
Europe
European securities covered
by research teams
€16.4 billion in assets
Investment company CM-CIC Securities
covers all the needs of corporate customers,
asset management companies and institutional investors via three businesses. The
corporate department is the business centre
for the group’s financial transactions business.
It relies on the expertise of equity finance
(CM-CIC Capital Finance) and specialised
financing teams, and benefits from the
sales coverage of major accounts and the
network including BECM, CIC Banque
Privée and CIC Banque Transatlantique.
In 2012, the department participated in
25 bond offerings, including 17 as bookrunner.
It also played a role in the surge in private
bond issues, managing all phases of three
placements (Cofitem, Foncière des 6e et
7 e arrondissement and RCI Banque).
The department carried out an initial public
offering for Nanobiotix and capital increases
for Peugeot, GL Events and Netbooster, and
co-managed Havas’ public share buyback.
It also organised the delisting of Foncière
Massena and Adverline. Lastly, the
department offers issuer services (financial
communication, liquidity contracts and
share buybacks, financial registrar services
and securities service).
As an account depository/custodian, CM-CIC
Securities serves 114 asset management
companies and manages 27,715 individual
accounts and 288 mutual funds, representing
€16.4 billion in assets. During the year,
80 CREDIT MUTUEL GROUP
the investment firm welcomed five new
asset management companies, attracted by
the expertise of its staff, the quality of its
account-keeping ERP, SOFI, and CM-CIC’s
financial solidity. CM-CIC Securities, a trader,
clearer and account depository/custodian,
addresses the needs of institutional investors,
private asset management companies and
corporate customers. It also negotiates
routing orders for the retail customers
of the Crédit Mutuel and CIC networks on
the market.
A member of ESN LLP (European Securities
Network- Limited Liability Partnership),
it can trade on behalf of its clients in all
European and North American equity markets
as well as in numerous emerging markets.
ESN LLP has a research team of 110 analysts
and strategists covering 750 European
securities, and a staff of 170 for sales and
trading across Europe. CM-CIC Securities
itself has 30 analysts and strategists based
in France and 30 sales staff in Paris and
Lyons, four in London and nine in New York
(GSN North America). It also has a sales staff
of five for index, equities and agricultural
commodity derivatives, and nine sellers and
traders for straight and convertible bonds.
The company offers high-quality research on
US and Canadian equities and commodities,
thanks to the exclusive distribution agreements
signed for Europe with Needham & Co
(an independent US investment bank based
in New York), Valeurs Mobilières Desjardins
(a subsidiary of Mouvement des Caisses
Desjardins, the sixth-largest financial institution in Canada) and Afrifocus Securities
(South Africa’s second-largest independent
broker). In 2012, CM-CIC Securities organised
more than 300 company and analyst
presentations and seminars in France and
abroad.
Commercial bank Arkéa Banque Entreprises
et Institutionnels (ABEI) houses all of the
expertise Crédit Mutuel Arkéa group offers
to corporate customers, local authorities,
institutional investors and real estate
developers. Its range of products and
services is broad and comprehensive: cash
management, financial engineering and
leasing, insurance, financing, leasing,
factoring and private equity.
With upwards of €300 million invested in
the equity of more than 300 companies,
AB EI is d emonstrating the group’s
commitment to supporting regional
companies over the long term.
GROWTH CAPITAL
With nearly €2.7 billion in managed capital
and a portfolio of 600 companies, CM-CIC
Capital Finance, Crédit Mutuel-CIC’s national
vehicle for capital financing transactions
(investment and advisory services), is
the leading bank-capital based investor
in France.
It makes equity investments ranging
from €1 million to €100 million via a
comprehensive range of services (venture
capital, growth capital, buyout capital and
M&A advisory services), enabling Crédit
Mutuel-CIC customers to benefit from
active support for their domestic and
international growth projects.
The company and its subsidiaries (CM-CIC
Investissement, CM-CIC Capital Innovation,
CM-CIC Capital Privé, CM-CIC LBO Partners
and CM-CIC Conseil) employ nearly 110
people.
The past year was CM-CIC Capital Finance’s
first full year of operations, following
the reorganisation and merger of 2011.
In a difficult economic climate, particularly
after the summer, and an environment that
was not conducive to value creation by
companies, CM-CIC Capital Finance proved
resilient in terms of business levels, portfolio
performances and profitability.
Almost €200 million were invested in the
capital of 118 projects, of which about
two-thirds in growth capital. Two specific
projects were carried out, including a €25
million investment in the Alsace Croissance
regional investment fund.
On the international front, the partnership
with Mouvement des Caisses Desjardins was
finalised with the creation early in 2013 of
the Emerillon Capital fund (CAD50 million).
The portfolio churn rate for the own-account
portfolio was high, with sale proceeds of
€271 million, including €100 million of
capital gains (taking into account sale
provision writebacks), demonstrating the
quality and resilience of the portfolio
investment lines.
At 31 December 2012, CM-CIC Capital
Finance’s own-account management portfolio
stood at €1.8 billion, representing about 500
stakes in the capital of Crédit Mutuel-CIC
group corporate customers. This portfolio is
diversified by sector, and a large share
corresponds to growth capital.
Despite the high level of sales and in a
relatively unfavourable environment,
CM-CIC Capital Finance was able to rebuild
its stock of unrealised capital gains on the
portfolios, helping to boost the company’s
net income per IFRS.
As regards third-party management,
CM-CIC Capital Privé completed a new
financing round for a regional investment
fund (FIP) and an innovation investment fund
(FCPI), through which it raised €35 million
and invested €28 million. CM-CIC LBO
Partners (management of two midcap LBO
capital funds) completed two major sales
for €65 million.
The advisory business completed seven
transactions during the year.
CM-CIC Capital Finance posted net income
per IFRS of €68 million, for a year-on-year
increase of almost 20%.
A number of other dedicated federal
structures also operate in the growth capital
market: Federal Finance Gestion, Arkéa
Capital Investissement, FCPR CM Arkéa,
Océan Participations, CM-CIC Participations
Immobilières and Siparex Proximité
Innovation. Investments increased to
€125 million during the year, from €84
million in 2011, taking net p or tfolio
investments to more than €530 million from
€350 million at the end of 2011.
Number one bank capital-based investor in France
INTERESTS IN MORE
THAN 600 OF THE LARGEST
FRENCH COMPANIES
CM-CIC Capital Finance meets all
the capital financing needs of
companies. It supports the projects
of executives over the long term,
providing tailored solutions for every
transaction, whether it requires
venture capital, growth capital, LBO
capital or M&A advisory services.
The group manages close to
€2.7 billion of capital in France
and abroad.
Taken together, its portfolios
represent interests in 620 affiliated
companies, in which €2.1 billion
of capital is invested, including
€1.7 billion for the group’s own
account and €0.4 billion for
third parties.
A REAL
PARTNER FOR
THE ECONOMY –
THAT’S WHAT
WE ARE
Annual Report 2012
81
OTHER BUSINESSES
ASSET MANAGEMENT AND
WEALTH MANAGEMENT
KEY FIGURES
In € millions
Net banking income: 664
Gross operating profit: 198
Net profit, group share: 121
With net banking income of €664 million and net profit, group share of €121 million,
the group’s asset management and wealth management businesses made very similar
contributions to overall NBI (4.4%) and net profit, group share (5.6%).
ASSET MANAGEMENT
Asset management covers fund management, employee savings plans and, for specific
network customer groups, securities and
custodian services.
This activity is carried out mainly through
CM-CIC Asset Management, the fund
management specialist that provides the
Crédit Mutuel and CIC banking networks
with a broad, innovative range of financial
products, CM-CIC Gestion for discretionary
and advisory management, and specialised
subsidiaries Federal Finance, a Crédit
Mutuel Arkéa subsidiary, and Crédit Mutuel
Nord Europe subsidiary La Française, a
multi-specialist asset manager serving
institutional customers, intermediaries and
private individuals.
(1) Managed through mutual funds (including master
funds), discretionary and advisory management
and employee retirement savings plans.
82 CREDIT MUTUEL GROUP
CM-CIC Epargne Salariale and Federal
Finance Banque, subsidiaries specialised
in employee savings schemes, offer a variety
of products catering for corporate customers
of all sizes, notably very small companies
(i.e. with fewer than ten employees).
At end-2012, assets under management(1)
were up sharply at €103.4 billion (+16.3%),
and comprised:
– €84.5 billion in mutual fund assets managed
by the specialised subsidiaries,
– €12.5 billion under discretionary and
advisory management for private customers
and via delegation to the group’s insurance
subsidiaries, and
– €6.4 billion in employee savings.
Combined with the SCPI property investment
business (€7.8 billion overall for the group),
assets under management came to €111.3
billion.
The asset management subsidiaries earn
regular recognition for their consistent
performances and first-class contracts.
RECOGNISED EXPERTISE
IN ALL CUSTOMER SEGMENTS -
THAT’S OUR STRENGTH
WEALTH MANAGEMENT
Through its network and specialised
subsidiaries in France, Luxembourg and
Switzerland, the group provides a comprehensive range of advisory and wealth
management services for high net worth
customers with financial assets in excess of
€1 million.
CIC Banque Private Banking is the umbrella
organisation for Crédit Mutuel-CIC’s global
private banking activities, which are conducted
mainly in Europe (Luxembourg, Switzerland
and Belgium) and Asia (Singapore and
Hong Kong).
The group’s French business is handled by
the CIC Banque Privée business line, which
provides high-end services to company
managers, CIC Banque Transatlantique,
which offers a range of customised solutions,
including in private banking, principally
to French citizens residing abroad, DublyDouilhet SA, and Nord Europe Private
Bank SA, operating as a subsidiary of Crédit
Mutuel Nord Europe.
Annual Report 2012
83
OTHER BUSINESSES
TROPHIES AND PERFORMANCE AWARDS, 2012
CRÉDIT MUTUEL GROUP RECOGNISED
THROUGH MANY AWARDS
The group’s asset management
companies performed particularly
well in 2012.
Their main awards included:
Awards for the
management teams
• EUROPEAN FUNDS TROPHY PALMARÈS FUNDCLASS
Management companies evaluated
from 31/07/2007 to 31/12/2011
CM-CIC AM, best French
management company in 2012
41 to 70 rated funds category,
period of four years
• TROPHÉES DU FORUM GESTION
D’ACTIFS – L’AGEFI 2012
La Française AM, Management
company of the year
• VICTOIRES DES SICAV –
LA TRIBUNE
Performances to 31/03/2012
CM-CIC AM, First prize for banks
over five years
(Source Europerformance – A Six
Company)
• TROPHÉES D’OR – LE REVENU
Performances to 31/03/2012
CM-CIC AM, Best overall
performance over three years
(retail banks)
(Source Europerformance – A Six
Company)
• CORBEILLES – MIEUX VIVRE
VOTRE ARGENT
Performances over five years to
29/06/2012
Corbeille Long Terme – 1st place
for Federal Finance (retail banks)
Corbeille d’Or – 3rd place for CIC
range (retail banks)
(Source Europerformance – A Six
Company)
84 CREDIT MUTUEL GROUP
Awards for
equity products
• TROPHÉES D’OR – LE REVENU
Performances to 31/03/2012
Best international equity funds
range over three years (retail
banks) for Federal Finance
(Source Europerformance – A Six
Company)
Awards for
bond products
• MORNINGSTAR FUND AWARDS
– FRANCE
Performance over one year to
31/12/2011
CM-CIC AM, Best group for broad
ranging bond funds for the third
year in a row
• TROPHÉES D’ARGENT –
LE REVENU
Performances to 31/03/2012
CM-CIC AM, Best range
of three-year bonds (retail banks)
(Source Europerformance – A Six
Company)
• PALME D’OR –
INVESTIR MAGAZINE
Performances to 31/12/2011
Schelcher Prince Gestion,
a Federal Finance subsidiary:
Best one-year bond
management.
• LIPPER FUND AWARDS –
FRANCE
Performances to 31/12/2011
CM-CIC AM, Best euro mediumterm bond fund over ten years
Union Obli Moyen Terme
• TROPHÉES D’ARGENT –
LE REVENU
Performances to 31/03/2012
CM-CIC AM, Best euro bond fund
over ten years (all categories)
Union Obli moyen terme
(Source Europerformance – A Six
Company)
• TROPHÉES D’OR – LE REVENU
Performances to 31/03/2012
CM-CIC AM, Best euro bond fund
over three years (all categories)
Union Taux Variable
Source Europerformance –
A Six Company)
• VICTOIRES DES SICAV –
LA TRIBUNE
Performances to 31/03/2012
CM-CIC AM, First prize in euro
medium-term bond category over
five years
(Source Europerformance – A Six
Company)
Awards for diversified
equity and bond funds
• GRANDS PRIX DE LA GESTION
D’ACTIFS – L’AGEFI
Performances from 3/07/2009
to au29/06/2012
CM-CIC AM, Best fund in “Euro
diversified” category over three
years
Stratigestion Equilibre
CM-CIC AM, Best “French equity”
fund over three years
Union France
(Source l’Edhec Risk et
Europerformance – A Six Company)
Transparency labels
“Novethic” SRI label 2012
• CM-CIC MONÉ IRS
• CM-CIC OBLI
• ISRCM-CIC ACTIONS ISR
• LA FRANÇAISE AM FOR SRI
RATE PRODUCTS RANGE
MORE THAN €200 BILLION IN
SECURITIES UNDER CUSTODY
CM-CIC Titres is CM-CIC’s centre of
expertise for account keeping and custody,
fund centralisation and financial services
for issuers. It provides these services to all
Crédit Mutuel federal banks, CIC banks and
group subsidiaries – including CM-CIC AM,
CM-CIC Gestion, CM-CIC Securities and
the wealth management arm - as well as the
bank’s major corporate and institutional
customers and its ACM insurance division.
Boreal, a BFCM subsidiary, provides
the same range of services to non-group
customers, including retail banks and
private banks, investment companies and
third-party management companies in
France and abroad.
Backed by the group’s technological
capabilities and prowess and its recognised
business-line expertise, these products and
services (trading website, real-time services,
email and SMS alerts, etc.) have a strong
customer focus and can be adjusted and
tailored to suit individual needs.
After some periods of turbulence, confidence
was ultimately restored in the main financial
markets in 2012. Most indices ended the
year higher, though difficulties stemming
from the economic and financial crisis
weighed heavily on activity levels.
The number of active securities accounts
declined by 4%. However, the amount under
custody increased by 9.4% to €237 billion,
thanks in large part to investments by funds
in negotiable debt securities.
With the exception of foreign equity index
transactions, which rose by 16%, the year
ended on an overall drop in volumes, with
notable declines in securities transactions
on Euronext (-21%) and in mutual funds
(-8.7%).
The balance of total purchases and sales
was a negative €0.3 billion, with steep
declines in equities (down €4.4 billion) and
bonds (down €5.7 billion), a slight uptick
for funds (up €1.2 billion) and a surge in
negotiable debt securities (up €8.4 billion).
While the group prepared for regulatory
changes (2013 Finance Act, financial
Annual Report 2012
85
OTHER BUSINESSES
VOTED BEST MANAGEMENT
COMPANY IN 2012
Agefi Asset Management Forum, October 2012.
A multi-specialist asset
manager with Crédit Mutuel Nord
Europe as its largest shareholder,
La Française AM, which changed
its name to La Française on
1 January 2013, manages funds
based on convictions and puts
customer interests and
satisfaction first. A responsible
company, its investment
philosophy is based on TM
dissymmetric management:
drive long-term capital appreciation
with a greater focus on protecting
capital when markets are down
than on outperforming during
upward swings, thanks to flexible
asset allocation and a risk
identification and control
framework. The company
expresses its values through its
CSR policy and SRI product range.
La Française offers innovative
investment solutions across all
asset classes. La Française des
Placements manages securities
through six centres of expertise.
Real estate assets are managed
transactions tax, the Dodd Frank Act, Qualified
Investor rules) and upgraded tools used by
its network and subsidiaries, work continued
on other major projects as well during the
year:
– The transfer of the “Coupons” activity from
Cergy to Nantes, with additional staff
coming on board from CMLACO, CIC Ouest
and CM-CIC Securities;
– Cross-divisional projects that are indispensable to the group’s “Convergence 2014”
plan;
– Ongoing international deployment of
technical tools with overhauls of certain
86 CREDIT MUTUEL GROUP
through La Française Real Estate
Managers.
In 2012, La Française spun off
its shareholding purchasing
activity into Next AM.
At the end of 2012, La Française
managed more than €37 billion
in assets for a diversified
customer base including
institutional investors, retail
banking networks, platforms,
brokers and private clients, in
France and abroad. Net inflows
reached €1.6 billion for the year,
split evenly between real estate
assets and securities. La Française
was voted “Asset Manager of
the Year” by a panel of more
than 400 professionals during
the 11th annual Agefi Asset
Management Forum.
In 2013, it plans to expand
its investment solutions offer
by creating a new business
line specialising in financial
engineering and fund
management applying trading
room techniques.
applications and work to prepare for
the migration of Monabanq, Dubly and
Targobank Spain and Germany.
The priorities for 2013 are:
– Further ramp-up of the Nantes production
site with the relocation of the “Transfer”
activity. More than 50 people will ultimately
be based at this site;
– The “Internationalisation” plan, with the
completion of application overhaul projects
and ongoing work to migrate Targobank
Spain and Germany;
– Start of migration of Monabanq and
Dubly.
ProCapital Securities Services, a subsidiary
of Crédit Mutuel Arkéa with operations
in France and Belgium, is a provider of
securities services to financial institutions portfolio management companies, private
banks, retail banks, insurance companies
and online brokers and banks – that require
flexible solutions ranging from account
keeping and transaction execution services
on behalf of customers to the development
of transactional websites. ProCapital Securities
Services provides its institutional customers
with quality-assured service thanks to its
integrated platform based on cutting-edge
technology. Crédit Mutuel Arkéa boosted its
offering in 2012 with the creation of Arkéa
Banking Services, a white-label banking
services subsidiary dedicated to customers
in the asset management, insurance,
payment services and retail sectors.
Annual Report 2012
87
OTHER BUSINESSES
TECHNOLOGICAL
SERVICES
A comprehensive range of technological services – IT, payment instrument-related,
telephony, remote surveillance and document dematerialisation – is available
to the Crédit Mutuel group and its customers.
INFORMATION TECHNOLOGY
This activity, focused on ongoing optimisation,
is organised around two information system
platforms provided by Euro-Information
and Crédit Mutuel Arkéa.
Euro-Information, the holding company
for Crédit Mutuel Centre Est Europe’s
technology subsidiaries, provides financial
and technical services that meet the IT needs
of the group’s various entities: Crédit Mutuel
federations, CIC banks, insurance subsidiaries,
business line centres and other subsidiaries.
In this context, Euro-Information acts as a
centralised procurement and financing
platform and also manages relations with
suppliers, the logistics of leasing and
selling equipment and software, payment
authorisations and remote deposits and
banking channels. Euro-Information is
supported by dedicated technical structures
88 CREDIT MUTUEL GROUP
in charge of operating, developing and
maintaining the group’s IT resources and
developing telephony and security-related
activities, document dematerialisation
and card and cheque processing and
personalisation. Euro-Information Production
serves as an information systems platform
for 15 Crédit Mutuel federations and for all
of the CIC banks.
This information system is connected to
stock market networks, electronic payment
systems, and the Target2 settlement system,
as well as data exchange systems such as
STET (Système technique des échanges et des
traitements) for SEPA and European Bank
Area (EBA) transactions, and, of course,
international systems. It is supported
by four high-security, high-performance
interconnected IT centres in Lille, Lyon, Paris
and Strasbourg, a dedicated help centre, a
broadband network and Euro-Information
Développement, a company dedicated to
the development and maintenance of the
applications used by Crédit Mutuel Centre
Est Europe and its partner federations and
subsidiaries.
Since June 2010, the Euro-Information teams
have also been handling IT production and
applications maintenance for Targobank.
Euro-Information Services and Sicorfé
Maintenance install and maintain the
workstations, IT networks, electronic
payment terminals, ATMs and telephony
and video surveillance equipment.
The Arkéa platform is shared by the three
Crédit Mutuel Arkéa federations (Crédit
Mutuel de Bretagne, Crédit Mutuel du
Sud-Ouest and Crédit Mutuel du Massif
Central).
MOBILE TELEPHONY
Crédit Mutuel’s involvement in mobile
telephony provides a new channel for
bankinsurance and services and constitutes
a new approach to payment instruments.
In 2012, NRJ Mobile, which is 95% owned by
Euro-Information and 5% by NRJ Group,
changed its name to EI Telecom.
EI Telecom uses the services of two network
operators, Orange and SFR, with lines being
opened depending on the tariffs negotiated
with host operators or, in some cases,
depending on the plan subscribed to,
allowing the group’s members and customers
to benefit from the best terms available.
In a fiercely competitive market, EI Telecom
grew its active customer base to 1.1 million
in 2012, thanks in part to the broadening
of its offer. The company also set up as a
Annual Report 2012
89
OTHER BUSINESSES
mobile virtual network operator (MVNO)
during the year, which will allow it to
maintain its marketing independence going
forward and its ability to purchase airtime
at the lowest possible prices. EI Telecom also
continued to expand into white labels with
the launch of two new offers: Cofidis Mobile
and Blanche-Porte Mobile.
The company will step up its development
in 2013 by further integrating banking,
insurance and security services. These
services will be offered alongside a range
that is adapted to the new market
environment, with people increasingly
opting for contract-free plans with no phone
purchase required, along with more
traditional ones involving contracts and
phone subsidies.
PAYMENT SERVICES
Payment-related services are managed
mainly through the following specialised
subsidiaries:
Euro P3C, a dedicated entity that handles
the personalisation of cheques, cards and
other electronic components and which
works for all Crédit Mutuel and CIC entities
as well as for outside customers and
partners. Its two production sites enable it
to offer permanent back-up.
Euro TVS (Traitement des Valeurs et
Services) is number two in France in batch
cheque processing. It provides processing
services to Crédit Mutuel Centre Est
Europe-CIC and partner federations, large
retail groups, institutional customers and,
more generally, any large document issuer
wishing to dematerialise documentary and
financial exchanges. Euro TVS is also
participating in the group’s project to offer
invoice management services to customers.
Thanks to its seven processing centres in
Paris, Lyon, Nantes, Toulouse, Lille, Laval
and Marseille, Euro TVS is able to provide a
genuinely local service to its customers.
Euro Télé Services (ETS) is a 24/7 incoming
call centre, providing top-quality service to
Centre Est Europe-CIC, partner federations
and their respective customers (cardholders,
merchants and NRJ mobile users).
90 CREDIT MUTUEL GROUP
RESIDENTIAL REMOTE
SURVEILLANCE,
TELEMARKETING
AND DOCUMENT
MANAGEMENT
Crédit Mutuel is the French leader in
residential remote surveillance through
Euro-Protection Surveillance (EPS), which
provided services to more than 283,000
subscribers (up 16% from 2011) and had a
30% share of the market as at end-2011.
With its “Protection Vol” solution, CM-CIC has
made remote surveillance more affordable
for its customers thanks to innovative and
competitive offers combining equipment
and services.
Euro Information Direct Services (EIDS),
a CM-CIC company, plans and executes
telemarketing campaigns for Crédit Mutuel
Centre Est Europe-CIC and partner
federations. These campaigns use outgoing
call centres with the aim of winning new
customers and boosting the loyalty of
existing ones.
Euro GDS (Gestion de Documents et
Services) is CM-CIC’s dedicated production
unit for indexed digital documents, which
are fed into its central electronic document
management system and those of the
group’s partners.
The company has developed expertise in
the batch production of electronic documents,
and also offers paper document storage
services. Euro GDS now handles most of
CM-CIC’s document storage.
In 2012, Euro GDS dematerialised more
than 21 million documents, a 17% increase
from the previous year, representing
94.4 million pages, or 73.1 million scanned
sheets of paper.
Keynectis, the European leader in secure
technologies and services, is a French
software company specialised in identity
and digital exchange security. It has more
than 12 years’ experience of offering a
comprehensive range of solutions for
managing digital identities and securing
documents and electronic transactions on
behalf of governments, industrial companies,
financial institutions and, ultimately, end
users worldwide.
Protecting more than 25 million digital
identities and securing 200 million electronic
transactions every month, Keynectis ranks
among the top global providers of secure
digital data exchange services.
As an operator of electronic certification
services, it also sets up secure areas and
issues electronic certificates that comply
with the most exacting reliability and
security standards and make it possible, for
example, to identify individuals, legal entities,
web servers and software components.
REMOTE SURVEILLANCE
EPS PROTECTING
NEARLY ONE IN THREE
INDIVIDUALS IN FRANCE
Crédit Mutuel’s home and business remote surveillance solutions
are a prime example of its commitment to providing top level service
and innovative products that are tailored to customers’ needs.
With a 30% market share and 283,000 subscribers in 2012,
group subsidiary EPS bolstered its number one position in this
market in France.
The fact that most large retail bank networks like Société Générale,
LCL, American Express, Banque Accord, HSBC and Mondial Assistance
all recognise and market the company’s solutions is a testament
to their suitability.
OTHER SERVICES
• Communication and media
Crédit Mutuel Centre Est Europe owns
98.8% of the newspaper and commercial
printer SFEJIC, the holding company for the
Alsace group.
Banque Fédérative du Crédit Mutuel (BFCM)
holds 100% of the capital of Républicain
Lorrain, which it bought in 2007, as well as
– directly and indirectly since 2011 – almost
92% of Est Républicain. It also fully owns
EBRA, which has controlling stakes in
Le Bien Public, Le Journal de Saone-et-Loire,
Le Progrès and Le Dauphiné Libéré.
Annual Report 2012
91
FINANCIAL REPORT
SOLID FUNDAM E NTALS
WITH A STRENGTHENED FINANCIAL BASE
REFLECTING RIGOUR AND INTEGRITY
92 CREDIT MUTUEL GROUP
Annual Report 2012
93
FINANCIAL REPORT
CONTENTS
MANAGEMENT REPORT OF THE BOARD OF DIRECTORS OF CONFEDERATION
NATIONALE DU CREDIT MUTUEL
96
Economic and financial background
Activity and results
Analysis by sector of activity
Results by activity
Shareholders' equity and risk exposure
Social and environmental indicators
FINANCIAL STATEMENTS
Statement of financial position
Income statement
Statement of changes in shareholders' equity
Statement of cash flows
94
CRÉDIT MUTUEL
96
99
101
102
104
117
131
131
132
134
136
NOTES TO THE FINANCIAL STATEMENTS
140
INDEPENDENT AUDITORS' REPORT
ON THE CONSOLIDATED FINANCIAL STATEMENTS
200
Annual Report 2012
95
FINANCIAL REPORT
MANAGEMENT REPORT
MANAGEMENT REPORT OF THE BOARD
OF DIRECTORS OF CONFEDERATION
NATIONALE DU CRÉDIT MUTUEL
ON THE 2012 CONSOLIDATED FINANCIAL
STATEMENTS
work having risen to nearly 19 million
(more than 26 million for EU 27). At
end-2012, deleveraging concentrated
initially at the level of households
before spreading to the public sector
remains a key priority for restoring
public finances, but the pace is no
longer the same.
FRANCE NEARLY
AT A STANDSTILL
ECONOMIC
AND FINANCIAL
BACKGROUND
NO LONGER ANY ACCELERATION
IN WORLD GROWTH
2012 revealed the impotence of
government, notably in the western
hemisphere, to galvanise global
expansion. While the Chinese
economy turned around and the US
economy posted modest, but steady
growth, Japan and Europe slipped
into recession. Global GDP growth
weakened from 3.7% on average in
2011 to 2.9% on average in 2012,
below its long-term level (3.3% a year
on average from 1973 to 2007). The
divergence between the different
economies in fact widened, leading to
a new growth hierarchy. The United
States
maintained
extremely
expansionary monetary and fiscal
96 CRÉDIT MUTUEL
policies, as a result of which growth
reached 2.2% in 2012. Japan, one year
on from the Tohoku earthquake, is
struggling to re-launch its economy,
with growth coming in below 2%. In
the euro zone, the effect of austerity
programmes gradually engulfed the
whole of Europe. In this environment,
emerging countries were hit full
force by the weaker demand for
their exports. However, monetary
authorities had enough leeway to
bolster growth. China recorded
growth of 7.8%, the lowest level since
1999, with measures taken to support
the economic seemingly appearing to
produce results in the second half of
2012. In Latin America, economic
activity slowed sharply. However, it is
Eastern European that remains most
exposed to the euro zone’s torments.
Attempts to harness domestic growth
in these countries to offset the weaker
stimulus provided by advanced
economies have led to a resurgence of
external imbalances, notably in the
cases of Brazil and India.
EUROPE REMAINS
AT THE EPICENTRE OF THE CRISIS
2012 was marked by the transmission
of the financial crisis triggered by
the sovereign debt crisis to the real
economy. The failure of the austerity
programmes saw countries enter a
recessionary spiral. Economic activity
in the euro zone contracted by 0.4% in
2012, even affecting Germany, with
growth in the euro zone’s largest
economy slowing to 0.9%. For
Spain and Italy, 2012 was also a very
difficult year. Progress strengthening
European governance has still not
totally restored confidence, but the risk
of a break-up of the European
Monetary Union was extinguished with
the renegotiation of Greece’s second
bailout. While inflation subsided to
reach 2.2% on an annualised basis
despite still high commodity prices and
a series of tax increases in several
Member States, the unemployment
rate reached 11.8% at end-December
2012, with the number of people out of
The French economy dipped back into
a slight recession. Reasoning in real
terms, GDP did not increase in 2012
after posting 1.7% growth in 2011.
Internal as well as external engines of
growth seized up. The reasons for the
weaker domestic demand were the
decline in employment, the steady
increase in inflation, the tightening of
credit and an increased tax load that
eroded household purchasing power.
While household consumption did not
cave in, it was sluggish on the whole
(0.1%
decrease).
Furthermore,
investment decisions were affected
by the weak earnings posted
by non-financial companies, the
lack of competitiveness and the
absence of productivity gains. The
unemployment rate soared to reach
11.7% in December 2012, the number
of people out of work having officially
passed the three million mark in
August 2012, for the first time since
June 1999. France was stripped of its
triple-A status. The weak growth and
the state of the public finances are a
source of concern. France is
increasingly less competitive and short
on innovation. For all these reasons, the
government formed the view at the end
of 2012 that it was necessary to extend
direct aid to the corporate sector to
attenuate the effects of the crisis.
AGREEMENT TO STRENGTHEN
BUDGETARY COORDINATION
Because of the flaws of the European
monetary system, it was urgent to devise
a solidarity mechanism in order to
rescue the single currency. In March
2012, under pressure from Germany,
Member States signed the Fiscal
Compact, requiring them to adopt at
national level the so-called “golden rule”
that is a requirement that, over time, the
structural deficit should not exceed 0.5%
of GDP. With the introduction of the “sixpack”, European governance extends
beyond fiscal surveillance to include the
procedure
for
dealing
with
macroeconomic imbalances. These
measures were widely praised when
they were announced, but because of
the sluggish economic conditions,
debates have now been ignited over
their merits. The crisis that has engulfed
public finances in Europe has led to a
tightening of regulatory mechanisms.
REFINANCING PROVIDED
BY ECB HAS REASSURED
THE MARKETS
The accommodating policy pursued
by central banks and prospects of
institutional changes at the European
Central Bank (ECB) have led to an
easing of conditions in the markets.
The massive injection of liquidity into
the banking system has kept interest
rates at artificially low levels. As
regards government bond yields, the
flight to safety saw investors continue
to favour US debt (1.7% for the 10-year
rate) and German debt (1.4%), but also
that of other countries considered not
to be risky and offering more generous
yields such as French debt (for which
the yield held below 2% at the end of
the year). Japanese and Swiss yields
continued to fall back, down to nearly
0.8% and 0.5%, respectively. The
announcement by the ECB of
programmes (LTRO and OMT) for the
purchase of government bonds with
no limits as to the amounts and
timeframe led to a considerable
improvement in financing conditions
for peripheral Member States. At the
end of 2012, rates had pulled back
below 5% in Ireland, while they fell to
7% in Portugal and were less than 12%
in Greece.
START MADE TOWARD
ECONOMIC GOVERNANCE
AT EUROPEAN LEVEL
The European Central Bank (ECB) finally
followed in the footsteps of the US
Federal Reserve and the Bank of England
in adopting a quantitative easing
strategy in order to keep interest rates at
low levels. While the Federal Reserve
broke new ground in 2012 in terms of
transparency and forward guidance, the
ECB lowered its repo rate below 1% for
the first time since its creation, down 25
basis points to 0.75%. It also persuaded
the market that it would do everything
that was necessary and within its remit
to preserve the euro and address the
sovereign debt crisis. Finally, at the end of
2012, the Eurogroup reached an
agreement on the establishment of a
single supervisory mechanism (SSM) to
sever the links between troubled banks
and public finances. The ECB, which is
being vested with ever greater powers,
will have responsibility for bank
supervision in the euro zone when this
historic agreement comes into force in
March 2014.
Annual Report 2012
97
FINANCIAL REPORT
MANAGEMENT REPORT
EURO PROVING RESILIENT
Despite the economic environment
being favourable to a depreciation of the
euro, the EUR/USD rate neared 1.33 at
the end of 2012, up from 1.29 at the end
of
2011, and
the
currency’s
overvaluation put a strain on the euro
zone’s competitiveness. As for the
Chinese authorities, they succeeded in
stabilising the yuan. The most
significant fluctuation was in the
USD/JPY rate, as the Japanese yen’s
sharp decline caused the pair to soar
above 86.
WORLD’S LEADING EQUITY
MARKETS POSTED VINTAGE
PERFORMANCES IN 2012
2012, A YEAR OF REFORMS
TO SECURE THE BANKING
SYSTEM
ACTIVITY
AND RESULTS
World equity markets rallied more
than 14% in 2012. While markets
remain closely correlated to each
other, European markets stand out for
their spectacular rebound in the
second half of the year, boosted by the
European Central Bank’s change of
course during the summer, this with
the euro zone in recession. The
EuroStoxx 50 appreciated by nearly
14% in 2012, a performance nearly
matching that of the S&P 500. In
Japan, the Topix put on 18%, spurred
by the yen’s decline since midNovember.
Emerging
markets
rebounded by 15.1% overall, but there
were more surprises given the highly
contrasting individual performances.
Following the financial crisis from 2007
to 2009 and then the euro-zone
sovereign debt crisis since 2010,
compounded by a global recession in
2009, G20 countries laid the foundations
for regulations and instruments aimed at
tightening controls over financial
activities. After four decades of financial
deregulation, laws on the ring-fencing of
banking activities to protect customer
deposits from speculation on the
financial markets are in the works in the
United States, the United Kingdom and
France. Furthermore, global banking
regulations (Basel III) are expected that
will define an international framework
for financial activities (although at end2012 it was uncertain when these
regulations would be implemented in
Europe and the United States). The latest
reform is the decision to establish a
single banking supervision mechanism
(SSM) for the euro zone at the level of
the European Central Bank, a first step
toward a banking union, which
constitutes a major breakthrough at
regulatory level.
The Crédit Mutuel group is not listed and is consequently under no obligation to present financial statements in accordance with
International Financial Reporting Standards (IFRS). However, for the sake of greater transparency and to promote comparability
with other leading financial institutions, the Board of Directors of Confédération Nationale du Crédit Mutuel, which is the group's
central governing body within the meaning of Article L.511-31 of the French Monetary and Financial Code, has opted to prepare
consolidated financial statements in accordance with International Financial Reporting Standards as approved by the European
Union.
The Board of Directors approved the consolidated financial statements for the year ended 31 December 2012 when it met on 6 March
2013 and is presenting them, together with this report, to the General Meeting for its approval.
The main changes in the consolidation
scope arose mainly from additions, with:
– the first time consolidation of Banco
Popular Español, which is accounted
for using the equity method, the
2011 comparatives having been
restated accordingly;
– the acquisition of Citibank Belgique
and OBK Bank;
– the acquisition of Spanish insurance
group AMCI; and
– the consolidation of CMCIC
Immobilier (formed by merging the
entities of the Ataraxia division and
the subsidiaries of CM11).
DEPOSIT TAKING, ONE OF
THE GROUP’S PRIORITIES,
WEIGHED ON THE INTEREST
MARGIN
Despite lower refinancing costs, the
interest margin decreased for the
second consecutive year, down 18.3%
to €6,346 million, due to a decline in
the net margin of transactions with
customers and credit institutions. The
various components of the interest
margin reflect notably variances for
the following lines:
• Customer deposits: €277,187
million (€274,308 million excluding
SFEF), up 7.6% (9.2% excluding
SFEF)
There were significant trends for
several categories:
– Regulated saving accounts: Crédit
Mutuel’s own “Bleu” saving
deposits and A saving deposits
recorded a 17.0% increase to
€34.9 billion, while sustainable
development saving deposits
recorded a 45.4% increase to
€13.1 billion. It should be recalled,
however, that funds collected are
centralised at the level of CDC
(€35.5 billion, equivalent to
64.5%in 2012, including popular
savings book accounts); and
– Non-regulated term deposits, for
which there was an 8.4% increase to
€64.6 billion.
• Customer loans and advances :
€342,946 million, up 1.5%, with
weaker loan origination of €62.6
billion, down 12% compared with
2011
Note in particular that:
– Home loans increased to €180,389
million, up by 0.6% to (but after
restatement for the BPE loans,
increasing this amount by €2.4 billion,
there was 1.9% growth). This
slowdown results from a significant
decrease in loan production, down
23.0% to €23.9 billion, demand having
been affected by the economic
environment, still high property prices
and reduced state support. Note,
however, that the decrease in
production recorded by the group was
not as sharp as that recorded by the
market as whole (33.1% according to
Observatoire Crédit Logement/CSA).
– Consumer credits and revolving
credits increased to €35,711 million,
up by 5.2% year-on-year including
Citibank Belgique (and by 1% at
constant consolidation scope).
Production increased to €14.6
billion, up by 7.0% (and by 1.6% at
constant consolidation scope), when
the overall consumer credit market
in France for institutions belonging
to the French Bankers’ Association
contracted by 5.1%.
- Equipment loans increased, up 5.6%
to €62,773 million, lease financing
too, up 4.4% to €10,600 million,
whereas short-term business credits
declined, down 12.4% to €25,340
million. Overall, the production of
equipment and short-term business
credits declined, down 8.9% to €24.1
billion,
reflecting
companies’
perceived lack of visibility on the
economic environment.
Crédit Mutuel group has been
a member of COSEF (Comité
d’Orientation et de Suivi de l’Emploi
du Fonds de Cohésion Sociale) ever
since its creation, by virtue of which it
distributes microcredits guaranteed by
the Social Cohesion Fund. They include
notably personal and business
microcredits. At the level of the group,
loan production in 2012 was as follows:
– Personal microcredits: 1,175 loans
totalling €2.481 million; loan
production to date: €4.076 million;
– Business microcredits (Réseau
Initiative, Adie, France Active and
NACRE ): 6,300 loans totalling
€226.490 million.
In total, 7,475 loans totalling €228.973
million were originated in 2012.
(1) Excluding securities not listed in an active market
(2) Assets of Banque Privée Européenne (BPE) not assumed by Federal Finance have been reclassified as “Non-current assets held for sale” pending completion of its sale to La
Banque Postale at end-March 2013
98 CRÉDIT MUTUEL
Annual Report 2012
99
FINANCIAL REPORT
MANAGEMENT REPORT
SLIGHT DECLINE
IN COMMISSIONS…
Net commission income decreased
slightly. At the level of the banking
network, this was due notably to lower
commissions on financial transactions,
down 15%, and on credits, down 19%.
On the other hand, commissions for
account management and insurance
services increased.
INSURANCE ACTIVITY
BENEFITED FROM THE
FINANCIAL MARKETS’
REBOUND, WHICH ALSO
BOOSTED THE VALUE OF THE
SECURITIES PORTFOLIO…
Gains on the portfolios of instruments
at fair value through profit and loss
and instruments available for sale
amounted to €1,282 million in 2012
(compared with losses of €222 million
in 2011).
Similarly, net income from insurance
activities increased by €520 million to
€2,659 million. On the other hand,
premium income was lower, which
was due exclusively to life insurance,
as non-life insurance premiums
increased.
PAVING THE WAY FOR AN
INCREASE IN NET BANKING
INCOME, UP 4.4%
TO €14,573 MILLION
GENERAL OPERATING
EXPENSES BEAR
THE IMPRINT NOTABLY
OF CHANGES IN TAX
AND SOCIAL REGULATIONS
General operating expenses increased
by 6.9% to €9,663 million, driven
higher by exceptional items totalling
€361m, linked to changes in tax and
social regulations for €172 million and
to changes in the consolidation scope
for €171 million. Restated for these
factors, the increase in general
100 CRÉDIT MUTUEL
operating expenses was limited to
2.9%. Changes in tax and social
regulations involved notably a
doubling of the tax for systemic risks
(€50 million), a broadening of payroll
taxes to compulsory and voluntary
employee profit-sharing schemes
(€34 million) and an increase in the
employer special social contribution
(€32 million). Crédit Mutuel group
employed 79,060 people in 2012 on a
full-time equivalent basis, stable
compared with 2011. The adjusted
cost-to-income ratio reached 63.8%
in 2012 compared with 64.8% in 2011.
COST OF RISK DECREASED
AFTER RESTATING
EXCEPTIONAL ITEMS
The cost of risk decreased by 24.7% to
€1,254 million, reflecting the evolution
of the Greek sovereign debt crisis that
weighed heavily in 2011. Adjusted for
this factor (net loss of €34 million in 2012
and provisions of €488 million in 2011),
the cost of risk in fact increased by 6.0%.
On the other hand, the evolution of its
components differed, as specific
provisions were stable (after adjusting
for Greece and changes in consolidation
scope), whereas amounts set aside in
respect of provisions for non-incurred
risks increased sharply to €49 million
(compared with which €20 million of
provisions were reversed in 2011).
As regards risk quality:
– the proportion of impaired loans
increased to 4.1% of total loans at 31
December 2012 compared with 3.9%
at 31 December 2011;
– excluding general provisions, the
coverage rate for these loans
reached 59.6% compared with 61.1%
at 31 December 2011. Overall, it
reached it 64.4% compared with
65.7% at 31 December 2011. .
AS A RESULT OF WHICH
THERE WAS ANOTHER
INCREASE IN TOTAL
SHAREHOLDERS’ EQUITY,
UP 12% TO €37,380 MILLION
This increase was due mainly to:
– the €619 million increase in capital;
– the transfer to reserves of much of
the 2011 profit;
– the €2,150 million profit generated
in 2012; and
– the €442 million of unrealised capital
gains at the level of the group
(compared with losses of €1,088
million in 2011), helped by the good
conditions in the financial markets.
It will be recalled that the impact on
shareholders’ equity for prudential
purposes differs because of the
application of the filters imposed by
the French Banking Commission and
the differences in the consolidation
methods applied to some entities,
notably insurance undertakings.
ANALYSIS BY SECTOR OF ACTIVITY
The five operating segments for reporting purposes correspond to the organisation of Crédit Mutuel group.
Retail Banking comprises the
networks of Crédit Mutuel's regional
federations and CIC's regional banks.
This segment also includes some of
the specialised activities whose
products and services are marketed
by the networks such as finance
leasing, factoring, real
estate
businesses (investment, facilities
management, distribution
and
property development) and collective
management of products distributed
by the network.
Insurance is considered as a separate
segment given its importance in the
group's activities. The group has
historically been the leading bank in
this area, having started its
bankinsurance activity in 1970. The
segment covers both life and non-life
insurance.
Corporate and Investment Banking
covers financing for large corporates
and institutional customers, addedvalue financing activities, private
equity, international activities and
capital markets activities, whether on
the group’s own behalf or on behalf of
customers, including stock market
intermediation.
Asset Management and Private
Banking comprises the subsidiaries
that are mainly engaged in private
banking, both in France and abroad,
together with the asset management
and employee savings activities.
Other activities cover all the
activities that cannot be attributed to
any of the above segments, together
with subsidiaries involved purely in
logistical support, whose expenses are
generally re-billed to the other entities.
They include intermediate holding
companies, companies owning the
property used in the group’s
operations, and media and IT
subsidiaries.
Standard & Poor’s affirmed the
group’s A+ long-term rating and A-1
short-term rating, thus confirming the
group’s financial solidity. The decision
to place the ratings on Negative rating
results from the economic situation in
France and from the downgrading of
France’s sovereign credit rating.
Banque Fédérative du Crédit Mutuel
(the holding company of the CM11CIC group) is rated Aa3 (Negative
outlook) by Moody’s and A+ (Stable
outlook) by Fitch.
LEADING TO A SLIGHT
INCREASE IN NET PROFIT
ATTRIBUTABLE TO THE
OWNERS, UP 0.2%
TO €2,150 MILLION…
Annual Report 2012
101
FINANCIAL REPORT
MANAGEMENT REPORT
RESULTS BY ACTIVITY
CORPORATE AND INVESTMENT BANKING
The weight of the data by sector of activity is calculated before elimination of intra-group transactions. 2011 comparatives were
restated to reflect the early application of IAS 19 revised (see accounting policies in the notes to the consolidated financial
statements). 2011 comparatives are provided on a reported basis and on a pro forma basis when the impact is material. Otherwise
only pro forma 2011 comparatives are provided.
RETAIL BANKING
(€M)
Net banking income
Gross operating profit
Profit before tax
Net profit attributable to the owners
Net banking income contributed by
retail banking declined by €485 million,
down 4.2% to €11,201 million. This was
due mainly to an increase in the cost of
deposits, notably for saving deposits,
affected by adverse volume and interest
rate effects, and for term deposits.
The customer base now stands at 30.1
million, which represents an increase of
2.2% compared with 2011. The Crédit
Mutuel and CIC networks expanded
their customer bases by 227,000 in 2012
on a net basis, which represents a 1.4%
increase.
General operating expenses increased
by €422 million. There was a more
2012
2011
CHANGE
2012/2011
2011
REPORTED
11,201
3,370
2,287
1,396
11,686
4,277
3,266
2,122
(4.2%)
(21.2%)
(30.0%)
(34.2%)
11,662
4,244
3,208
2,076
moderate
2.4%
increase
after
neutralising the impact of exceptional
items, as changes in the consolidation
scope and in tax and social regulations
pushed up general operating expenses
by €133 million. Investments in the
network continued, the number of
branches increasing to 5,961, of which
5,362 in France and 599 abroad.
Gross operating profit came to €3,370
million, down by 21.2% on a reported
basis (and by 18.8% on an adjusted
basis).
The cost of risk declined by 2.5%, down
€27 million to €1,039 million. After
adjusting for Greece and changes in the
consolidation scope, the cost of risk
increased by 1.0%. Incurred risk
decreased by €59 million, whereas nonincurred risk increased by €70 million.
In 2012, losses on other assets and losses
contributed
by
equity-accounted
investments came to €44 million due to
various exceptional items.
All in all, in a particularly difficult
environment and after income tax
expense of €827 million, down 21.7%
from 2011, net profit decreased by €750
million to €1,460 million and net profit
attributable to the owners by €726
million to €1,396m.
INSURANCE
(€M)
2012
2011
CHANGE
2012/2011
Net banking income
Gross operating profit
Profit before tax
Net profit attributable to the owners
1,873
1,366
1,318
782
1,347
853
827
556
39.0%
60.1%
59.4%
40.6%
Net banking income contributed by
insurance increased by €526 million, up
39% to €1,873 million. This activity
benefited from the rebound of the
financial markets, which lead to a
€1.7 billion increase in net investment
income, due mainly to adjustments to the
value of unit-linked contracts. However,
premium income generated by the
group’s insurance companies declined
(down 1.5% year-on-year to €11.8 billion)
because of a lesser contribution by life
insurance (4.6% decrease that, however,
was slighter than the 8% decrease
102 CRÉDIT MUTUEL
recorded by the market as a whole),
whereas non-life insurance made a
greater contribution (4.6% increase).
The insurance subsidiaries managed 31.2
million policies at 31 December 2012
(2.6% more than the year before) for
almost 12.4 million policyholders (4.7%
more than the year before).
General operating expenses increased by
2.6% (1.9% after adjusting for the impact
of changes in tax and social regulations).
Staff costs increased, whereas other
operating expenses decreased by 1.0%.
Given the sharp 39% increase in net
banking income and controlled increase
in general operating expenses, there was a
more than 60% increase in gross
operating profit.
The cost of risk was due entirely to the
Greek crisis in 2011 and was negligible in
2012.
Corporation tax nearly doubled as a result
of the increase in profit but also because
of the €43 million of additional tax on
funds transferred to the insurance
companies’ capitalisation reserves.
All in all, net attributable profit increased
sharply by 40.6% to €782 million.
(€M)
2012
2011
Net banking income
Gross operating profit
Profit before tax
Net profit attributable to the owners
1,139
806
715
484
955
652
505
330
Net banking income contributed by
corporate and investment banking increased
by 19.3% to €1,139 million. This increase was
due largely to the capital markets activity,
whereas the financing activity made a
slighter contribution. The private equity
activity made a slightly greater contribution
due to portfolio valuation adjustments and to
dividends collected. General operating
expenses increased, notably on account of
higher taxes. These expenses being limited
proportionally, gross operating profit
increased by 23.6%. The cost of risk declined
by €56 million (or 38.1%) to €91 million, but
CHANGE
2012/2011
19.3%
23.6%
41.6%
46.7%
adjusted for the impairment losses recorded
against Greek sovereign debt in 2011, this
cost more than doubled, rising by €50
million. This increase was due to both
incurred and non-incurred risk. Net
attributable profit increased by 46.7%
to €484 million.
ASSET MANAGEMENT AND PRIVATE BANKING
(€M)
Net banking income
Gross operating profit
Profit before tax
Net profit attributable to the owners
Net banking income rose by 7.3% to
€664 million, with both private banking
and asset management contributing to
this increase. However, adjusted for
non-recurring items, net banking
income inched up by only 0.2%. The
first-time consolidation of Schelcher
Prince Gestion (SPG) at the end of 2011
accounted for much of the increase on
a reported basis, in addition to which
the Greek crisis weighed on net
2012
2011
664
198
172
121
619
181
166
124
banking income in 2011.Not taking
into account life insurance, off balance
sheet assets managed by the group and
in its custody increased by 12.3% to
€264.3 billion, benefiting from the
financial markets’ upturn in 2012 (15%
rise for the CAC 40 index) and a
favourable level of activity for UCITS at
the group’s various asset management
entities (CMCIC-AM, La Française AM
and Federal Finance, which acquired
CHANGE
2012/2011
7.3%
9.4%
3.6%
(2.4%)
the management company Schelcher
Prince Gestion).
General operating expenses increased
by 6.4% (4.0% excluding exceptional
items), with much of this increase
generated by private banking.The
Greek sovereign debt crisis explains
much of the change in the cost of risk
between 2011 and 2012
Net attributable profit inched lower by
2.4% to €121 million.
OTHER ACTIVITIES
(€M)
2012
2011
Net banking income
Gross operating profit
Loss before tax
Net loss attributable to the owners
384
(830)
(964)
(633)
28
(1,041)
(1,413)
(987)
Net banking income contributed by Other
activities amounted to €384 million, up
€356 million from 2011. Several factors
explain this increase, notably the disposal of
participating interests. General operating
expenses increased to €1,214 million (up
7.3% after adjusting for non-recurring
items). The cost of risk decreased to €90
million, down from €342 million in the
previous year, this decrease being due to
the non-recurrence of the impairment
losses recognised against Greek debt.
The net attributable loss amounted to €633
million, which marked an improvement
compared with 2011. All in all, retail banking
accounted for more than 73% of net
CHANGE
2012/2011
2011
REPORTED
n/s
20.3%
31.8%
35.9%
41
(1.024)
(1.396)
(973)
banking income (compared with 79.8% in
2011), while the relative contributions made
by insurance and corporate and investment
banking increased to 12.3% and 7.5%,
respectively. Insurance contributed more
than 36% of net profit because in relative
terms it accounted for a low proportion of
general operating expenses.
Annual Report 2012
103
FINANCIAL REPORT
MANAGEMENT REPORT
SHAREHOLDERS' EQUITY
AND RISK EXPOSURE
The data provided in the tables on the following pages are expressed in millions of euros.
The figures correspond to audited figures unless indicated otherwise by an asterisk.
SHAREHOLDERS’ EQUITY
Under CRBF Regulation 2000-03, the
networks of banking institutions with a
central governing body must comply
with management ratios both on an
individual basis (for each of the groups
making up Crédit Mutuel) and on a
consolidated basis at national level
(market risk and credit risk, large risks,
and equity holdings).
The consolidating entity and the scope
of prudential supervision of the Crédit
Mutuel group are identical to those
used for the group's consolidated
financial statements. Only the
consolidation method changes, notably
as regards the insurance companies,
which are consolidated for accounting
purposes using the full consolidation
method and for prudential purposes
using the equity method.
The solvency ratio defines the capital
requirement needed to cover credit,
market and operational risks. Total
shareholders' equity corresponds to the
sum of core shareholders' equity (Tier 1
including undated super-subordinated
securities), additional shareholders'
equity
(including
redeemable
subordinated securities and undated
subordinated securities) and regulatory
deductions (some investments in nonconsolidated or equity-accounted
financial institutions and investments
in insurance companies).
Shareholders' equity is restated to take
SOLVENCY RATIO
Tier 1 capital = Total prudential shareholders' equity
Weighted risk
Core Tier 1 ratio
into account the effect of prudential
filters, whose purpose is to reduce the
volatility of shareholders' equity
induced by the international standards,
notably by the introduction of fair
value.
The group also complies with the
reporting requirements arising from
the EU Directive applicable to financial
conglomerates. This requires, among
other things, additional monitoring of
the
coverage
by
consolidated
shareholders' equity of the cumulative
capital adequacy requirements of the
banking activities and the solvency
margin of the insurance companies.
The Crédit Mutuel group complies with
all the applicable regulatory ratios.
31.12.2012
31.12.2011
28,042
193,284
14.5%
27,680
210,320
13.2%
National and regional procedures are
based on an internal rating system,
defined in compliance with Basel II
requirements. This internal rating
system is used by all group entities. It
allows for the rating of all counterparties
eligible for internal ratings-based
approaches. The system is based on
different statistical models for customer
segments for retail exposures and on
manual rating grids developed by
experts for bank exposures, large
corporate exposures and specialised
market activities. All counterparties
eligible for internal ratings-based
approaches are positioned on a single
rating scale (nine positions for sound
exposures in addition to one denoting
exposures in default) reflecting the
progressive nature of the risk.
The systems for reclassifying and
provisioning loans are integrated into
the information systems and operate
on a monthly basis, reclassifying
performing loans as doubtful loans
where applicable. The software also
integrates the notion of contagion to a
third party. Provisions are calculated
according to the outstanding amounts
and the guarantees received, and
adjusted by the risk managers depending
on the estimated ultimate loss.
At national level, applications for
steering and retrieving weighted risk
calculations map credit risks, thus
enabling the analysis of commitments
according to the main categories
defined in the internal rating system.
The mappings are completed by more
detailed management reports, which
are produced at national level and then
analysed by regional entity, providing
information on the quality of the
group’s commitments and compliance
with national limits placed on credit
risks. The mappings and reports are
sent to the senior management of the
regional groups (Chief Executive
Officers, Risk Management Directors,
Commitments Directors) and to the
executive and decision-making bodies
of Confédération Nationale du Crédit
Mutuel.
CREDIT RISK EXPOSURE ON LOANS AND RECEIVABLES
EXPOSURE
Loans and receivables
Credit institutions
Customers
Gross exposure
Provisions for impairment
Credit institutions
Customers
Net exposure
31.12.2012
31.12.2011
58,498
352,465
410,963
(9,507)
(280)
(9,227)
45,986
347,392
393,378
(9,367)
(310)
(9,057)
401,456
384,011
The solvency ratio at 31 December 2011 has been restated to take into account the removal of the Basel I floor on 1 January 2012.
There was a 4.5% increase in the net exposure to credit risk on loans and receivables. This reflects mainly a 27% increase in
outstandings with credit institutions, due partly to a €5.5 billion rise in the transfer of funds collected to the CDC.
RISK MANAGEMENT POLICY
CREDIT RISK
As the group's central governing body,
the measurement and monitoring of
consolidated risk exposures form part
of Confédération Nationale du Crédit
Mutuel's supervisory duties. At
regional level, each Crédit Mutuel
group is responsible for managing its
own risk exposures.
Crédit Mutuel’s credit risk management
policy seeks to achieve several
objectives, namely to:
– measure capital requirements;
– help steer the group by managing
commitments in compliance with
limits set in terms of the amount and
nature of these risks;
– reduce the cost of risk over time; and
– respond efficiently to Basel II and
internal control regulations and
ensure that regulatory compliance
investments generate a return.
104 CRÉDIT MUTUEL
As part of the overall group risk policy
adopted by the Confédération's Board
of Directors, each regional group is
responsible for defining a general
policy for managing risks at its level.
This policy is then applied by each
regional group in the rules for
approving loans and advances, setting
the main orientations of its lending
activity (notably in terms of customer
segmentation), and setting and
monitoring limits. Financing limits are
set so that they are adapted to the risk
management policy and to the
financial fundamentals of the entity
concerned and are consistent with the
system in place at national level.
CREDIT RISK EXPOSURE ON COMMITMENTS GIVEN
EXPOSURE
Financing commitments given
Credit institutions
Customers
Guarantee commitments given
Credit institutions
Customers
Provisions for risk on commitments given
31.12.2012
31.12.2011
1,882
58,502
1,884
63,760
1,691
16,519
167
2,589
16,705
165
Annual Report 2012
105
FINANCIAL REPORT
MANAGEMENT REPORT
EXPOSURE TO CREDIT RISK ON DEBT SECURITIES
EXPOSURE
CUSTOMER CREDIT RISK
31.12.2012
31.12.2011
15,670
115,667
5,317
12,467
149,121
(159)
19,000
110,132
4,146
8,969
142,247
(991)
148,962
141,256
(1)
Debt securities
Government securities
Bonds
Derivatives
Repurchase agreements and securities lending
Gross exposure
Provisions for impairment
Net exposure
(1)
BREAKDOWN OF LOANS AND ADVANCES
BY CUSTOMER SEGMENT
A - Central governments and banks
B - Credit institutions
C - Corporates
D - Retail
31.12.2012
as a %
31.12.2011
as a %
16.8%
8.0%
19.9%
55.3%
14.1%
9.3%
19.6%
57.0%
Crédit Mutuel group is positioned mainly as a retail bank. Its exposure to retail customers was stable.
Excluding securities classified under loans and receivables
There was a 5.5% increase in net credit risk exposure on debt securities. Exposure increased on bonds at the expense of
government securities. Increased use of repurchase agreements led to a 39% increase in exposure.
France
Germany
Rest of Europe
Rest of world
RATING STRUCTURE OF INTERBANK OUTSTANDINGS AND GEOGRAPHIC BREAKDOWN
OF INTERBANK LOANS
RATINGS OF INTERBANK
OUTSTANDINGS
AAA and AA+
AA and AAA+ and A
A- and BBB+
BBB and below
31.12.2012
as a %
31.12.2011
as a %
0.1%
35.3%
43.7%
9.3%
11.6%
0.5%
28.8%
53.3%
5.4%
12.0%
The structure of the group’s interbank exposures, based on the internal rating system, remained of good quality as at 31
December 2012, with 79.1% of these exposures rated between B+ and A+ (equivalent to external ratings of between A and AAA).
The small changes observed in 2012 are linked to rating revisions for certain group counterparties.
GEOGRAPHIC BREAKDOWN OF INTERBANK
LOANS
France
Rest of Europe
Rest of world
GEOGRAPHIC BREAKDOWN
OF CUSTOMER RISK
31.12.2012
as a %
31.12.2011
as a %
46.3%
38.4%
15.3%
40.6%
46.8%
12.6%
CONCENTRATION OF GROSS CUSTOMER RISK
Commitments exceeding €300 million
Number
Loans (€m)
Off balance sheet commitments (€m)
Securities (€m)
Commitments of between €200 million and €300 million
Number
Loans (€m)
Off balance sheet commitments (€m)
Securities (€m)
31.12.2011
as a %
85.8%
3.9%
6.1%
4.2%
86.1%
4.0%
6.2%
3.8%
31.12.2012
31.12.2011
65
11,932
21,156
10,925
74
14,416
23,462
15,335
38
3,158
3,934
1,569
28
2,796
2,932
1,112
Taking all commitments into account (loans, off balance sheet and securities), the average unit amount of the 65 largest risks
exceeding €300 million was €677 million (2011: €719 million) while the average unit amount of the 38 largest risks between
€200 million and €300 million was €228 million.
QUALITY OF RISK
The geographical breakdown indicates that interbank exposure remains mainly limited to banks incorporated in France
(46.3% at 31 December 2012, up 5.7 percentage points compared with the previous year) and in the rest of Europe (38.4%,
down 8.5 percentage points), while exposure to banks in the rest of the world increased to 15.3%, up 2.7 percentage points.
31.12.2012
as a %
31.12.2012
31.12.2011*
31.12.2011**
Loans and advances written down individually
Individual provisions
General provisions
Overall coverage ratio
14,333
(8,539)
(688)
64.4%
13,711
(8,428)
(629)
66.1%
13,711
(8,373)
(631)
65.7%
Coverage ratio
(individual provisions only)
59.6%
61.5%
61.1%
Impaired loans inched higher to 4.1% of total loans (2011: 4.0%).
* Restated. ** Reported.
106 CRÉDIT MUTUEL
Annual Report 2012
107
FINANCIAL REPORT
MANAGEMENT REPORT
PAST DUES
BREAKDOWN OF GROSS EXPOSURES
31.12.2012
(€m)
Equity instruments
Debt instruments
Central governments
Credit institutions
Financial institutions
other than credit institutions
Large corporates
Retail customers
Loans and advances
Central governments
Credit institutions
Financial institutions
other than credit institutions
Large corporates
Retail customers
Other financial assets
Total
PAST DUES
>3MONTHS
Equity instruments
Debt instruments
Central governments
Credit institutions
Financial institutions
other than credit institutions
Large corporates
Retail customers
Loans and advances
Central governments
Credit institutions
Financial institutions
other than credit institutions
Large corporates
Retail customers
Other financial assets
Total
>3MONTHS > 6 MONTHS
> 1 YEAR
≤ 6 MONTHS ≤ 1 YEAR
TOTAL
TOTAL
(1) + (2)
BREAKDOWN OF GROSS EXPOSURES
BY ECONOMIC SECTOR
GUARANTEES
AND CREDIT
ENHANCEMENTS
RECEIVED
IN RESPECT
OF IMPAIRED
ASSETS
TOTAL
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
338
837
3
654
338
837
3
654
0
0
0
0
0
0
0
6,490
1
10
0
0
0
157
0
0
0
0
0
46
0
0
0
0
0
25
0
0
0
0
0
6,718
1
10
1
179
0
5 772
0
8
1
179
0
12,490
1
18
0
0
0
8,745
0
0
87
791
5,601
0
0
12
145
0
0
9
37
0
0
11
14
0
87
823
5,797
0
0
1,331
4,433
87
2,154
10,230
0
0
861
7,884
0
6,490
157
46
25 6,718
6,947
13,665
8,745
31.12.2011
(€m)
CARRYING
AMOUNT OF
IMPAIRED
ASSETS (2)
PAST DUES (1)
>3MONTHS
CARRYING
AMOUNT OF
IMPAIRED
ASSETS (2)
>3MONTHS > 6 MONTHS
> 1 YEAR
≤ 6 MONTHS ≤ 1 YEAR
TOTAL
TOTAL
(1) + (2)
GUARANTEES
AND CREDIT
ENHANCEMENTS
RECEIVED
IN RESPECT
OF IMPAIRED
ASSETS
Private individuals
Public administrations and central banks
Banks and financial institutions
Sole traders
Retail trade
Real estate
Construction and building materials
Holdings and conglomerates
Industrial goods and services
Agriculture
Other financial activities
Food processing and beverages
Industrial transport
Crude oil. gas and commodities
Travel and leisure
Automobile industry
High technology
Household products
Utilities
Associations
Healthcare
Media
Telecommunications
Chemicals
Sundry
31.12.2012
as a %
31.12.2011
as a %
46.7%
17.1%
6.1%
3.5%
3.5%
3.3%
2.4%
2.0%
2.0%
2.0%
2.0%
1.4%
1.3%
1.1%
1.0%
0.7%
0.6%
0.5%
0.5%
0.5%
0.5%
0.4%
0.3%
0.2%
0.3%
47.1%
14.4%
7.3%
3.7%
3.5%
3.3%
2.4%
2.4%
2.1%
1.9%
2.1%
1.4%
1.3%
1.2%
1.1%
0.7%
0.7%
0.6%
0.5%
0.0%
0.5%
0.0%
0.0%
0.0%
1.8%
Source: CM-CIC group – Basel II calculator. At 31 December 2011, associations, media, telecommunications and chemicals were reported on the line “Sundry”.
TOTAL
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,714
1,153
184
794
1,714
1,153
184
794
0
0
0
0
0
0
0
4,951
5
18
0
0
0
95
0
0
0
0
0
16
0
0
0
0
0
8
0
0
0
0
0
5,070
5
18
0
175
0
5,335
0
2
0
175
0
10,405
5
20
0
0
0
5,005
0
0
47
656
4,225
4
0
5
90
0
0
1
15
0
0
4
4
0
47
666
4,334
4
1
1,201
4,131
48
1,867
8,465
0
0
612
4,393
0
4,955
95
16
8 5,074
8,202
13,276
5,005
Scope: prudential scope
Past dues increased at all maturities, up 32% overall. They concern mainly retail customers.
108 CRÉDIT MUTUEL
Annual Report 2012
109
FINANCIAL REPORT
MANAGEMENT REPORT
EXPOSURES LINKED
TO THE FINANCIAL CRISIS
In response to the financial crisis, the
Financial Stability Board (FSB) issued
recommendations
relating
to
transparency, aimed at improving
financial information in respect of
certain risk exposures.
view to improving its financial
communication.
The information below is expressed in
millions of euro
The Crédit Mutuel group elected to
apply these recommendations with a
SECURITISATION
CARRYING VALUE
31.12.2012
CARRYING VALUE
31.12.2011
2,514
423
1,147
799
833
25
351
4,186
505
1,710
920
721
28
351
6,092
8,421
RMBS
CMBS
CDO/CLO
Other ABS
CLO hedged by CDS
Other ABS hedged by CDS
Liquidity lines
TOTAL
Unless indicated otherwise, securities are not hedged by credit default swaps (CDS).
EXPOSURES AT 31 DECEMBER 2012
CARRYING AMOUNT AT
31.12.2012
Trading
Available-for-sale (AFS)
Loans (held-to-maturity/loans and receivables)
TOTAL
France
Spain
United Kingdom
Rest of Europe
United States
Rest of world
TOTAL
US Agencies
AAA
AA
A
BBB
BB
B or less
Not rated
TOTAL
Origination in 2005 and before
Origination in 2006
Origination in 2007
Origination since 2008
TOTAL
110 CRÉDIT MUTUEL
RMBS
CMBS
CLO
OTHER
ABS
TOTAL
921
572
1,021
268
122
33
150
92
905
505
141
153
1,844
927
2,112
2,514
423
1,147
799
4,883
7
167
244
761
1,232
103
22
135
266
-
95
16
716
320
-
519
70
47
138
25
-
643
253
291
1,750
1,843
103
2,514
423
1,147
799
4,883
447
555
293
214
96
101
808
-
263
18
41
78
1
22
-
407
505
100
15
15
24
81
522
53
155
20
2
47
-
447
1,747
869
510
209
119
901
81
2,514
423
1,147
799
4,883
463
547
758
746
120
84
218
1
125
204
444
374
33
48
117
601
741
883
1,537
1,722
2,514
423
1,147
799
4,883
EXPOSURES AT 31 DECEMBER 2011
CARRYING AMOUNT AT
31.12.2011
RMBS
CMBS
CLO
OTHER
ABS
TOTAL
Trading
1,173
Available-for-sale (AFS)
1,123
Loans (held-to-maturity/loans and receivables) 1,890
353
95
57
151
210
1,349
366
242
312
2,043
1,670
3,608
TOTAL
4,186
505
1,710
920
7,321
29
345
413
1,452
1,795
152
33
30
108
321
13
83
35
1
737
853
1
355
212
52
159
121
21
500
592
496
2,456
3,090
187
4,186
505
1,710
920
7,321
521
1,716
211
249
145
133
1,211
-
322
95
55
10
8
15
-
732
749
164
26
12
10
17
432
114
98
121
24
131
-
521
3,202
1,169
566
302
177
1,367
17
4,186
505
1,710
920
7,321
1,037
1,237
1,135
777
45
155
235
70
140
615
568
387
215
123
186
396
1,437
2,130
2,124
1,630
4,186
505
1,710
920
7,321
France
Spain
United Kingdom
Rest of Europe
United States
Rest of world
TOTAL
US Agencies
AAA
AA
A
BBB
BB
B or less
Not rated
TOTAL
Origination in 2005 and before
Origination in 2006
Origination in 2007
Origination since 2008
TOTAL
Annual Report 2012
111
FINANCIAL REPORT
MANAGEMENT REPORT
Regarding the minimal capital
requirements of Pillar I, the major
changes compared with the Cooke
(1)
The so-called standardised approach is
similar to the Basel I Framework
insofar as it is based on the application
of fixed risk weightings to the different
categories of exposures as defined by
the
regulations.
The
main
modifications result from the
possibility to adjust the risk weightings
applicable on the basis of credit
assessments provided by recognised
external institutions and from the
broader range of sureties, guarantees
and credit derivatives that may be
taken into account by banks.
With the agreement of the ACP, Crédit
Mutuel group will continue to measure
claims on sovereigns and regional
governments and local authorities
using the standardised method over
the foreseeable future.
There are two main approaches:
– Foundation internal ratings-based
approach (F-IRB), under which
banks provide their own internal
estimates for the probability of
default. Other risk components (LGD,
CCF and M) are defined in the
regulations.
– Advanced internal ratings-based
approach (A-IRB), under which
banks provide their own internal
estimates for the PD, CCF, LGD and
M risk components. This approach
requires records stretching back over
a long enough period of time for
statistical purposes.
Crédit Mutuel has opted to apply the
most sophisticated approaches of Basel
II, focusing first on retail customers,
these representing its core business.
The
ACP
has
authorised
Confédération Nationale du Crédit
Mutuel to use its internal ratings
models for the calculation of
regulatory capital requirements for
credit risks as follows:
– Advanced internal ratings-based
approach, from 30 June 2008, for
exposures to retail customers;
– Foundation internal ratings-based
approach, from 31 December 2008,
then the advanced internal ratings-
All in all, Crédit Mutuel has structured
its management and credit risk
measurement system by capitalising
on the Basel II Framework, based
upon:
– a single counterparty rating system;
– a harmonised definition of default
that is consistent with the
accounting approach;
– the use of national parameters
incorporating a margin of prudence;
and
– significant investments in its
information systems.
INTEREST RATE RISK
Interest rate risk arises from the bank’s
commercial activities. It results from
differences in interest rates and
benchmark indices for customer loans
and advances on the one hand and
customer deposits on the other hand,
based on a prospective analysis of
expected
changes
in
these
components, taking into account
embedded options (notably early
repayments,
extensions
and
drawdowns against confirmed credit
lines).
The regional groups are responsible
for defining their interest rate risk
management and hedging strategies.
As required by the regulations (CRBF
Regulation 97-02 as amended and
extended to central governing bodies),
CNCM’s
Risk
Management
department is responsible for the
consolidated and homogeneous
measurement of this risk by coordinating methodologies and by
regular measurement of overall risk at
group level.
The Crédit Mutuel group has
established
harmonised
risk
agreements and risk limits, which are
set out in the "Group asset and liability
management guidelines".
Measurement and supervision of
interest rate risk is carried out at
regional level by the Crédit Mutuel
regional groups and at national level
by CNCM.
At regional level
Each of the Crédit Mutuel regional
groups has an asset/liability management (ALM) unit dedicated to
monitoring overall interest rate
exposure.
The Crédit Mutuel group entities all use
a common base for measuring overall
interest rate risk (application of
common methodology for scheduling,
scenarios and early repayment),
excluding the trading book, which is
monitored at the level of the dealing
room. Group entities have introduced
systems of limits that are consistent
with the national system. Management
and hedging decisions are taken by
Regional Committees.
Interest rate risk is analysed and hedged
globally, if appropriate, by entering into
so-called macro-hedging transactions.
These transactions are accounted for in
accordance with IAS 39 as adopted by
the European Union, i.e. in accordance
with the carved out version. High-value
or special-purpose customer transactions
may be hedged separately.
At national level
Interest rate risk is measured by two
indicators:
– risk relating to future income, analysed
in terms of the sensitivity of the margin
over the short- to medium-term (one
to five years); and
– risk relating to the instant value of
the entity, measured as the
sensitivity of net present value over a
long-term horizon.
At national level, the sensitivity limit for
net banking income over one or two
years includes new loan production
based on a scenario of moderate changes
in interest rates (+/- 1% for variable rates
and +/- 0.5% for regulated interest rates).
Sensitivity of net banking income
to a differentiated rise in interest
rates
Dynamic approach
2011
2012
2.00%
1.50%
1.00%
0.50%
0.00%
1.10%
STANDARDISED APPROACH
These
approaches
are
more
sophisticated. Credit risk is a function of
the characteristics of each exposure (or
pool of exposures) based on the four
following parameters: probability of
default (PD) by the debtor over a oneyear horizon, loss given default (LGD),
credit conversion factor (CCF) for off
balance sheet exposures, and the effective
maturity (M) . The use of internal ratingsbased approaches is conditional upon
complying with a series of quantitative
and qualitative requirements aimed at
guaranteeing the integrity of the process
as well as the estimation of parameters
used for calculating the regulatory
capital.
based approach, from 31 December
2012, for exposures to credit
institutions; and
– Advanced internal ratings-based
approach, from 31 December 2012, for
exposures to corporate customers
As a cooperative bank owned by its
members, Crédit Mutuel group’s
purpose is not to redistribute any
capital gain to its shareholders. By
opting for an internal ratings-based
approach for most of its exposures, the
group has:
– complied with requirements laid
down in the regulations and by the
ACP;
– adopted a national framework that
helps standardise practices;
– improved
its
customer
risk
segmentation, thus helping finetune its management and steering;
and
– brought up to standard its
information systems and work
methods at all levels of its
organisation given the obligation to
use ratings in its management.
1.57%
That decree describes the three pillars:
– the First Pillar introduces new
minimum capital requirements, with
the calculation of a solvency ratio for
credit, market and operational risks;
– the Second Pillar requires banks to
perform their own assessment to
determine whether they have
adequate capital to support all the
risks in their business and to
perform stress tests to assess their
capital requirements in the event of
a deterioration in the economic
environment; and
– the Third Pillar tightens up market
discipline by requiring more
extensive
disclosure
and
transparency regarding the risk
profile of banks governed by the new
framework. To this end, the Crédit
Mutuel group will release a specific
report in the first half of 2013 that
will be freely available on its
institutional website.
To measure credit risk, banks must
choose between three approaches of
rising risk sensitivity subject to the
authorisation and under the control of
their national supervisory bodies:
standardised approach, foundation
internal ratings-based approach, and
advanced internal ratings-based
approach. Each banking institution is
required to adopt the approach best
suited to the stage of development of
its activities and to its organisation.
The use of so-called internal ratingsbased approaches requires prior
authorisation by France’s Prudential
Supervision Authority (Autorité de
Contrôle Prudentiel - ACP).
INTERNAL RATINGS-BASED
APPROACHES
0.74%
To better take into account the quality
of the borrower, a Framework for the
Convergence
of
Capital
Measurements and Capital Standards
(Basel II), including notably the
implementation of an internal system
of ratings specific to each institution,
has been instituted by the Basel
Committee on Banking Supervision
and by the European Commission. In
France, these
new
prudential
requirements were transposed into
law via the publication on 20 February
2007 of a decree issued pursuant to
the recommendations of the Advisory
Committee on Financial Legislation
and Regulation (Comité Consultatif de
la Législation et de la Réglementation
Financières - CCLRF) dealing with
capital requirements for credit
institutions
and
investment
companies.
ratio concern the treatment of credit
risk, with a modification of the
calculation of weighted risks related to
unexpected losses (UL) included in the
ratio’s denominator and the possibility
of correcting the capital on the basis of
the differential between expected
losses (EL) and provisions included in
the ratio’s numerator.
0.89%
BASEL II SYSTEM
CREDIT RISK
Year 1
Year 2
The sensitivity of the Crédit Mutuel
group to a rise in interest rates is
moderate. Other scenarios, including
stress scenarios, are modelled under
the supervision of CNCM.
Parameter used exclusively for exposures to central governments, institutions and corporates for which the advanced internal ratings-based approach is used
112 CRÉDIT MUTUEL
Annual Report 2012
113
FINANCIAL REPORT
MANAGEMENT REPORT
LIQUIDITY RISK
CCCM or BFCM to cover their
refinancing needs.
The liquidity risk arises from a
mismatching in the maturity of the
applications of funds and the sources
of funds. In its most extreme form, the
risk is that an entity will be unable to
meet its obligations.
The regional federations each have an
ALM unit or committee tasked notably
with ensuring there is sufficient
liquidity to meet their commitments.
They have concluded agreements with
– a medium- to long-term liquidity
ratio defined at national level, the
general principle being to match all
assets and all liabilities and to
measure the coverage ratio of
applications by resources of
equivalent duration at different
maturities. A system of related limits
has been put into place;
– projected refinancing requirements
over five years.
Liquidity risk is monitored by the
regional groups using notably the
following indicators:
– the liquidity ratio as defined by
regulations, which compares resources
maturing in less than one month with
applications maturing in less than one
month. Some of the regional
federations and federal banks apply
limits that are stricter than those
required by the regulations;
BREAKDOWN OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES
Breakdown of maturities for liquidity risk at 31 December 2011
RESIDUAL CONTRACTUAL
MATURITIES (€M)
≤ 1 MONTH > 1 MONTH> 3 MONTHS > 1 YEAR > 2 YEARS > 5 YEARS
≤ 3 MONTHS ≤ 1 YEAR ≤ 2 YEARS ≤ 5 YEARS
NO SET
MATURITY
TOTAL
480
16,570
Assets
Financial assets held for trading
Financial assets at fair value
through profit and loss
Financial assets available for sale
Loans and advances
(including finance leases)
Investments held to maturity
725
295
3,204
4,265
4,488
3,113
5,278
1,089
1,036
72
2,130
68
306
9,979
458
434
3,476
3,740
11,161
7,789
4,107
31,165
44,735
12,013
29,571
31,722
77,143
183,716
7,576
386,476
331
3,108
2,354
643
2,223
329
2
8,990
Liabilities
Central bank deposits
BREAKDOWN OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES
Breakdown of maturities for liquidity risk at 31 December 2012
RESIDUAL CONTRACTUAL
MATURITIES (€M)
16
13
67
47
95
44
-
282
579
133
1,094
867
2,607
1,697
15
6,992
9,962
6,295
6,173
64
10
8
-
22,512
201,184
38,404
43,402
27,582
66,075
42,231
5,829
424,707
Financial liabilities held for trading
Financial liabilities at fair value
through profit and loss
≤ 1 MONTH > 1 MONTH > 3 MONTH > 1 YEAR > 2 YEARS > 5 YEARS
≤ 3 MONTH ≤ 1 YEAR ≤ 2 YEARS ≤ 5 YEARS
NO SET
MATURITY
TOTAL
Financial liabilities valued
at amortised cost
Assets
Financial assets held for trading
2,080
1,094
4,999
1,731
4,812
3,507
42
18,265
Financial assets at fair value
through profit and loss
5,315
2,439
2,792
148
1,909
69
239
12,911
Financial assets available
for sale
547
452
2,775
4 429
9,841
4,691
4,899
27,634
Loans and advances
(including finance leases)
57,258
11,187
28,630
33,317
79,348
185,132
9,039
403,911
163
173
454
980
1,779
151
-
3,700
9
45
24
52
125
88
-
343
647
165
1,187
809
3,273
1,999
15
8,095
7,726
6,206
5,212
6
89
180
-
19,419
205,551
36,647
49,328
31,562
70,086
43,180
6,444
442,798
Investments held to maturity
Liabilities
Central bank deposits
Financial liabilities held
for trading
Financial liabilities at fair value
through profit and loss
Financial liabilities valued
at amortised cost
114 CRÉDIT MUTUEL
Comments:
This table was established using the FIN50 grid in application of CB instruction 2006-04. The entities included are those included
within the prudential scope. Financial assets and financial liabilities correspond to amounts determined applying International
Financial Reporting Standards. The scheduling rules are as follows:
– Maturities are the contractual maturities for repayment of the principal.
– Shares are recorded under “No set maturity”, as are undated loans and securities.
– Debts and accrued interest are broken down according to their actual contractual maturity and, failing that, under “less than
1 month”.
– Provisions are analysed in the same way as the assets concerned.
– Non-performing loans are analysed according to their contractual date, if not yet past, and, failing that, under “No set maturity”,
in the same way as receivables in litigation.
– The market value of derivatives is recorded in the flow corresponding to the end date of the contract.
– When it is not possible to establish a reliable repayment schedule, the carrying amount is recorded under “No set maturity”.
Annual Report 2012
115
FINANCIAL REPORT
MANAGEMENT REPORT
FOREIGN EXCHANGE RISK
Each bank hedges the currency risk on
customer transactions. This risk is not
material at the Crédit Mutuel group
level.
MARKET RISK
The main group entity engaged in
market activities is CM11-CIC Group.
It trades on its own account and on
behalf of the other federations. Its
activities include refinancing the local
mutual banks' activities, securities
management
and
commercial
activities for corporate customers
(foreign
exchange
transactions,
interest-rate risk and foreign exchange
hedging).
The dealing room activities are the
subject of reports at regular intervals
covering risks as well as financial and
accounting performances.
The
permitted
activities
and
procedures for capital markets
activities are included in each regional
group's internal regulations. At
operational level, they are analysed by
the various committees involved and
reported upon regularly to the Boards
of Directors concerned.
At national level, reports produced in
respect of market activities are used to
monitor the main risk indicators.
OPERATIONAL RISK
Methods used by Crédit Mutuel
group
The Crédit Mutuel group is authorised
to use its advanced measurement
approach (AMA) for calculating
regulatory capital requirements in
respect of operational risk, save for the
deduction of expected losses from
capital requirements, as indicated
below:
– Authorisation given since 1 January
2010 for all entities included in the
consolidation scope other than the
foreign subsidiaries, the Cofidis
Group and CM-CIC Factor ; and
– Authorisation extended to CM-CIC
Factor since 1 January 2012.
116 CRÉDIT MUTUEL
The deduction of insurance as a riskmitigating
factor
for
capital
requirements in respect of operational
risk under the advanced measurement
approach (AMA) has been authorised
by the ACP and was applied for the first
time in the interim financial
statements for the six months to 30
June 2012.
General framework
The system for measuring and
controlling
operational
risk
(progressively implemented since
2002) rests on foundations common to
the entire Crédit Mutuel group and
common quantitative measurement
methods. Risk mappings are performed
for each business line, activity group
and risk type in close collaboration with
the functional departments. These
departments define a standardised
framework for analysing losses and
draw up expert-based modelling for
comparison against scenario-based,
probabilistic estimates.
For its modelling, the group relies
notably on a national database of
internal loss events, in addition to
which it has access to an external
database on a subscription basis. It
also relies on the scenarios developed
during the mapping process and in the
statistical studies drawn up in
compliance with common procedures
and regulatory requirements.
Main objectives
The operational risk management
policy implemented by the group is
designed to achieve the following:
– improve group management by
controlling risks and related costs;
– at human level: protect people,
foster individual responsibility,
autonomy and controls, and
capitalise on the skills within the
group;
– at economic level: preserve margins
by managing risks close to the
ground in all activities;
– at regulatory level: meet effectively
the requirements of Basel II and
demands
emanating
from
supervisory authorities.
Structure and organisation
The group has a clearly-identified
function responsible specifically for
the management of operational risk,
which coordinates and consolidates
the
entire
system
and
its
implementation at the level of each
entity. In this respect, it:
– defines and manages the reference
databases as well as the risk
measurement methods and models;
– organises the reporting of loss
events and key risk indicators (KRI);
– draws up the mappings and
produces the modelling;
– defines group methodologies;
– directs action plans for mitigating
risks; and
– manages financing plans.
This function is coordinated by the
operational risk managers (one at
each regional group and at each entity
of a material size). Their work is
coordinated by the national function
under the responsibility of the Risk
Management
department
of
Confédération Nationale du Crédit
Mutuel.
Reporting and general oversight
The reporting and general oversight of
operational risks are based on the
following principles:
– providing information at regular
intervals to the Board of Directors
covering incurred losses;
– providing ad-hoc reports to the
national management teams setting
out the risk profile analysed
according to the risk structure
defined by the group, capital
requirements, losses and provisions
in respect of loss events.
SOCIAL AND ENVIRONMENTAL INDICATORS
Promoting democracy, proximity and
local responsibility and contributing to
economic stability, and the development
of employment and the regional
economy are cooperative values that
Crédit Mutuel group holds dear. In a
landscape rocked by a crisis extending
beyond finance to the economic, social
and moral spheres, the cooperative
bank’s efforts have focused on
addressing to the very best of its ability
the expectations of its customers and
7.4 million members, as well as the
needs of society.
At the initiative of many directors
representing the members, corporate
social responsibility and sustainable
development have long been uppermost
preoccupations for the group. A formal
approach was adopted more than seven
years ago that has led to the gradual
introduction and expansion of a
reporting
system
covering
the
commitments and actions of the various
group entities. As cooperative balance
sheets and other reports on our
cooperative endeavours were already
being produced by the regional
federations, this
has
facilitated
compliance with new legal requirements.
This mobilisation has been extended
from the local mutual banks to the
subsidiaries and our collective expertise
strengthened as a result.
ROBUST
GOVERNANCE MODEL
The cooperative ethos is exercised at
regular intervals, as the 7.4 million
members and customers, applying the
one-person, one-vote principle, elect
the group’s 24,000 directors and
participate in its decision-making
processes. The number of members
attending or represented at the
federations’ general meetings has
been extremely stable at around
390,000 over the last five years.
ECONOMIC AND SOCIETAL
APPROACH WITH DEEP
LOCAL ROOTS
Because of the quality of its
cooperative management and its
substantial reserves, Crédit Mutuel
group is often ranked as France’s safest
bank; in 2012 it was the turn of Global
Finance. Thanks to its local roots, its
customer-centric strategy and solid
financial fundamentals, the group
preserved its good credit ratings,
ensuring continued interest on the
part of both French and international
investors throughout 2012. The group
regularly receives industry awards
recognising its endeavours based on
trust, financial solidity and the quality
of services provided to members and
customers. Crédit Mutuel, which very
early on promoted its cooperative and
mutualist values, is regularly cited as
one of the premier banking brands by
French people(1).
BANKING ACCESSIBILITY
Crédit Mutuel’s founding principles
making people the priority, promoting
mutual aid, putting money to work for
society, etc. remain attuned to the
times. Solidarity, responsiveness and
proximity are values which find
expression on a daily basis in the
quality of our products and services
and in the quality of the relations
between the local mutual banks and
each member-customer.
Geographical coverage by Crédit
Mutuel’s banking institutions remains
diversified and is improving constantly.
Crédit Mutuel offers products and
services through nearly 6,000 points of
sale in France and abroad. It opened
nearly 20 local mutual banks in 2012.
With a solid presence in city peripheries,
Crédit Mutuel has made efforts to cover
all inhabited areas. In 2012, based on
the zoning applied in France, access to
products and services was provided by
one or other of the group’s networks in
nearly 40% of rural areas and nearly
45% of free urban zones .
Guaranteeing universal access to a bank
account at an affordable rate: Facil’Accès,
a programme started up in 2009, offers
alternative payment solutions to people
banned from using cheques via secure
interbank cash cards requiring
compulsory prior authorisations. In
tandem with this, partnerships with
supervisory bodies have enabled Crédit
Mutuel to improve access to banking
services for protected adults.
POLICY FOCUSED ON RETAIL
CUSTOMERS AND ON
SUPPORTING VSE/SME
Offering members and customers highquality services, adapted to individual
needs, is a constant objective. In a
difficult
economic
and
social
environment, deposit taking has
increased strongly, underlining the trust
in local banking.
However, access to credit remains a
major challenge for both retail and
corporate customers, who need access to
simple products.
Crédit Mutuel group is an active partner
of very small enterprises (VSE) and small
and medium-sized enterprises (SME). In
the context of a general slowdown in
economic activity, the production of
equipment and short-term business
credits by the group increased by 3.1%
compared with 2011 and represented
total outstandings of €61.7 billion. Such
loans contribute to sustaining the local
economic fabric and employment
basins.
To facilitate access to financing for
(1) 8th in the Posternak-Ipsos barometer.
(2) Of which 422 Crédit Mutuel local mutual banks, 1,600 remote cash points and 87 CIC branches.
(3) 23 Crédit Mutuel local mutual banks and 22 CIC branches are located within or not more than 500 metres from a free urban zone.
Annual Report 2012
117
FINANCIAL REPORT
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micro-businesses, procedures have
been developed with two guarantee
companies, Oséo and France Active
Garantie.
In addition to conventional customer
loans and advances, Crédit Mutuel
financed microcredits and credits
totalling €216 million in 2012 by
through the ADIE, France Active
Garantie and France Initiative Réseau
networks.
Crédit Mutuel is involved in business
start-ups and job creations:
– through support partnerships
working with support networks:
France Initiative, France Active, BGE
(formerly Réseau Boutiques de
Gestion), France Active and ADIE.
These networks seek to create and
consolidate employment, in priority
for those excluded from the labour
market (job seekers, minimum
benefit recipients, disabled persons,
etc.);
– by facilitating access to credit, as
well as extending technical and
financial support; and
– directly through the associations
and foundations created by the
regional federations
notably
Créavenir and Ark’ensol. These
associations assist the mutual banks
to identify projects, which they
support by providing financing
(honour loans, repayable advances,
grants or guarantees) and human
resources to help entrepreneurs start
up new ventures or take over existing
businesses. Financing criteria vary
according
to
the
regional
organisations, but local anchoring
remains the common denominator.
With more than 435,000 associations
as clients, the group is an active
partner of one in three associations,
rising to nearly 60% in the case of
works councils. The group is particular
present in the social and humanitarian
aid sectors.
SUPPORT MEMBERS
AND CUSTOMERS
AND PROMOTE MUTUAL AID
In furtherance of its cooperative and
mutualist commitments, Crédit
Mutuel proposes solutions to
support the economic and social
integration of people in difficulty.
Local mutual banks know when to
extend a “helping hand” to members
and customers through customised
solutions and adapted financing.
Crédit Mutuel is strongly involved in
the distribution of subsidised loans.
Non-remunerated elected representatives
work hand-in-hand with the employees
of the cooperative bank to coordinate the
structures overseeing internal solidarity:
economic and social aid committees,
solidarity commissions, and solidarity
credit unions. They work with
associations and social bodies to
accompany persons in difficulty.
Particular attention is paid to instances
where people have experienced a
sudden or accidental change in their
personal or professional situation: illness,
redundancy, and other everyday mishaps
To address the difficulties experienced by
people with serious health problems, the
local mutual banks have devised the
Aeras convention to facilitate access to
insurance and credit. In addition, guides
dealing with solidarity practices have
been published by the federations to
assist
directors
and
customer
representatives in providing concrete
answers to the specific needs of
members who are in difficulty.
Crédit Mutuel was the first bank to
experiment with personal microcredits
in partnership with the Secours
Catholique back in 2004. Microcredits
have since been inserted into a Staterun system managed by the Social
Cohesion Fund (Fonds de Cohésion
Sociale - FCS). Crédit Mutuel assumes
50% of the risk on these credits, cover
for the remainder being provided by
the Social Cohesion Fund through an
agreement with Caisse des Dépôts et
Consignations
(CDC).
Similar
agreements have been signed with
other partners, notably Familles
Rurales, which provides access to social
microcredits outside urban areas.
Set up in 2005, Crédit Mutuel Nord
Europe’s
Caisse
Solidaire
is
coordinated by a network of 185 nonremunerated local mutual bank
directors. It arranges credits for
periods of 36 months for people in
precarious situations.
In the case of Fédération Centre Est
Europe, it is the local mutual banks
that continue to decide how support is
extended to members in difficulty.
Based on their extensive knowledge of
members and customers and assisted
by their directors, the banks act
proactively, arranging proximity
credits to help members and
customers with temporary difficulties.
In connection therewith, more than
€35 million has been released by local
mutual banks to fund 22,000 projects
by members and help them through
precarious situations.
AN INCREASINGLY
STRUCTURED SRI OFFER
Socially Responsible Investing (SRI) is
an investment process that seeks to
achieve ethical, social, environmental
and governance objectives alongside
purely financial ones. Companies in
which SRI funds are invested are
selected applying a rigorous process.
More than €8 billion of SRI assets are
managed by the group’s three
management companies(2).
FAIR PRACTICES
Most group entities apply the
provisions of the Code of Ethics and
Professional Conduct adopted by the
group in April 2006. This code sets out
the rules of conduct applicable to the
directors and employees according to
their responsibilities. It is based on the
following general principles: serve as
best as can be the interests of the
members and customers and observe
strictly confidentiality rules. Members
of staff holding sensitive positions are
governed by even stricter rules
governing and limiting transactions
entered into personally in particular.
This code is a public document, which
can be obtained on the group’s
websites. Its foreword recalls the
commitments of Crédit Mutuel to:
– encourage the participation of
members in the activities and
governance of their local mutual bank;
– build strong and lasting relations
with members and customers
based
on
reciprocal
trust,
transparency and compliance with
mutual commitments;
– listen to, advise and help members
and customers with their projects
and their difficulties;
– offer high-quality products and
services to members and customers;
– contribute to local development and
employment, by encouraging people
to save and channelling deposits into
the local and regional economy; and
– contribute to improving the living
environment, resolving society’s
problems and promoting sustainable
development.
In furtherance of its commitment to
transparency and clarity, the group
reaffirms its pledge to provide
information and practical advice to
serve everyone and accessible to all.
Accordingly, Crédit Mutuel has
honoured all the commitments given
in connection with the Advisory
Committee on the Financial Sector
(Comité Consultatif du Secteur
Financier - CCSF), of which it is a lead
member.
Simple-to-understand
guides (Guides Clarté) and tariff
schedules for transactions and services
are published at regular intervals for
the various customer categories
(individuals, businesses, companies,
farmers and associations).
The group has also set up a system
for the prevention of money
laundering and terrorist financing
that is fully compliant with regulatory
requirements. This system relies
notably on a network of AML/CFT
coordinators at the level of each entity
in France and abroad. Permanent,
periodic and compliance controls
are performed to check that these risks
are covered and that the procedures in
place are coherent.
LABOUR POLICY GUIDED
BY MUTUALIST VALUES
The group’s 79,060 employees benefit
from favourable collective bargaining
agreements in terms of labour policy,
job protection, paid leave and
vocational training.
The group’s overall labour policy is
guided by its core values. This is
reflected in a remuneration system that
is not commission-based, which is
completed by compulsory and
voluntary profit-sharing schemes that
are favourable to the employees.
Social advancement is emphasised at
all levels of responsibility within the
organisation. This rests on constant
and significant investment in
training (65% of employees attended
training courses in 2012), generous
amounts of time for self-training, highquality social dialogue and a noncentralised organisation encouraging
autonomy at the same time as
collective recognition. This policy
improves the employees’ chances of
mobility, notably from back office
functions to more sales-oriented
functions such as coordination and
management. The main challenges are
to preserve employment, give
proper recognition to employees
and foster their loyalty (95% of
contracts are permanent), promote
diversity at recruitment level and
improve further equal opportunities at
the workplace. Several regional groups
(CMNE, CMN, etc.) have signed
diversity or gender equality charters,
implemented notably in their
recruitment processes and career
planning. The proportion of women
appointed to management grade
positions has risen steadily (from 26%
in 2007 to 34% in 2012), so too that
elected as directors.
Crédit Mutuel maintains a regular
dialogue with staff representatives. On
19 June 2012, it signed a collective
bargaining agreement dealing with
trade union rights and social
dialogue with all six of its
representative
trade
union
organisations.
Employer-employee
bodies responsible for the supervision
and oversight of training and
employment
(National
Joint
Commission
on
Employment,
Observatory of Professions) also
participate in the reflection on
developments
in
the
sector’s
businesses. In 2012, the Crédit Mutuel
arm of the Observatory of Professions
embarked on an internal analysis of
changes in banking relations stemming
from customer expectations and new
technologies and the consequences
arising therefrom organisationally and
for the development of careers.
AN INCREASINGLY
STRUCTURED APPROACH TO
SUSTAINABLE DEVELOPMENT
Given its activity as a service provider,
the environmental impacts of Crédit
Mutuel’s activities are limited.
Nevertheless, areas have been
identified where there can be
progress and quantified objectives
have been set that take into account
the specific nature of our activities
(reduction in the consumption of
paper, more efficient travel planning,
reduction in energy consumption:
lighting, heating, putting computers in
sleep mode, etc.).
The group-sponsored corporate social
responsibility project means that ad-hoc
CRS reporting has been produced at
national level since 2006. More
recently, it has led to reflection on
common objectives for reducing
(1) Microcredits are intended to prevent or remedy precarious situations and to provide or restore access to employment. Microcredits vary from €500 to €3,000, with interest
charged at preferential rates.
(2) The group’s three asset management companies are CM-CIC AM, Fédéral Finances and La Française AM.
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119
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MANAGEMENT REPORT
greenhouse gas emissions and on
how to go about this process. This has
resulted in a common approach being
adopted by all group entities, notably
the definition of a common
methodology and areas of progress.
All group entities meeting the criteria
defined by Decree 2011-829 of 11 July
2011 drew up a carbon balance
statement . The relevant information
was reported and published before
31 December and commitments given
with regards to these statements.
Several initiatives were taken by the
group to improve commuting:
car-sharing services (intranet or
extranet) were started up by Crédit
Mutuel de Bretagne and Crédit
Mutuel Centre Est Europe, while
Cofidis co-financed a car-sharing
service at Parc de la Haute Borne.
For a number of years, Crédit Mutuel
has
been
behind
numerous
environmental initiatives at local and
regional levels. In particular, the group
is subsidising the development of
renewable energies and has financed
several investments in methane
production and wind energy plants.
Finally, the group is involved in many
corporate citizenship projects to
promote sustainable development,
notably to help with the emancipation
of populations in emerging countries.
In particular, the group was behind the
“Together, let's rebuild Haiti” operation,
with as two objectives to finance the
operation, reconstruction and development of the French Hospital in Port-auPrince and build a housing quarter.
On a more permanent basis, Centre
International du Crédit Mutuel helps
populations in emerging countries take
charge of their economic and social
development by creating autonomous
savings and credit cooperative societies, whose management is transferred gradually to the members.
In this way, Crédit Mutuel group is
looking to develop the cooperative
model, which through the example it
sets nurtures the seeds of democracy.
METHODOLOGY
The production of corporate social
responsibility (CSR) indicators stems
from a determination to understand
and provide information about the
behaviours of group entities and their
contribution
to
society.
The
measurement
and
reporting
methodology developed in 2006 has
been extended gradually to all group
banking and insurance entities. It is
regularly updated and enhanced by a
CSR working group set up at national
level, which brings together all Crédit
Mutuel regional federations and the
group’s main subsidiaries.
This working group meets at least six
times each year, enabling group entities
to exchange information about internal
initiatives and reflect on good practices
for implementing corporate social
responsibility at company level.
Exchanges with stakeholders and other
cooperative banks have also enabled
parties to share knowledge about
governance indicators.
This methodology, which is the product
of a collective effort, defines the rules for
collecting, calculating and consolidating
indicators, including the scope of
application and controls to be
performed. This methodology is
intended more particularly for the
national coordinators involved in the
reporting at the Crédit Mutuel regional
federations and the group’s main
subsidiaries. Its application may require
the involvement of experts. The
methodology defines the audit trail for
both internal and external verifications.
This methodology constitutes a common
framework for collecting information
within the group on an annual basis.
Nearly 400 items of information are
collected and reviewed at regular
intervals, based upon which 39 indicators
are produced that are applicable to the
group’s activities (out of the 42 required
under Article 225 of the Grenelle II Act)
along with a series of indicators on the
group’s cooperative and civic activities.
This work is greatly facilitated by the
publication of a specific CSR weekly
newsletter for more than four years now.
The CSR indicators selected by the
group are based on the different existing
reporting standards, notably:
– Article 225 of the Grenelle II Act;
– Decree 2011-829 of 11 July 2011 on
carbon balance statements;
– principles defined by the International
Co-operative Alliance (ICA);
– CoopFR
cooperative
identity
statement;
– International Labour Organization
(ILO) Recommendation No. 193 on the
promotion of cooperatives;
– OECD Guidelines;
– United Nations Global Compact
(member since 2004);
– Global Reporting Initiative version 3
(GRI3);
– transparency code published by the
French
Asset
Management
Association (Association Française de
Gestion Financière - AFG) and French
Social Investment Forum (Forum pour
l’Investissement Responsable -FIR);
– quality assurance label of the intertrade-union committee for employee
savings (Comité Intersyndical de
l'Épargne Salariale - CIES);
– regular exchanges with stakeholders
(members’ general meetings, nongovernmental
organisations,
corporate social responsibility rating
agencies, etc.); and
– collective reflections about CSR
practices with European cooperative
banks as well as cooperatives in other
sectors.
In terms of scope, the indicators cover
the group’s banking and insurance
activities, representing 93% of total
headcount, its media activities having
been excluded.
For details regarding the composition of
the sub-groups, please refer to the reports
published by the reporting entities.
CORPORATE SOCIAL RESPONSIBILITY INDICATORS
AREA
MEASUREMENT INDICATOR
COVERAGE RATE
Governance
Number of members
100%
Corporate, social
and environmental Number of employees (FTE)
responsibility
93%
98%
SCOPE EXCLUSIONS
No exclusion: all core cooperative activities
covered
Based on total group (excluding media
activity)
Based on banking and insurance activities
as a unit
CROSS-REFERENCE TABLE - GROUP
I. Subject to the provisions of the third paragraph of Article R. 225-105, the Board of Directors
or Executive Board of the company meeting the conditions set out in the first paragraph
of Article R. 225-104 shall disclose, pursuant to the provisions of the fifth paragraph
of Article L. 225-102-1, the following information in its report:
1° Social information
a) Employment
➲ Total headcount and breakdown by gender, age and geographic area
➲ Recruitments and dismissals
➲ Compensation and its evolution
b) Organisation of work
➲ Organisation of working hours
c) Employee relations
➲ Employee-management dialogue organisation, notably procedures for informing,
consulting and negotiating with staff
➲ Assessment of collective bargaining agreements
d) Health and safety
➲ Health and safety conditions at work
➲ Assessment of agreements with unions and staff representatives regarding health
and safety at work
e) Training
➲ Training policies implemented
➲ Total hours of training
f) Equal treatment
➲ Measures to promote gender equality
➲ Measures to promote the employment and integration of disabled people
➲ Anti-discrimination policy
Indicators produced
by Crédit Mutuel contained
in CSR report
SO 1 to SO 12
SO 13 to SO 26
SO 73 to SO 77 and SO 80 à SO 82
SO 27 to SO 37
SO 67 ; 78 ; 79 ; 87
SO 83 to SO 86
SO 38 to SO 44
SO 45
SO 46 to SO 55
SO 50
SO 56 to SO 63
SO 68 to SO 72
SO 64
(1) The CMAG carbon balance statement is being finalised (250-employee threshold for companies in France’s Overseas Departments and Territories). Fédération du Crédit Mutuel
Massif-Central and Fédération du Crédit Mutuel Savoie-Mont Blanc are not required to publish carbon balance statements as they are below the threshold.
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MANAGEMENT REPORT
CORPORATE SOCIAL RESPONSIBILITY INDICATORS
Subject to the provisions of the third paragraph of Article R. 225-105, the Board of Directors or Executive
Indicators produced
Board of the company meeting the conditions set out in the first paragraph of Article R. 225-104 shall
by Crédit Mutuel contained
disclose, pursuant to the provisions of the fifth paragraph of Article L. 225-102-1, the following information
in CSR report
in its report:
II. Subject to the provisions of the third paragraph of Article R. 225-105 and in addition
to the information stipulated in point I, the Board of Directors or Executive Board of the company
whose securities are admitted for trading on a regulated market shall disclose the following information
in its report:
2° Environmental information
a) General policy on environmental issues
➲ Organisation adopted by the company so as to take into account environmental
issues and, where necessary, environmental assessments or certification
procedures implemented by the company
1° Social information
b) Organisation of work
➲ Absenteeism
d) Health and safety
➲ Frequency and severity of accidents at work and occupational illnesses
g) Promoting and complying with the fundamental conventions
of the ILO relating to:
➲ Freedom of association and the right to collective bargaining
➲ The elimination of discrimination in respect of employment and occupation
➲ The elimination of forced or compulsory labour
➲ The effective abolition of child labour
2° Environmental information
a) General policy on environmental issues
ENV 1 to ENV 3
and ENV 40 to 41
➲ Employee training and information on environmental protection
ENV 43
➲ Resources devoted to the prevention of environmental risks and pollution
ENV 44
b) Pollution and waste management
➲ Measures for preventing, reducing or repairing discharges into the air,
water or soil with a serious impact on the environment
➲ Measures for preventing, recycling or eliminating waste
➲ Measures to take into account noise pollution and any other form
of pollution specific to an activity
c) Sustainable use of resources
➲ Water consumption and supply by reference to local constraints
➲ Consumption of raw materials and measures taken to improve
their efficient use
➲ Consumption of energy, measures taken to improve energy efficiency
and use of renewable energy
d) Climate change
➲ Greenhouse gas emissions
e) Protection of biodiversity
➲ Measures taken to preserve or develop biodiversity
3° Societal information
a) Territorial, economic and social impact of the company's activity
➲ In terms of employment and regional development
➲ On local and neighbouring populations
ENV 31 to ENV 38
ENV 39
ENV 45
ENV 4
ENV 5 to ENV 8
ENV 51 to ENV 75
ENV 31 to ENV 45
SOT 1 to SOT 9
and SOT 59 to SOT 69
SOT 10 to SOT 42
and SOT 70 to SOT 78
➲ the amount of provisions and guarantees for environmental risks, provided such
information is not of a nature that could cause serious harm to the company in an
ongoing dispute
c) Sustainable use of resources
➲ Land usage
d) Climate change
➲ Adaptation to the consequences of climate change
3° Societal information
c) Outsourcing and suppliers
➲ Importance of outsourcing and consideration when dealing with suppliers
and subcontractors of their social and environmental responsibility
d) Fair commercial practice
➲ Actions taken to prevent corruption
➲ Measures taken to foster consumers' health and safety
e) Other action taken, under this point 3, to foster human rights
Indicators produced
by Crédit Mutuel contained
in CSR report
SO 38 to SO 43
SO 44
SO 67 ; SO 78 and SO 79
SO 64
SO 65
SO 66
ENV 48
ENV 49
SOT 81
SOT 79
SOT 80
SOT 81
■ Indicators not adapted to the banking and insurance activities carried on by Crédit Mutuel group
b) Group relations with persons or organisations with interests
in the companies’ activities, notably associations working on social inclusion,
educational institutions, environmental and consumer associations,
and local residents
➲ Conditions of dialogue with these persons or organisations
➲ Partnership or philanthropy actions
c) Outsourcing and suppliers
➲ Inclusion of social and environmental issues in procurement policy
SOT 43 to SOT 47
SOT 48 to SOT 58
SOT 81
■ Indicators not adapted to the banking and insurance activities carried on by Crédit Mutuel group
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2012 CSR REPORTING - GOVERNANCE
CSR
indicator
references
INDICATORS
DIRECTORS
GOUV3
Number of local mutual banks
GOUV4
Number of elected directors Local mutual banks
GOUV5
Number of elected directors Federations
Total number of elected directors
Attendance
GOUV9
Attendance rate Meetings of local mutual banks
GOUV13
Attendance rate Meetings of federations
Renewal
Renewal rate of directors
GOUV27
Local mutual banks
GOUV28
Federations
Representativeness and parity
GOUV33
Directors - % of women
(local mutual banks
and federations)
GOUV34
GOUV35
GOUV58
GOUV59
Newly elected directors % of women
Chairpersons % of women
Training
% of trained directors
Hours of training
per trained director
2012 CSR REPORTING - SOCIAL INFORMATION
2012
2,116
24,091
2,104
23,980
444
521
Grenelle II
(2012)
Art
R 225-105
OECD GRI3
PR1
II-6
24,091
23,980
PR2
III-4-g
80%
70 à 80%
PR1
II-6
85%
86%
PR2
III-4-g
ILO
UN
Rec no. Global
193 Compact
CSR
INDICATORS
indicator
references
EMPLOYMENT
Headcount (FTE)
SOC1
Total headcount
SOC2
Of which France
SOC5
Of which non-management grade
SOC7
Of which women
SOC12
Of which employed
under a permanent contract
Recruitments
SOC13
Total number of recruitments
SOC14
Of which men
SOC16
Of which under a permanent
contract
Number of employees with permanent
contracts having left the organisation
SOC20
Of which redundancies
SOC22
Existence of planned redundancy
schemes or other plans for reducing
headcount?
7.32%
4.50%
7%
n/s
29%
28%
44%
42%
21%
22.1%
43.49%
9.76
49%
7.63
PR5
11.3
PR1
II-6
SOC38
10.2
7.3
1.1%
PR2
III-4-g
SOC39
SOC40
MEMBERS AND CUSTOMERS
GOUV61
Number of customers,
11.4
local mutual banks, (million)
GOUV62
Of which private individuals (million)
10.3
GOUV63
Number of members (million)
7.4
GOUV64
Increase in membership
1.3%
from previous year
GOUV65
% of individual clients who are
72%
members
Attendance at local general
meetings
GOUV67
Number of members convened
7.3
(million)
GOUV68
Number of members present
388,551
and represented
GOUV70
% attendance to votes
6.12%
124 CRÉDIT MUTUEL
2011
PR2
III-4-g
III-4-g
PR3
2011
Grenelle II
(2012)
Art
R 225-105
73,775
61,848
59%
55%
95%
72,937
62,163
62%
55%
95%
al1-1-a-1
al1-1-a-1
al1-1-a-1
al1-1-a-1
11,412
4,720
4,041
13,374
5,294
5,317
al1- 1-a-2
al1- 1-a-2
al1- 1-b-1
8,717
8,218
663
No
772
No
al1- 1-a-2
al1- 1-a-2
65,836
6,406
91%
9%
65,393
7,829
89%
11%
al1- 1-b-1
al1- 1-b-1
958,809
922,000
al1- 1-b-1
620,107
17,469
538,396
17,471
al1- 1-b-1
al2-1-d-1
7
NR
al1- 1-b-1
295
370
al2-1-d-1
1,867,342
1,842,695
al1-1-e-2
OECD GRI3
ILO
UN
Rec
Global
no. 193 Compact
PR7
LA1
PR7
LA1
PR7
LA1
PR7
II-4
PR7
II-4
ORGANISATION OF WORK AND WORKING
HOURS, ABSENTEEISM
SOC28
SOC29
SOC30
SOC31
SOC32
SOC43
71%
SOC44
7.3
SOC50
409,853
2012
Organisation of working hours
(staff with permanent contract)
Full time/part time
Number of full-time employees
Number of part-time employees
% of full-time employees
% of part-time employees
Absenteeism (including reasons)
Total number of lost days
Of which due to illness
Of which due to work-related
injuries
Number of occupational diseases
Health and safety conditions
Number of occupational injuries
reported, resulting in lost days
Training and professional
insertion
Total hours devoted to training
employees
LA7 - LA8
- LA9
IV-4
LA7 - LA8
- LA9
5.7%
Annual Report 2012
125
FINANCIAL REPORT
MANAGEMENT REPORT
2012 CSR REPORTING - SOCIAL INFORMATION
CSR
indicator
references
INDICATORS
EQUAL OPPORTUNITIES
Gender equality
at professional level
SOC60
% of women in management
positions
SOC63
% of women amongst
newly promoted managers
Promoting and complying
with ILO’s fundamental
conventions
SOC67
Number of convictions in France
for impeding the liberty to work
Employment and integration
of disabled people
SOC68
Number of disabled employees
SOC71
Disabled employees
as a % of total headcount
SOCIAL DIALOGUE
Remunerations and change
SOC73
Total payroll (€ billion)
SOC74
SOC75
SOC76
SOC79
SOC80
SOC83
126 CRÉDIT MUTUEL
Average annual gross salary all grades
Average annual gross salary –
non-management
Average annual gross salary management
Numbers of time staff representatives
consulted (Works Council, Committee
for health, safety and working conditions, Energy Performance Diagnosis )
Social security contributions
Total amount of social security
contributions paid (€ billion)
Professional relations and
collective bargaining agreements
Agreements signed in 2012
(date and nature)
2012
2012 CSR REPORTING - ENVIRONMENTAL INFORMATION
2011
34%
24%
36%
33%
Grenelle II
(2012)
Art
R 225-105
OECD GRI3
ILO
UN
Rec
Global
no. 193 Compact
LA13
CSR
INDICATORS
indicator
references
CONSUMPTION OF RESOURCES
Consumption of resources
Water (cubic metres)
ENV4
Total water consumption
Energy (MWh)
ENV5
Total energy consumption
(MWh)(*)
ENV9
None
None
al2-1-g 2
693
0.94%
637
1%
al1-1-f-2
Paper (tonnes)
Total paper consumption
(tonnes)
2012
2011
Grenelle II
(2012)
Art
R 225-105
OECD GRI3
ILO
UN
Rec Global
no. Compact
193
600,862
590,933
al1- 2-c-1
V
EN8
520,325
493,740
al1 - 2-c
V
EN3
15,933
16,525
al1- 2-c-2
V
337
n/a
al1- 2-b-1
199
n/a
al1- 2-b-1
MEASURES FOR REDUCING
ENVIRONMENTAL IMPACT
AND GREENHOUSE GAS EMISSIONS
ENV31
ENV34
2.8
2.7
al1-1-a 3
III-5-c
and
IV-1
40,460
39,000
al1-1-a 3
IV-2
31,559
30,700
al1-1-a 3
51,819
51,700
al1-1-a 3
4,106
ND
al1-1- c -1
ENV39
ENV43
ENV44
Actions to reduce emissions
Number of videoconference
equipment sets
Number of documents and
pages digitised (million)
Waste
Measures implemented in 2012
to reduce the consumption of
resources ( paper, etc.) and production of waste
Actions to raise awareness
Actions to inform and train
employees in environment
protection
Human resources devoted to
CSR
See
comment
al1- 2-d-1
V
See
comment
al1- 2-a-2
V
35
n/a
al1- 2-a-1
(*) A new reporting method, notably for the production of the 2011 carbon balance statements, was put into place gradually in 2011.
Accordingly, part of the 2012 data consists of estimates.
1.7
See
comment
1.4
III-5-c, IV1 and IV2
al1-1- c -1
Annual Report 2012
127
FINANCIAL REPORT
MANAGEMENT REPORT
2012 CSR REPORTING - SOCIETAL INFORMATION
CSR
indicator
references
INDICATORS
TERRITORIAL IMPACT
SOT1
Number of points of sale
(Crédit Mutuel group)
SOT7
% of points of sale in rural
areas
SOT8
% of free urban zones covered
by points of sale
Microcredit
Subsidised personal
microcredit (partnership)
SOT10
Number of microcredits
awarded in the year
SOT13
Amount of microcredits
financed in year (€)
SOT11
Average amount
of microcredits financed (€)
Intermediated professional
microcredit
SOT15
Support to ADIE
SOT16
Number of application
processed
SOT17
Amount of the credit lines
made available (€)
SOT18
Support to France Active
Garantie
SOT19
Number of new microcredits
financed
SOT20
Amounts guaranteed (€)
SOT18
Support to France Active
Garantie: NACRE mechanism
SOT19
Number of NACRE loans
granted tied to a group loan
SOT20
Amount of loans (€)
SOT23
SOT24
Support to France Initiative
Réseau (FIR)
Number of additional bank
loans granted
Amount of additional bank
loans granted (€ million)
Total number of microcredits
in partnership
Total amount of microcredits
in partnership
ISR
SOT28
128 CRÉDIT MUTUEL
Encours ISR (milliards €)
2012
2012 CSR REPORTING - SOCIETAL INFORMATION
2011
Grenelle II
(2012)
Art
R 225-105
5,961
5,943
39%
31%
44%
41%
OECD GRI3
al1-3-a-1 and
al1-3-a-2
al1-3-a-1 and
al1-3-a-2
al1-3-a-1 and
al1-3-a-2
ILO
UN
Rec
Global
no. 193 Compact
II-3
FS13
II-3
FS13
II-3
FS13
CSR
INDICATORS
indicator
references
SOCIALLY RESPONSIBLE SAVINGS
Socially-responsible passbook
deposits (Livrets d'Epargne
pour les Autres - LEA)
SOT33
Outstandings excluding
capitalisation (€ million)
871
2,503,508
1,820,000
2,100
2,586
1,258
1,224
4,300,000
4,150,000
1,094
990
16,352,373
13,407,593
al1-3-a-1 and
al1-3-a-2
PR7
al1-3-a-1 and
al1-3-a-2
PR7
al1-3-a-1 and
al1-3-a-2
al1-3-a-1 and
al1-3-a-2
PR7
II-3
PR7
II-3
II-3
II-3
FS14
FS14
770
23,245,787
23,409,964
2,768
2,932
170
171,5
7,155
6,787
Associations market
Number of not-for-profit organisations (associations, trade
unions, works councils, etc.)
which are clients
Patronage and sponsoring
SOT49
Budget of Fondation du Crédit
Mutuel at national level or
budgets awarded (€ million)
SOT52
Total budget earmarked for patronage and sponsorship (€ million)
FINANCING OF ENVIRONMENTAL
PROJECTS
Zero-interest rate eco-loans
Total amount of loans granted
(€)
SOT64
Average amount of loans
granted (€)
LOANS FOR RENEWABLE ENERGY AND
ENERGY EFFICIENCY PROJECTS
SOT65
al1-3-a-1 and
al1-3-a-2
al1-3-a-1 and
al1-3-a-2
PR7
PR7
II-3
al1-3-a-1 and
al1-3-a-2
al1-3-a-1 and
al1-3-a-2
PR7
II-3
PR7
II-3
II-3
SOT71
216,401,668 214,315,557
6.0
4.3
al1-3-a-1 and
al1-3-a-2
Outstandings (€ million)
SOT40
SOT69
843
2011
Grenelle II
(2012)
Art
R 225-105
OECD GRI3
ILO
UN
Rec Global
no. Compact
193
33.8
22.9
al1-3-a-1 and
al1-3-a-2
FS1
91.7
97
al1-3-a-1 and
al1-3-a-2
FS1
435,254
422,364
al1-3-a-1 and
al1-3-a-2
PR7
II-3
FS7
2.6
2.9
al1-3-b-2
PR7
II-3
EC1
32.9
31.6
al1-3-b 2
PR7
II-3
EC1
121,828,453 121,000,000
al1-3-b 2
FS8
15,287
16,900
al1-3-b 2
FS8
4,648
n/s
al1-3-b 2
1.2
0.5
al1-3-b 2
2,041
53.6%
2,273
53.2%
al1- 3-b-1
al1- 3-b-1
343.2
338.3
180.3
35.7
179.3
33.9
Socially-responsible
employee savings
SOT37
1,192
2012
FS1
Number of projects financed
(business customers and farmers)
Social products and services
Outstandings in respect of regulated social loans (low-income
rental housing loans and leaseownership loans) (€ billion)
Quality of service
MEDIATION
SOT75
Number of eligible files
SOT78
% of decisions favourable
to client and systematically
applied
ECONOMIC IMPACT INDICATORS
DISCLOSED IN MANAGEMENT REPORTS
SOT83
Customer loans and advances
(€ billion)
SOT84
- Home loans (€ billion)
SOT85
- Consumer credits (€ billion)
FS1
VII-3
PR5
VII-3
PR5
al1-3-b 2
al1-3-b 2
Annual Report 2012
129
FINANCIAL STATEMENTS
OUTLOOK
In 2013, the group will press on with the brisk development of its commercial activities banking, insurance and services in its
various markets, serving the needs of individuals, associations, professionals and corporates. For the Crédit Mutuel and CIC
networks, the emphasis will be on developing bank deposit-taking in the face of lesser demand for lending in the currently
uncertain economic environment.
The group is continuing to affirm its difference as a mutual bank, focused on forging close relations with its members and
customers, by drawing on its network of local mutual banks and neighbourhood branches in France and by continuing to
expand its activities in neighbouring countries.
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2012
STATEMENT OF FINANCIAL POSITION
ASSETS (IFRS)
€M
Cash in hand and balances with central banks
Financial assets at fair value through profit or loss
Derivative hedging instruments
Available for sale financial assets
Loans and advances to credit institutions
Loans and advances to customers
Re-measurement adjustment on portfolios hedged
for interest rate risk
Financial assets held to maturity
Current tax assets
Deferred tax assets
Prepayments, accrued income and other assets
Non-current assets classified as held for sale
Deferred profit-sharing
Investments in companies accounted for using the equity method
Investment property
Plant, property and equipment
Intangible assets
Goodwill
Total Assets
31.12.2012
31.12.2011* 31.12.2011**
NOTES
16,328
62,463
2,423
101,911
59,577
343,216
8,564
54,308
1,598
97,526
46,813
338,301
8,565
54,308
1,598
97,774
46,813
338,354
1a
2a, 2c, 4, 9
3a, 4
5a, 5b, 9
1a, 9
6a, 9
1,360
16,640
1,921
1,650
21,577
2,761
0
1,857
1,753
3,564
1,364
4,851
1,138
19,405
2,146
2,001
19,517
3
738
1,883
1,441
3,566
1,356
4,916
1,138
19,405
2,146
1,962
19,517
3
738
1,496
1,441
3,566
1,356
4,916
3b
7, 9
10a
10b
11a
11c
645,216
605,220
605,096
12
13
14a
14b
15
* Restated ** Reported
LIABILITIES AND EQUITY (IFRS)
€M
Central banks
Financial liabilities at fair value through profit or loss
Derivative hedging instruments
Amounts due to credit institutions
Amounts due to customers
Debt securities
Re-measurement adjustment on portfolios hedged
for interest rate risk
Current tax liabilities
Deferred tax liabilities
Accrued charges, deferred income and other liabilities
Liabilities directly associated with non-current assets
classified as held for sale
Technical provisions for insurance policies
Provisions for risks and charges
Subordinated debt
Equity
Equity – attributable to the owners
Share capital and related reserves
Consolidated reserves
Unrealised or deferred gains or losses recognised directly in equity
Profit for the year
Non-controlling interests
Total Liabilities and Equity
31.12.2012
31.12.2011* 31.12.2011**
NOTES
343
32,376
3,635
26,993
277,187
123,451
282
31,497
4,606
32,847
257,612
119,567
282
31,497
4,606
32,847
257,612
119,567
1b
2b, 2c, 4
3a, 4
1b
6b
16
(3,451)
906
1,064
20,009
(2,812)
809
607
13,976
(2,812)
809
606
13,976
3b
10a
10b
11b
2,643
112,385
2,515
6,743
38,417
37,380
9,770
25,018
442
2,150
1,037
0
102,313
2,179
7,362
34,375
33,363
9,156
23,150
(1,088)
2,145
1,012
0
102,313
2,126
7,362
34,305
33,292
9,156
23,193
(1,170)
2,113
1,013
11c
17
18
19
645,216
605,220
605,096
20a
20a
20b
* Restated ** Reported
130 CRÉDIT MUTUEL
Annual Report 2012
131
FINANCIAL STATEMENTS
INCOME STATEMENT – IFRS
€M
Interest and similar income
Interest and similar expenses
Fees and commissions (income)
Fees and commissions (charges)
Net gains (losses) on financial instruments
at fair value through profit or loss
Net gains (losses) on available for sale financial assets
Income from other activities
Expenses on other activities
STATEMENT OF COMPREHENSIVE INCOME
31.12.2012
31.12.2011* 31.12.2011**
NOTES
23,082
(16,736)
4,337
(1,058)
22,138
(14,371)
4,497
(1,129)
22,139
(14,371)
4,497
(1,129)
22
22
23
23
994
287
18,905
(15,238)
(178)
(44)
17,093
(14,042)
(178)
(31)
17,093
(14,067)
24
25
26
26
Net banking income - IFRS
14,573
13,964
13,953
General operating expenses
Provisions, amortisation and depreciation
for non-current assets
(8,995)
(8,403)
(8,408)
27a,27b
(668)
(639)
(639)
27c
Gross operating profit - IFRS
Cost of risk
4,910
(1,254)
4,922
(1,665)
4,906
(1,663)
Operating profit – IFRS
3,656
3,257
3,243
Share in net profit or loss of companies accounted
for using the equity method
Net gains (losses) on other assets
Changes in goodwill
(160)
14
18
28
73
(7)
1
73
(7)
Profit on ordinary activities before tax – IFRS
3,528
3,351
3,310
(1,311)
(1,124)
(1,115)
2,217
2,227
2,195
Income tax expense
Total consolidated profit
Non-controlling interests
Profit attributable to the owners
67
82
82
2,150
2,145
2,113
€M
31.12.2012
31.12.2011*
31.12.2011**
Total consolidated profit
2,217
2,227
2,195
Translation differences
Re-measurement of available for sale financial assets
Re-measurement of derivative hedging instruments
Re-measurement of non-current assets
Share of unrealised or deferred gains and losses on companies
accounted for using the equity method
Total items that are or may be reclassified subsequently
to profit or loss
Actuarial gains on defined benefit plans
Total items that that will not be reclassified to profit or loss
Profit and gains and losses recognised directly in equity
Of which Owners
(9)
1,825
(10)
-
33(2)
(796)
(20)
(3)
(853)
(20)
(3)
(26)
(31)
(17)
1,780
(145)
(145)
3,852
3,680
(817)
(72)(1)
(72)
1,338
1,339
(893)
(1,302)
(1,225)
172
(1)
77
Non-controlling interests
28
* Restated ** Reported
(1) Of which €59 million being the impact at 1 January 2011 of the early application of IAS 19 (revised).
(2) New presentation of translation differences (previously in consolidated reserves).
12
29
30
31
* Restated ** Reported
132 CRÉDIT MUTUEL
Annual Report 2012
133
FINANCIAL STATEMENTS
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
€M
Shareholders' equity at 1 January 2011
SHARE CAPITAL
AND OTHER PAID IN CAPITAL
Share capital
9,018
Other paid
in capital
28
Impact of changes in accounting policies or the correction of errors
Shareholders' equity at 1 January 2011 restated
Capital increase
9,018
CONSOLIDATED
RESERVES
28
Translation
differences
Revaluation
differences
(excluding
financial
instruments)
Changes in the value of
financial instruments
Changes in
the fair value
of AFS
securities
Profit
attributable
the owners
-
3
(174)
(111)
(43)
110
(59)
43
-
20,566
110
(56)
(131)
(111)
Dividends paid in 2011 in respect of 2010
(247)
-
2,669
-
-
-
-
(15)
(1,066)
(36)
210
7
Changes in the value of financial instruments
and non-current assets reclassified to profit or loss
Profit for the year 2011
-
Impact of acquisitions and disposals on minority interests
Changes in accounting methods
Share of changes in the shareholders’ equity of associates
and joint ventures accounted for using the equity method
Changes in foreign exchange rates
2,916
(2,916)
Changes in gains and losses recognised directly in equity
-
-
-
(15)
(856)
(29)
(2,916)
32,289
1,099
51
(1)
-
Other changes
33,388
50
32,340
1,098
33,438
110
-
-
(247)
(50)
(297)
(137)
(50)
(187)
(1,117)
(8)
(1,125)
217
3
220
2,145
2,145
82
2,227
2,145
1,245
77
1,322
(218)
(218)
(127)
(345)
(3)
-3
108
-
NonTotal
controlling consolidated
interests shareholders'
equity
110
2,916
Sub-total
2,916
110
110
Shareholders’
equity
Changes in
the fair value
of derivative
hedging
instruments
20,609
Appropriation of profit for 2010
Sub-total of changes in capital linked to relations with shareholders
UNREALISED OR DEFERRED GAINS/LOSSES (AFTER TAX)
108
17
-
-
-
-
11
(3)
4
112
11
11
22
17
17
Shareholders' equity at 31 December 2011
9,128
28
23,150
110
(71)
(987)
(140)
2,145
33,363
1,012
34,375
Shareholders' equity at 1 January 2012
9,128
28
23,150
110
(71)
(987)
(140)
2,145
33,363
1,012
34,375
Capital increase
619
619
Appropriation of profit for 2011
2,145
Dividends paid in 2012 in respect of 2011
(274)
Sub-total of changes in capital linked to relations with shareholders
619
-
1,871
Changes in gains and losses recognised directly in equity
(2,145)
-
-
-
-
(9)
(143)
1,695
(18)
1
4
Changes in the value of financial instruments and non-current assets reclassified
to profit or loss
Profit for the year 2012
Sub-total
-
-
Impact of acquisitions and disposals on minority interests
-
(9)
(143)
1,696
(14)
(2,145)
619
-
-
(274)
(73)
345
(73)
1,525
(347)
272
1,525
5
105
110
2,150
2,150
67
2,217
2,150
3,680
172
3,852
30
30
(66)
(36)
41
41
(1)
40
(78)
(6)
(85)
37,380
1,037
38,417
Changes in accounting methods
Share of changes in the shareholders’ equity of associates
and joint ventures accounted for using the equity method
Changes in foreign exchange rates
Other changes
Shareholders' equity at 31 December 2012
134 CRÉDIT MUTUEL
9,747
(5)
(73)
(85)
23
25,018
16
85
(214)
794
(154)
2,150
Annual Report 2012
135
FINANCIAL STATEMENTS
STATEMENT OF CASH FLOWS
€M
Profit for the year
Corporation tax
Profit before tax
=+/- Net provision for depreciation of tangible and intangible
non-current assets
- Impairment of goodwill and other non-current assets
+/- Net charges to provisions
+/- Share of results of companies accounted for using the equity method
+/- Net loss/income from investment activities
+/- (Income)/charges on financing activities
+/- Other movements
= Total of non-monetary items included
in profit before tax and other adjustments
+/- Flows relating to transactions with credit institutions (a)
+/- Flows relating to transactions with customers (b)
+/- Flows relating to other transactions affecting financial assets
or liabilities (c)
+/- Flows relating to other transactions affecting non-financial assets
or liabilities
- Taxes paid
= Net reduction/(increase) in assets
and liabilities from operating activities
TOTAL NET CASH FLOW GENERATED
BY OPERATING ACTIVITIES (A)
+/- Flows relating to financial assets and holdings (d)
+/- Flows relating to investment property (e)
+/- Flows relating to tangible and intangible non-current assets (f)
31.12.2012
31.12.2011*
31.12.2011**
2,217
1,310
3,527
2,227
1,124
3,351
2,195
1,115
3,310
668
18
2,988
160
(79)
625
35
884
(28)
(134)
625
35
896
(1)
(134)
(925)
1,792
1,784
2,830
(2,768)
12,847
3,174
4,536
5,427
3,205
4,536
5,427
(6,555)
(18,976)
(18,966)
4,001
(1,001)
(2,778)
(1,384)
(2,778)
(1,384)
6,524
(13,175)
(13,165)
12,881
(6,650)
(6,650)
5,171
(358)
(620)
(4,686)
(153)
(514)
(4,686)
(153)
(514)
€M
31.12.2012
31.12.2011*
31.12.2011**
TOTAL NET CASH FLOW RELATING
TO INVESTMENT ACTIVITIES (B)
4,193
(5,353)
(5,353)
+/- Cash flows from or to shareholders (g)
+/- Other cash flows from financing activities (h)
272
3,643
(187)
11,027
(187)
11,027
TOTAL NET CASH FLOW RELATING
TO FINANCING ACTIVITIES (C)
3,915
10,840
10,840
(7)
103
103
20,982
12,881
4,193
3,915
(7)
(1,060)
(6,650)
(5,353)
10,840
103
(1,060)
(6,650)
(5,353)
10,840
103
EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS (D)
Net increase/(reduction) in cash
and cash equivalents (A + B+ C + D)
Net cash flow from operating activities (A)
Net cash flow relating to investment activities (B)
Net cash flow relating to financing activities (C)
Effect of exchange rate changes on cash and cash equivalents (D)
Cash and cash equivalents on opening
Cash and central banks (assets and liabilities)
Accounts (assets and liabilities) and lending/borrowing
with credit institutions
7,241
8,282
8,299
8,680
8,299
8,680
(1,041)
(381)
(381)
Cash and cash equivalents on closing
Cash and central banks (assets and liabilities)
28,223
15,986
7,239
8,280
7,239
8,280
Accounts (assets and liabilities) and lending/borrowing
with credit institutions
12,237
(1,041)
(1,041)
20,982
(1,060)
(1,060)
CHANGE IN NET CASH
* Restated. ** Reported.
* Restated. ** Reported.
136 CRÉDIT MUTUEL
Annual Report 2012
137
FINANCIAL STATEMENTS
€M
(a) Flows relating to transactions with credit institutions
break down as follows:
+/- Inflows and outflows linked to loans and advances to credit institutions
(other than items included in cash and cash equivalents),
excluding accrued interest
+/- Inflows and outflows linked to amounts due to credit institutions,
excluding accrued interest
(b) Flows relating to transactions with customers break down
as follows:
+/- Inflows and outflows linked to loans and advances to customers,
excluding accrued interest
+/- Inflows and outflows linked to amounts due to customers,
excluding accrued interest
(c) Flows relating to other transactions affecting financial
assets or liabilities break down as follows:
+/- Inflows and outflows linked to financial assets at fair value
through profit and loss
+/- Inflows and outflows linked to financial liabilities at fair value
through profit and loss
- Outflows on purchases of fixed income available for sale securities(1)
+ Inflows on sales of fixed income available for sale securities(1)
+/- Inflows and outflows on derivative hedging instruments
+/- Inflows and outflows on debt securities
(d) Flows relating to financial assets and holdings break down
as follows:
- Outflows on acquisitions of subsidiaries, net of acquired cash
+ Inflows on disposals of subsidiaries, net of cash ceded
- Outflows linked to purchases of securities of companies accounted
for using the equity method
+ Inflows linked to sales of securities of companies accounted
for using the equity method
+ Inflows from dividends received
- Outflows linked to purchases of held-to-maturity financial assets
31.12.2012
31.12.2011*
31.12.2011**
(1,899)
741
741
(869)
3,795
3,795
(4,471)
(14,479)
(14,479)
17,318
19,906
19,906
(7,559)
1,333
1,333
(298)
1,979
(3,655)
4,180
(3,655)
4,190
(677)
(20,834)
(20,834)
€M
31.12.2012
31.12.2011*
31.12.2011**
6,908
739
739
(405)
335
(218)
370
(218)
370
(e) Flows relating to investment property break down as follows:
- Outflows linked to acquisitions of investment property
+ Inflows linked to sales of investment property
(447)
89
(182)
29
(182)
29
(f) Flows relating to non-current assets break down as follows:
- Outflows linked to acquisition of non-current assets
+ Inflows linked to sales of non-current assets
(775)
155
(764)
250
(764)
250
619
110
110
(347)
(297)
(297)
12,967
(8,835)
26
(515)
18,390
(6,921)
6
(448)
18,390
(6,921)
6
(448)
+ Inflows on sales of held -to-maturity financial assets
- Outflows on acquisitions of variable income available
for sale financial assets
+ Inflows on disposals of variable income available for sale financial assets
+/- Other flows linked to investment transactions
+ Inflows linked to interest received, excluding accrued interest not yet due
(g) Cash flows from or to shareholders break down as follows:
+ Inflows from issuance of shares and similar securities
+ Inflows from sales of shares and similar securities
- Outflows linked to dividends paid
- Outflows linked to other remuneration paid
(h) Other net cash flows from financing activities break down
as follows:
+ Inflows linked to issuance of bonds and debt securities
- Outflows linked to repayment of bonds and debt securities
+ Inflows linked to issuance of subordinated debt
- Outflows linked to repayment of subordinated debt
- Outflows linked to interest paid, excluding accrued interest not yet due
* Restated ** Reported.
(88)
(1,579)
(69)
(69)
(9)
(9)
(5,499)
(5,499)
(1) ) Including re-measurements linked to the purchase or sale of variable income financial assets available for sale.
* Restated. ** Reported.
138 CRÉDIT MUTUEL
Annual Report 2012
139
FINANCIAL STATEMENTS
NOTES
NOTES TO THE FINANCIAL STATEMENTS
1 - ACCOUNTING
POLICIES
The Crédit Mutuel group is not listed and is consequently under no obligation to present financial statements in accordance with
IFRS. However, for the sake of greater transparency and comparability with other leading financial institutions, the Board of
Directors of Confédération Nationale du Crédit Mutuel, which is the group's central governing body within the meaning of Article
L.511-31 of the French Monetary and Financial Code, has decided to present consolidated financial statements according to IFRS.
These financial statements are presented in accordance with CNC Recommendation 2009-R04 relating to summary financial
statements under IFRS. They comply with the International Financial Reporting Standards adopted by the European Union. The
group elected for the early application from 1 January 2012 of IAS 19 (revised), published in the Official Journal of the European
Union on 5 June 2012 and for which application is compulsory for annual periods beginning on or after 1 January 2013 (see Note
3.12). This change resulted in the restatement of the 2011 financial statements, and also reflected the first-time consolidation, using
the equity method, of Banco Popular Español (see Note 12 to the financial statements).
Information regarding risk management and the financial crisis is presented in the group’s management report.
Table of content
PART I – ACCOUNTING POLICIES
3.14 Non-current assets
159
Note 1: Consolidation scope
141
3.15 Fees and commissions
160
1.1 Determination of the consolidation scope
141
3.16 Corporation tax
160
1.2 Composition of the consolidation scope
142
3.17 Interest payable by the State on certain loans
161
Note 2: Consolidation policies and methods
149
3.18 Financial guarantees and financing commitments
161
2.1 Consolidation methods
149
3.19 Transactions denominated in foreign currencies
161
2.2 Closing date
149
3.20 Non-current assets classified as held for sale
2.3 Elimination of intra-group transactions
149
2.4 Translation of accounts denominated in a foreign
currency
149
2.5 Goodwill
149
Note 3: Accounting policies and methods
150
3.1 Loans and receivables
3.2 Provisions for impairment of loans and receivables,
loan commitments and guarantee commitments
3.3 Leases
and discontinued operations
161
3.21. Judgements and estimates used in preparation
of the financial statements
161
Note 4: Segment reporting (IFRS 8)
162
150
Note 5: Related parties
162
150
Note 6: Standards and interpretations adopted
151
by the European Union not yet applied due
3.4 Securities
151
to their application date
3.5 Derivatives and hedge accounting
154
Note 7: Events after the end of the reporting period 163
3.6 Debt securities
156
3.7 Subordinated debt
156
3.8 Distinction between liabilities and shareholders’ equity 156
3.9 Provisions
3.10 Amounts due to customers and credit institutions
156
156
163
PART II – TABLES
1. Notes to the statement of financial position
164
2. Notes to the income statement
186
193
157
3. Notes to the statement of comprehensive income
3.12 Employee benefits
157
4. Segment reporting
194
3.13 Insurance activities
158
5. Other information
196
3.11 Cash and cash equivalents
140 CRÉDIT MUTUEL
NOTE 1: CONSOLIDATION
SCOPE
1.1 Determination
of the consolidation scope
Crédit Mutuel is a co-operative bank
governed by the Law of 10 September
1947. It is owned solely by its members, who hold member shares ('A'
shares). Members are each entitled to
one vote at general meetings, where
their powers include the election of
directors.
The three levels of organisation—local,
regional and national—operate on a
decentralised basis in accordance with
the principle of subsidiarity. The local
mutual banks, which are in closest
contact with members and customers,
carry out all the principal functions of
bank branch offices, with the other two
levels exercising only those functions
the local entities are not in a position
to carry out alone.
Under Article L.511-30 of the French
monetary and financial code,
Confédération Nationale is the central
governing body for the group. As such
it is responsible for:
– ensuring the liquidity and solvency
of the Crédit Mutuel network,
– representing Crédit Mutuel before
the public authorities and defending
and promoting its interests,
– and, more generally, ensuring the
overall cohesion of the network and
overseeing its business development
while at the same time exercising
administrative, technical and financial control over the regional groups
and their subsidiaries.
The method for consolidating a group
with such a distinctive capital
ownership structure is based on
determining a consolidating entity
that reflects the community of
members linked by shared financial
solidarity and governance.
The analysis of the control exercised by
the consolidating entity complies with
IAS 27 (revised), thus enabling the
group to present consolidated financial
statements according to IFRS.
• Consolidating entity
The consolidating entity for the Crédit
Mutuel group is composed of all the
local mutual banks, the Caisses
Fédérales (general purpose and
farming/
rural),
the
Regional
Federations, Caisse Centrale du Crédit
Mutuel, Confédération Nationale du
Crédit Mutuel, and Fédération du
Crédit Mutuel Agricole et Rural.
The capital of the consolidating entity
is thus owned exclusively by all the
members of the local mutual banks.
• Basis of consolidation
The general principles for the
inclusion of an entity within the
consolidation scope are as defined in
IAS 27 (revised), IAS 28 and IAS 31.
All the entities included in the
consolidation scopes of the regional
groups are included in the national
consolidation scope. Jointly-held
companies, not consolidated at
regional level, are excluded from the
national consolidation scope if their
total balance sheet or earnings have
an impact of less than 1% on the
consolidated equivalent. However, an
entity that does not reach this
threshold may be consolidated if its
activity or intended development is
considered a strategic investment.
majority of the voting rights, or has
the power to appoint the majority of
the members of the administrative,
management or supervisory bodies,
or has the power to govern the
financial and operating policies of an
entity by virtue of regulations or a
contract. The financial statements of
entities controlled exclusively are fully
consolidated.
– Entities controlled jointly: joint control
arises when, in accordance with the
terms of a contractual agreement,
control of an economic activity is
shared with one or more third parties
regardless of the structure or form in
which the activities are undertaken.
Entities controlled jointly are
consolidated using the proportional
method.
– Entities over which significant influence
is exercised: these are entities over
whose financial and operational
policies
the
group
exercises
significant influence but does not
have control. Entities over which the
group exercises significant influence
are consolidated using the equity
method.
Special-purpose entities are consolidated
when the conditions defined in SIC 12
are met, namely that the entity’s
activities are carried out exclusively on
the group’s behalf, the group has
decision-making or management power
to obtain the majority of the benefits
deriving from the entity’s ordinary
activities and the capacity to profit from
the entity’s benefits, and retains the
majority of the risks.
Holdings belonging to private equity
companies and over which joint control
or significant influence is exercised are
excluded from the consolidation scope
and are recognised at fair value by
option.
The consolidation scope comprises:
– Entities controlled exclusively: exclusive
control is presumed to exist when the
group controls directly or indirectly a
Annual Report 2012
141
FINANCIAL STATEMENTS
NOTES
1.2 Composition of the consolidation scope
The following entities were included in the Crédit Mutuel group's consolidation scope at 31 December 2012:
Consolidated entities are presented according
to the sectors used for preparing segment information under
IFRS 8. Accordingly. for example. entities included
under Retail Banking do not necessarily have the legal status
of credit institutions
31.12.2012
%
31.12.2011
Method
%
Control
Interest
+
Control
Interest
+
100.00
6.99
50.00
4.37
50.00
20.00
100.00
100.00
100.00
100.00
100.00
26.21
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.98
99.99
100.00
100.00
100.00
100.00
100.00
0.00
100.00
100.00
100.00
66.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
0.00
100.00
0.00
0.00
100.00
100.00
100.00
100.00
100.00
97.77
6.84
50.00
4.37
50.00
20.00
100.00
100.00
100.00
100.00
100.00
26.21
100.00
97.77
97.77
100.00
97.77
97.77
97.77
99.45
97.78
97.77
97.87
97.77
100.00
100.00
0.00
98.79
97.78
97.78
28.11
42.59
42.59
42.59
42.59
42.59
42.59
42.59
42.59
42.59
0.00
97.77
0.00
0.00
42.59
42.59
97.77
99.26
97.77
FC
EM
PM
EM
PM
EM
FC
FC
FC
FC
FC
EM
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
NC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
NC
FC
NC
NC
FC
FC
FC
FC
FC
100.00
6.99
0.00
0.00
50.00
20.00
100.00
100.00
100.00
0.00
100.00
24.64
99.99
100.00
100.00
100.00
100.00
100.00
100.00
99.98
99.99
100.00
100.00
100.00
100.00
0.00
100.00
100.00
100.00
100.00
66.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
97.71
6.83
0.00
0.00
50.00
20.00
100.00
100.00
100.00
0.00
100.00
24.64
42.58
97.71
97.71
100.00
97.71
97.71
97.71
99.44
97.73
97.71
97.82
97.71
100.00
0.00
97.82
98.76
97.73
97.73
28.11
42.59
42.59
42.59
42.59
42.59
42.59
42.59
42.59
42.59
42.59
97.71
100.00
100.00
42.59
42.59
97.71
99.24
97.71
FC
EM
NC
NC
PM
EM
FC
FC
FC
NC
FC
EM
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
NC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
Created
First-time consolidation (already owned)
First-time consolidation (already owned)
First-time consolidation (already owned)
ALT to CM-CIC Factor
Wound up
Deconsolidated
Deconsolidated
+ Method: FC = Full Consolidation, PM = Proportional Method, EM = Equity Method, NC = Not Consolidated, ALT =Asset, liability transfer
*Presentation by majority-owned Crédit Mutuel group
142 CRÉDIT MUTUEL
31.12.2012
%
31.12.2011
Method
%
Comments
Method
Control
Interest
+
Control
Interest
+
SCI Plantagenets
SNC Credit Mutuel Anjou Immobilier
Targo Finanzberatung GmbH
Targobank AG & Co. KGaA
Targobank Espagne
SCI La Tréflière
0.00
0.00
100.00
100.00
50.00
100.00
0.00
0.00
100.00
100.00
50.00
100.00
NC
NC
FC
FC
PM
FC
100.00
100.00
100.00
100.00
50.00
100.00
100.00
100.00
100.00
100.00
50.00
100.00
FC
FC
FC
FC
PM
FC
CM Arkéa *
Arkéa Banking Services
Arkéa Banque Entreprises et Institutionnels
Arkéa Crédit Bail
Arkéa SCD
Banque Privée Européenne (BPE)
Caisse de Bretagne de CMA
Crédit foncier et communal d'Alsace et de Lorraine Banque
Crédit foncier et communal d'Alsace et de Lorraine SCF
CM Arkéa Home Loan SFH
Crédit Mutuel Arkéa Public Sector SCF
Federal Equipements
Federal Service
Financo
Foncière Investissement
Fortunéo
GICM
Leasecom
Leasecom Car
Leasecom Financial Assets
Leasecom Group
Monext
Monext Holding
Procapital Securities Services
SCI Interfédérale
100.00
100.00
100.00
99.95
100.00
92.86
100.00
100.00
100.00
100.00
100.00
97.32
100.00
100.00
100.00
100.00
100.00
100.00
100.00
95.00
100.00
100.00
99.98
100.00
100.00
100.00
100.00
99.95
100.00
92.86
100.00
100.00
100.00
100.00
100.00
97.29
100.00
100.00
99.99
97.29
95.00
95.00
95.00
95.00
100.00
100.00
99.98
100.00
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
100.00
100.00
100.00
100.00
100.00
92.59
91.02
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
95.00
100.00
100.00
99.98
100.00
100.00
100.00
100.00
100.00
100.00
92.59
91.02
91.02
100.00
100.00
100.00
97.80
100.00
100.00
99.99
97.80
95.00
95.00
95.00
95.00
100.00
100.00
99.98
100.00
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
CMNE *
Bail Actea
Bail Immo Nord
Bâtiroc
Bcmne
BKCP SCRL
BKCP Securities
Citibank Belgique
CMNE Belgium
CMNE Home Loans FCT
CPSA
FCP Nord Europe Gestion
FCP Richebé Gestion
FCP Richebé Recovery
GIE BCMNE Gestion
GIE CMN Prestations
Immobilière du CMN
Mobilease
OBK
SCI CMN
SCI CMN 1
SCI CMN 2
SCI CMN 3
SCI CMN location
SCI CMN location 2
100.00
100.00
100.00
100.00
95.76
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
98.92
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
95.76
100.00
100.00
100.00
99.89
100.00
100.00
99.82
100.00
100.00
100.00
100.00
100.00
97.49
100.00
100.00
100.00
100.00
100.00
100.00
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
100.00
100.00
100.00
100.00
95.65
100.00
0.00
100.00
0.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
0.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
95.65
100.00
0.00
100.00
0.00
100.00
100.00
99.81
100.00
100.00
100.00
100.00
100.00
0.00
100.00
100.00
100.00
100.00
100.00
100.00
FC
FC
FC
FC
FC
FC
NC
FC
NC
FC
FC
FC
FC
FC
FC
FC
FC
NC
FC
FC
FC
FC
FC
FC
Comments
Method
A. Retail Banking
CM11 *
Adepi
Banca Popolare di Milano
Bancas
Banco Popular Español
Banque du Groupe Casino
Banque de Tunisie
Banque du Crédit Mutuel Ile-de-France (BCMI)
Banque Européenne du Crédit Mutuel
Banque Européenne du Crédit Mutuel - Francfort
Banque Européenne du Crédit Mutuel Monaco
Banque Européenne du Crédit Mutuel - St Martin
Banque Marocaine du Commerce Exterieur (BMCE)
Cartes et crédits à la consommation (ex C2C)
CIC Est
CIC Nord-Ouest
CIC Iberbanco
CIC Lyonnaise de Banque (LB)
CIC Ouest
CIC Sud Ouest
CM-CIC Asset Management
CM-CIC Bail
CM-CIC Epargne salariale
CM-CIC Factor
CM-CIC Gestion
CM-CIC Home Loan SFH
CM-CIC Immobilier
CM-CIC Laviolette Financement
CM-CIC Lease
CM-CIC Leasing Benelux
CM-CIC Leasing GmbH
Cofidis Argentine
Cofidis Belgique
Cofidis Espagne
Cofidis France
Cofidis Hongrie
Cofidis Italie
Cofidis Portugal
Cofidis République Tchèque
Cofidis Slovaquie
Creatis
FCT Cofititrisation
Gesteurop
GIE CMA
GIEMAT
Monabanq
Monabanq Belgique
Saint-Pierre SNC
SOFEMO - Société Fédérative Europ.de Monétique et de Financement
Sofim
Consolidated entities are presented according
to the sectors used for preparing segment information under
IFRS 8. Accordingly, for example, entities included
under Retail Banking do not necessarily have the legal status
of credit institutions
Deconsolidated
Deconsolidated
Acquired outside group
Creation
Acquired outside group
+ Method: FC = Full Consolidation, PM = Proportional Method, EM = Equity Method, NC = Not Consolidated, ALT =Asset, liability transfer
*Presentation by majority-owned Crédit Mutuel group
Annual Report 2012
143
FINANCIAL STATEMENTS
NOTES
Consolidated entities are presented according
to the sectors used for preparing segment information under
IFRS 8. Accordingly, for example, entities included
under Retail Banking do not necessarily have the legal status
of credit institutions
31.12.2012
%
31.12.2011
Method
%
Comments
Method
Control
Interest
+
Control
Interest
+
SCI CMN Richebé Inkerman
Services et Crédits aux Professions Independantes et PME
Transactimmo
100.00
0.00
100.00
100.00
0.00
100.00
FC
NC
FC
100.00
56.32
100.00
100.00
53.88
100.00
FC
FC
FC
CMO *
SCI Merlet Immobilier
Union Immobiliere Ocean SCI
100.00
100.00
100.00
100.00
FC
FC
100.00
100.00
100.00
100.00
FC
FC
CMMABN *
Acman
SAS Volney Bocage
Zephyr Home Loans FCT
100.00
100.00
100.00
100.00
100.00
100.00
FC
FC
FC
100.00
0.00
0.00
100.00
0.00
0.00
FC
NC
NC
CM11 *
Banque Fédérative du Crédit Mutuel - Francfort
Cigogne Management
CM-CIC Capital Finance
CM-CIC Capital Innovation
CM-CIC Conseil
CM-CIC Investissement
CM-CIC Securities
CM-CIC Securities London Branch
Diversified Debt Securities SICAV - SIF
Divhold
FCT CM-CIC Home loans
Lafayette CLO 1 Ltd
Sudinnova
100.00
100.00
100.00
100.00
100.00
99.77
100.00
100.00
100.00
100.00
100.00
100.00
66.35
100.00
98.66
97.76
97.54
97.76
97.54
97.77
97.77
97.77
97.77
100.00
97.77
64.72
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
100.00
100.00
100.00
100.00
100.00
99.77
100.00
100.00
100.00
100.00
100.00
0.00
66.35
100.00
98.75
97.71
97.48
97.71
97.48
97.71
97.71
98.34
98.34
100.00
0.00
64.68
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
NC
FC
CM Arkéa *
Arkéa Capital Investissement
Arkéa Capital Partenaire
CEOI
100.00
100.00
100.00
100.00
100.00
100.00
FC
FC
FC
100.00
100.00
100.00
100.00
100.00
100.00
FC
FC
FC
CMNE *
Nord Europe Partenariat
SDR de Normandie
Siparex Proximité Innovation
99.65
99.80
46.46
99.63
99.80
46.03
FC
FC
EM
99.65
99.79
66.00
99.63
99.79
65.59
FC
FC
FC
CMO *
Océan Participations
100.00
100.00
FC
100.00
100.00
FC
CMMABN *
Volney Développement
100.00
100.00
FC
100.00
100.00
FC
Wound up
Created
Created
B. Corporate and Investment Banking
Created
C. Asset Management and Private Banking
CM11 *
Agefor SA Genève
Alternative gestion SA Genève
Banque de Luxembourg
Banque Pasche (Liechtenstein) AG
Banque Pasche Monaco SAM
Banque Transatlantique Belgium
Banque Transatlantique Londres
Banque Transatlantique Luxembourg
Banque Transatlantique Singapore Private Ltd
Calypso Management Company
Banque Transatlantique
70.00
45.00
100.00
52.50
100.00
100.00
100.00
100.00
100.00
70.00
100.00
68.44
60.62
97.77
51.33
97.77
96.86
97.77
97.77
97.77
68.44
97.77
FC
EM
FC
FC
FC
FC
FC
FC
FC
FC
FC
70.00
45.00
100.00
52.50
100.00
100.00
100.00
100.00
100.00
70.00
100.00
68.40
60.58
98.34
51.30
97.71
96.80
97.71
98.63
97.71
68.40
97.71
FC
EM
FC
FC
FC
FC
FC
FC
FC
FC
FC
+ Method: FC = Full Consolidation, PM = Proportional Method, EM = Equity Method, NC = Not Consolidated, ALT =Asset, liability transfer
*Presentation by majority-owned Crédit Mutuel group
144 CRÉDIT MUTUEL
31.12.2012
31.12.2011
Comments
Consolidated entities are presented according
to the sectors used for preparing segment information under
IFRS 8. Accordingly, for example, entities included
under Retail Banking do not necessarily have the legal status
of credit institutions
Control
Interest
+
Control
Interest
+
Banque Pasche
CIC Suisse
Dubly-Douilhet
LRM Advisory SA
Multi Financière de l'Anjou SA
Pasche Bank & Trust Ltd Nassau
Pasche Finance SA Fribourg
Pasche Fund Management Ltd
Pasche International Holding Ltd
Pasche SA Montevideo
Serficom Brasil Gestao de Recursos Ltda
Serficom Family Office Brasil Gestao de Recursos Ltda
Serficom Family Office Inc
Serficom Family Office SA
Serficom Investment Consulting (Shanghaï)
Serficom Maroc SARL
Transatlantique Gestion
Valeroso Management Ltd
100.00
100.00
62.66
70.00
0.00
100.00
100.00
0.00
0.00
0.00
50.42
51.98
100.00
100.00
0.00
0.00
100.00
100.00
97.77
97.77
61.26
68.44
0.00
97.77
97.77
0.00
0.00
0.00
49.29
50.82
97.77
97.77
0.00
0.00
97.77
97.77
FC
FC
FC
FC
NC
FC
FC
NC
NC
NC
FC
FC
FC
FC
NC
NC
FC
FC
100.00
100.00
62.66
70.00
100.00
100.00
100.00
100.00
100.00
100.00
50.42
51.98
100.00
100.00
100.00
100.00
100.00
100.00
97.71
97.71
61.23
68.40
100.00
97.71
97.71
97.71
97.71
97.71
49.27
50.79
97.71
97.71
97.71
97.71
97.71
97.71
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
CM Arkéa *
Arkéa Capital Gestion
Federal Finance
Federal Finance Gestion
Schelcher Prince Gestion
100.00
100.00
100.00
84.99
100.00
100.00
100.00
84.99
FC
FC
FC
FC
100.00
100.00
100.00
50.04
100.00
100.00
100.00
50.04
FC
FC
FC
FC
CMNE *
Cholet Dupont Partenaires
CM Habitat Gestion
Convictions Asset Management
Franklin Gérance
GIE La Française AM
Holding Cholet Dupont S.A.
Groupe la Française
La Française AM Finance Services
La Française AM Gestion Privée
La Française AM IBERIA
La Française AM International
La Française AM International Claims Collection
La Française AM Private Bank
La Française des Placements
La Française Investment Solutions (LFIS)
La Française Real Estate Managers
LFP-Sarasin AM
Pythagore Investissement BP
Société Holding Partenaires
UFG Courtage
UFG Property Managers
50.52
99.98
30.00
100.00
100.00
33.40
99.06
100.00
99.98
66.00
100.00
100.00
100.00
100.00
65.00
100.00
100.00
0.00
50.52
100.00
100.00
50.52
99.78
29.72
99.19
99.06
33.09
99.06
99.06
99.04
65.39
99.07
99.06
99.44
99.06
64.39
99.19
99.06
0.00
50.52
99.06
99.19
PM
FC
EM
FC
FC
EM
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
NC
PM
FC
FC
50.68
99.98
30.00
100.00
100.00
33.40
99.38
100.00
99.98
0.00
100.00
100.00
100.00
100.00
0.00
100.00
100.00
30.05
50.68
100.00
100.00
50.68
99.85
29.81
99.47
99.38
33.19
99.38
99.38
99.36
0.00
99.43
99.38
99.63
99.38
0.00
99.47
99.38
29.86
50.68
99.38
99.47
PM
FC
EM
FC
FC
EM
FC
FC
FC
NC
FC
FC
FC
FC
NC
FC
FC
EM
PM
FC
FC
100.00
97.77
100.00
100.00
100.00
100.00
97.77
97.77
97.77
97.77
FC
FC
FC
FC
FC
100.00
97.71
100.00
100.00
100.00
100.00
97.71
97.71
97.71
97.71
FC
FC
FC
FC
FC
%
Method
%
Method
Deconsolidated
Wound up
ALT to Pasche Finance SA Fribourg
Wound up
Deconsolidated
Deconsolidated
Created
Created
Sold outside group
D. Multi-sectors
CM11 *
Banque Fédérative du Crédit Mutuel
Crédit Industriel et Commercial (CIC) - IDF
Crédit Industriel et Commercial (CIC) - Londres
Crédit Industriel et Commercial (CIC) - New York
Crédit Industriel et Commercial (CIC) - Singapour
+ Method: FC = Full Consolidation, PM = Proportional Method, EM = Equity Method, NC = Not Consolidated, ALT =Asset, liability transfer
*Presentation by majority-owned Crédit Mutuel group
Annual Report 2012
145
FINANCIAL STATEMENTS
NOTES
Consolidated entities are presented according
to the sectors used for preparing segment information under
IFRS 8. Accordingly, for example, entities included
under Retail Banking do not necessarily have the legal status
of credit institutions
31.12.2012
%
Control
31.12.2011
Method
Interest
+
%
Control
Comments
Method
Interest
+
E. Insurance companies
CM11 *
ACM GIE
ACM IARD
ACM RE
ACM Services
ACM Vie. Société d'Assurance Mutuelle
ACM Vie
Agrupació Bankpyme pensiones
Agrupació Serveis Administratius
Agrupació AMCI de Seguros y Reaseguros
AMDIF
AMSYR
Assistencia Advancada Barcelona
Astree
Atlancourtage
Atlancourtage Anjou
Groupe des Assurances du Crédit Mutuel (GACM)
ICM Life
Immobilière ACM
Massena Property
Massimob
MTRL
Partners
Procourtage
RMA Watanya
Royal Automobile Club de Catalogne
SCI ACM (ex SCI ADS)
Serenis Assurances
Serenis Vie
Fonciere Massena
Voy Mediación
100.00
100.00
100.00
100.00
100.00
100.00
80.04
80.04
80.04
80.04
80.04
80.04
30.00
0.00
0.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
22.02
49.00
100.00
99.59
100.00
100.00
90.00
99.54
99.56
99.54
99.54
100.00
99.54
69.51
69.51
69.51
69.51
69.51
69.51
29.86
0.00
0.00
99.54
99.54
99.54
99.54
99.56
100.00
99.54
99.54
21.92
48.78
99.62
99.13
99.54
99.54
89.60
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
EM
NC
NC
FC
FC
FC
FC
FC
FC
FC
FC
EM
EM
FC
FC
FC
FC
FC
100.00
100.00
0.00
100.00
100.00
100.00
0.00
0.00
0.00
0.00
0.00
0.00
30.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
22.02
49.00
100.00
99.59
100.00
99.68
90.00
99.53
99.55
0.00
99.53
100.00
99.53
0.00
0.00
0.00
0.00
0.00
0.00
29.86
99.53
100.00
99.53
99.53
99.53
99.53
99.55
100.00
99.53
99.53
21.92
48.77
99.12
99.12
99.53
99.32
89.59
FC
FC
NC
FC
FC
FC
NC
NC
NC
NC
NC
NC
EM
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
EM
EM
FC
FC
FC
FC
FC
CM Arkéa *
Infolis
Novelia
Suravenir
Suravenir Assurances
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
FC
FC
FC
FC
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
FC
FC
FC
FC
CMNE *
ACM Nord IARD
ACMN Vie
Courtage CMN
CP-BK reinsurance (lux)
La Pérennité Entreprises
Nord Europe Assurances
Nord Europe Life Luxembourg
Nord Europe Retraite
Vie Services
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
77.50
99.78
100.00
100.00
100.00
100.00
100.00
100.00
100.00
77.50
FC
FC
FC
FC
FC
FC
FC
FC
FC
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
77.50
99.77
100.00
100.00
100.00
100.00
100.00
100.00
100.00
77.50
FC
FC
FC
FC
FC
FC
FC
FC
FC
0.00
100.00
100.00
99.92
100.00
100.00
0.00
83.50
0.00
100.00
89.12
97.59
89.12
89.15
0.00
83.50
NC
FC
FC
FC
FC
FC
NC
FC
68.92
100.00
100.00
99.72
100.00
100.00
80.00
83.50
48.97
100.00
88.81
97.33
88.81
88.84
71.05
83.50
FC
FC
FC
FC
FC
FC
FC
FC
Acquired outside group
Acquired outside group
Acquired outside group
Acquired outside group
Acquired outside group
Acquired outside group
ALT to Procourtage
Deconsolidated
Sold outside group
ALT to Alsace Média Participation
+ Method: FC = Full Consolidation, PM = Proportional Method, EM = Equity Method, NC = Not Consolidated, ALT =Asset, liability transfer
*Presentation by majority-owned Crédit Mutuel group
146 CRÉDIT MUTUEL
31.12.2012
%
31.12.2011
Method
%
Comments
Method
Control
Interest
+
Control
Interest
+
CIC Migrations
CIC Participations
Cicor
Cicoval
Cime & mag
100.00
100.00
100.00
100.00
0.00
97.77
97.77
97.77
97.77
0.00
FC
FC
FC
FC
NC
100.00
100.00
100.00
100.00
100.00
97.71
97.71
97.71
97.71
98.71
FC
FC
FC
FC
FC
CM Akquisitions
CM-CIC Services
CMCP - Crédit Mutuel Cartes de Paiement
Cofidis Participations
Cofisun
Documents AP
Distripub
Efsa
Euro-Information Développement
EPM
EI Telecom (ex NRJ Mobile)
Est Bourgogne Médias
Est Bourgogne Rhône Alpes - EBRA
Est imprimerie
Euro-Information
Euro Protection Services
Euro Protection Surveillance
Europe Régie
100.00
100.00
100.00
51.00
100.00
100.00
100.00
100.00
100.00
100.00
95.00
100.00
100.00
100.00
100.00
0.00
99.96
0.00
100.00
100.00
99.99
42.59
42.59
100.00
98.73
97.77
99.72
100.00
94.73
100.00
100.00
100.00
99.72
0.00
99.75
0.00
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
NC
FC
NC
100.00
100.00
100.00
51.00
100.00
100.00
100.00
100.00
100.00
100.00
95.00
100.00
100.00
96.76
100.00
99.97
99.97
66.00
100.00
100.00
99.99
42.59
42.59
100.00
98.71
97.71
99.71
100.00
94.73
100.00
100.00
96.76
99.71
99.75
99.75
65.15
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
France Est
France Régie
GEIE Synergie
Gestunion 2
Gestunion 3
Gestunion 4
Groupe Progrès
L'Est Républicain
Groupe Républicain Lorrain Imprimeries - GRLI
Immocity
Impex Finance
Imprimerie Michel
Interprint
Jean Bozzi Communication
Journal de la Haute Marne
La Liberté de l'Est
Le Républicain Lorrain - GRLC
L'Alsace
L'Alsace Magazines Editions
100.00
100.00
99.99
100.00
100.00
100.00
100.00
91.74
100.00
100.00
100.00
100.00
100.00
100.00
50.00
97.13
100.00
99.98
0.00
98.06
89.15
42.58
97.77
97.77
97.77
100.00
91.37
100.00
100.00
97.77
100.00
100.00
100.00
45.69
88.75
100.00
98.71
0.00
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
EM
FC
FC
FC
NC
100.00
100.00
0.00
100.00
100.00
100.00
100.00
91.51
100.00
100.00
100.00
100.00
100.00
100.00
50.00
96.11
100.00
99.98
100.00
98.00
88.84
0.00
97.71
97.71
97.71
100.00
91.14
100.00
100.00
97.71
100.00
100.00
100.00
45.57
44.76
100.00
98.70
98.71
FC
FC
NC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
EM
FC
FC
FC
FC
La Tribune
Le Dauphiné Libéré
Le Républicain Lorrain
Dernières Nouvelles d'Alsace
Dernières Nouvelles de Colmar
Les Editions de l'échiquier
Lumedia
Marsovalor
Mediaportage
Pargestion 2
Pargestion 4
Placinvest
Presse Diffusion
100.00
99.97
100.00
98.74
99.97
100.00
50.00
100.00
100.00
100.00
100.00
99.96
100.00
99.97
99.97
100.00
89.15
89.12
98.73
50.00
97.77
98.73
97.77
97.77
97.72
100.00
FC
FC
FC
FC
FC
FC
PM
FC
FC
FC
FC
FC
FC
100.00
99.97
100.00
98.71
99.97
100.00
50.00
100.00
100.00
100.00
100.00
99.96
100.00
99.97
99.97
100.00
88.84
88.81
98.71
50.00
97.71
98.71
97.71
97.71
97.66
100.00
FC
FC
FC
FC
FC
FC
PM
FC
FC
FC
FC
FC
FC
Acquired outside group
F. Other
CM11 *
A. Télé
Actimut
Affiches d'Alsace Lorraine
Agence Générale d'informations régionales
Alsace Média Participation
Alsacienne de Portage des DNA
Alsatic
Carmen Holding Investissement
Consolidated entities are presented according
to the sectors used for preparing segment information under
IFRS 8. Accordingly, for example, entities included
under Retail Banking do not necessarily have the legal status
of credit institutions
ALT to Société Française d'Edition
de Journaux et d'Imprimés Commerciaux
"L’'Alsace" (SFEJIC)
ALT to Euro Protection Surveillance
ALT to Société Française d'Edition de
Journaux et d'Imprimés Commerciaux
"L’Alsace" (SFEJIC)
Created
ALT to Société Française d'Edition de
Journaux et d'Imprimés Commerciaux
"L’Alsace" (SFEJIC)
+ Method: FC = Full Consolidation, PM = Proportional Method, EM = Equity Method, NC = Not Consolidated, ALT =Asset, liability transfer
*Presentation by majority-owned Crédit Mutuel group
Annual Report 2012
147
FINANCIAL STATEMENTS
NOTES
Consolidated entities are presented according
to the sectors used for preparing segment information under
IFRS 8. Accordingly, for example, entities included
under Retail Banking do not necessarily have the legal status
of credit institutions
31.12.2012
%
31.12.2011
Method
%
Comments
Method
Control
Interest
+
Control
Interest
+
Presse Diffusion
Promopresse
Publicité Moderne
Publiprint Dauphiné
Publiprint Province n°1
Roto Offset Imprimerie
Société d'édition des hebdomadaires et périodiques locaux
Républicain Lorrain Communication
Républicain Lorrain - TV news
Républicain Lorrain Voyages
Société Civile de Gestion des Parts dans l'Alsace - SCGPA
SCI Alsace
SCI Ecriture
100.00
100.00
0.00
100.00
100.00
100.00
0.00
100.00
100.00
0.00
100.00
90.00
0.00
100.00
99.97
0.00
99.97
100.00
98.73
0.00
100.00
100.00
0.00
100.00
88.85
0.00
FC
FC
NC
FC
FC
FC
NC
FC
FC
NC
FC
FC
NC
100.00
100.00
99.99
100.00
99.97
100.00
99.71
100.00
100.00
100.00
100.00
90.00
100.00
100.00
99.97
91.12
99.97
99.97
98.71
99.71
100.00
100.00
100.00
100.00
88.84
98.71
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
SCI Gutenberg
SCI Le Progrès Confluence
SCI Roseau d'or
100.00
100.00
0.00
100.00
100.00
0.00
FC
FC
NC
100.00
100.00
100.00
100.00
100.00
98.71
FC
FC
FC
SDV Plurimédia
Société Française d'Edition de Journaux
et d'Imprimés Commerciaux "l'Alsace"- SFEJIC
Est Info TV
Société de Presse Investissement
Sofiholding 2
Sofiholding 3
Sofiholding 4
Sofiliest
Sofinaction
Société Édition Hebdomadaires du Louhannais & du Jura
Targo Akademie GmbH
Targo Deutschland GmbH
Targo Dienstleistungs GmbH
Targo IT Consulting GmbH
Targo IT Consulting Singapore
Targo Management AG
Targo Realty Services GmbH
Top Est 88
Ufigestion 2
Ugépar Service
Valimar 2
Valimar 4
Ventadour Investissement
VTP 1
VTP 5
20.45
18.24
EM
20.45
18.17
EM
98.72
0.00
100.00
100.00
100.00
100.00
0.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
0.00
100.00
100.00
100.00
100.00
100.00
99.98
100.00
98.72
0.00
90.29
97.77
97.77
97.77
0.00
97.77
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
0.00
97.77
97.77
97.77
97.77
100.00
97.75
97.77
FC
NC
FC
FC
FC
FC
NC
FC
FC
FC
FC
FC
FC
FC
FC
FC
NC
FC
FC
FC
FC
FC
FC
FC
98.73
60.00
100.00
100.00
100.00
100.00
51.00
100.00
99.84
100.00
100.00
100.00
100.00
100.00
100.00
100.00
99.98
100.00
100.00
100.00
100.00
100.00
99.98
100.00
98.73
53.29
90.00
97.71
97.71
97.71
46.48
97.71
99.84
100.00
100.00
100.00
100.00
100.00
100.00
100.00
46.47
97.71
97.71
97.71
97.71
100.00
97.70
97.71
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
FC
CMNE *
Actéa Environnement
CMN Environnement (SNC)
CMN Tel
Financière Nord Europe
Fininmad
Immo W16
LFP Nexity services immobiliers
Nord Europe Participations et Investissements (NEPI)
Nouvelles Expertises et Talents AM
SA Sofimpar
SCI Centre Gare
Sicorfe Maintenance
Sofimmo3
100.00
100.00
100.00
100.00
100.00
100.00
24.64
100.00
100.00
100.00
100.00
90.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
24.44
100.00
99.06
100.00
100.00
89.84
100.00
FC
FC
FC
FC
FC
FC
EM
FC
FC
FC
FC
FC
FC
100.00
100.00
100.00
100.00
100.00
100.00
24.64
100.00
0.00
100.00
100.00
90.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
24.51
100.00
0.00
100.00
100.00
89.84
100.00
FC
FC
FC
FC
FC
FC
EM
FC
NC
FC
FC
FC
FC
CMO *
Sodelem Services
100.00
100.00
FC
100.00
100.00
FC
NOTE 2: CONSOLIDATION
POLICIES AND METHODS
2.1 Consolidation methods
ALT to Groupe Est Républicain
ALT to Est Bourgogne Rhone Alpes
ALT to Groupe Républicain Lorrain (GRLC)
ALT to Société Française d'Edition de
Journaux et d'Imprimés Commerciaux
"L’Alsace" (SFEJIC)
ALT to Société Française d'Edition de
Journaux et d'Imprimés Commerciaux
"L’Alsace" (SFEJIC)
Deconsolidated
ALT to Groupe Est Républicain
ALT to La Liberté de l'Est
The following consolidation methods
have been used:
• Full consolidation
This method consists of substituting the
various assets and liabilities of the
subsidiary concerned for the value of the
securities held and of recognising the
share of minority interests in
shareholders’ equity and net profit. It is
applied to all exclusively-controlled
entities, including those with a different
accounts structure, regardless of whether
or not the activity concerned forms part
of the consolidating entity’s activities.
• Proportional consolidation
This method consists of including in
the accounts of the consolidating entity
the proportion of the subsidiary’s
assets and liabilities represented by the
interest held in the consolidated entity,
as restated where required; minority
interests are therefore not recognised.
It is applied to all jointly-controlled
entities, including those with a different
accounts structure, regardless of
whether or not the activity concerned
forms part of the consolidating entity’s
activities.
• Equity method of consolidation
The equity method of consolidation
consists of substituting the group’s
share of the shareholders’ equity and
net profit of the entity concerned for the
value of the securities held. It is applied
to all entities over which significant
influence is exercised.
Created
Minority interests correspond to
participating interests not resulting in
control being exercised as defined by
IAS 27 (revised) and include
instruments constituting present
ownership interests and conferring
rights to a share of the net assets in the
event of liquidation as well as other
capital instruments issued by the
subsidiary when held outside the group.
2.2 Closing date
All the companies included in the group
consolidation scope close their accounts
on 31 December of each year.
2.3 Elimination of intra-group
transactions
Intra-group accounts and any
effects resulting from intra-group
transfers that would have a material
impact
on
the
consolidated
financial statements are eliminated.
Intra-group receivables, liabilities,
reciprocal commitments, charges
and income are eliminated for
entities consolidated using the full
or proportional methods.
2.4 Translation of accounts
denominated in a foreign currency
Concerning foreign entities whose
accounts are denominated in a foreign
currency, the balance sheet is translated
using the official exchange rate on the
closing date. The translation difference
arising on the capital, reserves and
retained earnings is recognised in
shareholders’ equity, under “Translation
reserves”. The income statement is
translated using the average exchange
rate for the year. The resulting
translation differences are recognised
directly in “Translation reserves”. Such
differences are transferred to profit and
loss in the event of the disposal or
liquidation of all or part of the holding
in the foreign entity.
2.5 Goodwill
• Valuation differences
On the date that control of a new
entity is acquired, the assets, liabilities
and contingent operating liabilities
are measured at their fair value.
Valuation differences between the
carrying amount and the fair value are
recognised.
• Goodwill on acquisition
In compliance with IFRS 3 (revised), on
the date that control of a new entity is
acquired, those identifiable assets,
liabilities and contingent liabilities of
the acquiree meeting criteria for
recognition under IFRS are measured at
fair value on the date of acquisition,
except for non-current assets classified
as assets held for sale, which are
recognised at the lowest of fair value
less costs to sell and carrying amount.
IFRS 3 (revised) permits goodwill on
acquisition to be recognised on a full
basis or on a proportional basis, the
choice being available for each business
combination. In the first case, noncontrolling interests are measured at
fair value (so-called total goodwill
method), while under the second they
are measured at their proportionate
interest in the value of the assets and
liabilities of the acquiree (partial
goodwill method). If goodwill is
positive, it is recorded as an asset, and if
it is negative, it is recognised
immediately in profit or loss, under
“Changes in goodwill”.
If there is an increase (decrease) in the
group’s percentage holding in a
controlled entity, the difference
between the acquisition cost (sale
price) of the securities and the share of
consolidated shareholders’ equity
represented by such securities on the
date of acquisition (date of sale) is
recognised in shareholders’ equity.
The group regularly (at least once each
year) tests goodwill for impairment.
These tests are intended to ensure that
goodwill has not experienced any
impairment.
+ Method: FC = Full Consolidation, PM = Proportional Method, EM = Equity Method, NC = Not Consolidated, ALT =Asset, liability transfer
*Presentation by majority-owned Crédit Mutuel group
148 CRÉDIT MUTUEL
Annual Report 2012
149
FINANCIAL STATEMENTS
NOTES
If the recoverable value of the cashgenerating unit (CGU) to which the
goodwill is allocated is less than its
carrying amount, the difference is
recognised as an impairment. This
impairment, recognised in profit and
loss, is irreversible. Practically
speaking, the CGUs correspond to the
various business lines as used by
management to oversee the group’s
activity.
NOTE 3: ACCOUNTING
POLICIES AND METHODS
International Financial Reporting
Standards (IFRS) offer a choice of
accounting methods in certain areas.
The main options adopted by the group
are as follows:
– The group has measured at fair value
certain liabilities issued by the
enterprise that are not included in a
trading portfolio.
– The eligibility for fair-value hedging
relationships of macro-hedging
transactions entered into in the
context
of
the
asset-liability
management of fixed-rate positions
(notably including customer demand
deposits)
authorised
by
EU
Regulation 2086/2004 has been
applied by the group.
– The group availed itself of the
amendments to IAS 39 issued in
October 2008 permitting the
reclassification of some financial
instruments from the fair-valuethrough-profit-or-loss category to
loans and receivables or assets held to
maturity. Note that reclassifications
to available-for-sale assets are also
permitted (see Note 3.4).
3.1 Loans and receivables
Loans and receivables are fixed or
determinable-income financial assets
not listed on an active market, which
are not intended for sale when acquired
or granted. They include loans granted
150 CRÉDIT MUTUEL
directly or the bank’s share of
syndicated loans, loans acquired and
unlisted debt securities. When first
recorded on the balance sheet, they are
recognised at their fair value, which is
generally the net amount disbursed.
The rates applied are presumed to be
market rates in that the rate scales are
constantly adjusted as a function, in
particular, of the rates applied by the
large
majority
of
competitor
institutions. At subsequent period ends,
the outstandings are measured at their
amortised cost using the effective
interest rate method (other than those
recognised using the fair value by
option method).
All commissions received or paid
relating directly to the setting in place
of the loan and in the nature of interest
are spread over the life of the loan in
accordance with the effective interest
rate method and are recorded in the
income statement as an interest item.
The fair value of loans and receivables is
disclosed in the notes to the financial
statements on each closing date: it
comprises the present value of
projected future cash flows discounted
using a zero-coupon interest rate curve,
which includes the signature cost
inherent to the debtor.
3.2 Provisions for impairment of
loans and receivables, loan
commitments and guarantee
commitments
• Individual provisions for impairment
of loans and receivables
Impairment is recognised once there
is objective evidence of the existence
of an event or events occurring
subsequent to the granting of the
loan – or group of loans – likely to
generate a loss. An analysis is
performed on a contract-by-contract
basis at each period end. The amount
of impairment is equal to the
difference between the carrying
amount and the present value of the
projected
future
cash
flows
discounted at the original effective
interest rate on the loan, taking into
account any guarantees. For variablerate loans, the last known contractual
rate is used.
The existence of unpaid past due
amounts for more than three months
(or six months for mortgages and
local governments) or of current
accounts that have been noncompliant for more than three
months represents objective evidence
of a loss event. Similarly, an objective
indication of loss is identified when it
is probable that the debtor will not be
able to repay all the amounts due or
when a default event has taken place
or in the event of a court-ordered
liquidation.
Impairment losses and provisions are
recognised as a component of the
cost of risk. When reversed,
impairment losses and provisions are
treated as a reduction in the cost of
risk with the exception of the portion
relating to the impact of the passage
of time associated with the
discounting
mechanism.
The
provision is deducted from loans and
receivables when it related to
impaired assets and is recognised as a
liability under provisions for risks
when it relates to loan and guarantee
commitments (see Note 3.9).
Irrecoverable receivables are written
off and the corresponding provisions
are written back.
• General provisions for impairment of loans and receivables
All loans to customers not written down
for impairment on an individual basis
are grouped together into homogenous
pools of exposures. Exposures at risk are
subject to an impairment provision
based on the actual loss rate and the
probability of default to maturity
observed internally and externally
applied to the loan outstandings. This
provision is recognised as a deduction
from the corresponding assets in the
balance sheet and changes during the
period are recognised in the cost of risk
in profit or loss.
3.3 Leases
A lease is an agreement under which
the lessor grants to the lessee, for a
predetermined period, the right to use
an asset in exchange for a payment or
series of payments.
A finance lease is a lease under which
virtually all of the risks and benefits
inherent in the ownership of an asset
are transferred to the lessee.
Ownership of the asset may or may
not eventually be transferred.
An operating lease is any lease that is
not a finance lease.
• Finance leases – lessor
In accordance with IAS 17, finance
lease transactions with non-group
companies are reported on the
consolidated balance sheet at their
financial accounting amount.
Analysis of the economic substance of
transactions results, in the accounts of
the lessor, in:
– recognition of a financial receivable
due from the customer, amortised by
the lease payments received;
– breakdown of the lease payments
between
interest
and
the
amortisation of the principal, known
as financial amortisation;
– recognition of a net unrealised
reserve, equal to the difference
between:
• the net financial outstanding: the
amount due by the lessee,
comprising the remaining capital
due and accrued interest at the
closing date;
• the net carrying amount of the
leased non-current assets;
• the deferred tax provision.
• Finance leases – lessee
In accordance with IAS 17, the
non-current assets concerned are
recorded on the balance sheet as
assets and the borrowing from credit
institutions is recorded as a liability.
Lease payments are broken down
between interest expense and
repayment of principal.
3.4 Securities
• Determination of fair value of
financial instruments
Fair value is the amount for which an
asset could be exchanged, or a liability
settled, between knowledgeable,
willing parties in an arm's length
transaction.
On initial recognition of a financial
instrument, fair value is generally the
transaction price.
When measured subsequently, fair
value must be determined. The
measurement method applied varies
depending on whether the financial
instrument is traded in a market
considered as active or not.
Financial instruments traded
in an active market
When financial instruments are traded
in an active market, fair value is
determined by reference to their quoted
price as this represents the best possible
estimate of fair value. A financial
instrument is regarded as quoted in an
active market if quoted prices are readily
and regularly available from an
exchange, dealer, broker or pricing
service, and those prices represent
actual market transactions regularly
occurring on an arm’s length basis.
Financial instruments not traded
in an active market
When the market is illiquid, market
prices may be used as an element in
determining fair value, but cannot be
the overriding element.
When there is no observable data or
when adjustments to market prices
require reliance to be placed on nonobservable data, the entity may use
internal assumptions regarding future
cash flows and discount rates,
integrating adjustments for market
risks in the same way as the market
would (i.e. credit risk and liquidity
risk). Observable market data is used
when this data reflects the reality of a
transaction in an arm’s length
exchange and there is no need for
material adjustments to the valuation
obtained in this way. Otherwise, the
group uses non-observable data,
applying a mark-to-model approach.
In all instances, the adjustments made
by the group are reasonable and
appropriate, with reliance placed on
judgement.
Fair value hierarchy
A three-level hierarchy is used for fair
value measurement:
– Level 1: quoted prices in active
markets for identical assets or
liabilities;
– Level 2: inputs other than quoted prices
included within level 1 that are
observable for the asset or liability in
question, either directly (i.e. as prices)
or indirectly (i.e. derived from prices);
and
– Level 3: inputs for the asset or liability
that are not based on observable
market data (unobservable inputs).
Given the diverse nature of the
instruments valued as Level 3 and the
reasons for their inclusion in this
category, the calculation of fair value
sensitivity to changes in the valuation
Annual Report 2012
151
FINANCIAL STATEMENTS
NOTES
parameters
does
not
meaningful information.
provide
This category includes notably
non-consolidated
participating
interests, whether held via venture
capital entities or not…
• Classification of securities
Securities may be classified in one of
the following categories:
– financial assets at fair value through
profit or loss;
– available-for-sale financial assets;
– held-to-maturity financial assets; or
– loans and receivables.
Classification in one or other of these
categories reflects the group’s
management intention and determines
how a particular financial asset is
recognised and measured in the
financial statements.
Financial assets and financial liabilities at fair value through profit
or loss
• Classification criteria and transfer rules
Securities are classified in this category
when acquired for the purpose of
selling them in the near term or
because, upon initial recognition, they
were designated as at fair value
through profit or loss.
a) Instruments held for trading
– Securities are classified as held for
trading if they were acquired
principally for the purpose of selling
them in the near term or if they are
part of a globally managed portfolio
for which there is evidence of a recent
actual pattern of short-term profittaking.
– Market conditions may prompt the
group to review the investment
strategy and management intention
for these securities. When it would be
untimely to sell securities purchased
152 CRÉDIT MUTUEL
initially for the purpose of selling
them in the near term, these
securities may be reclassified in
accordance with the provisions of the
amendments to IAS 39 issued in
October 2008.
– Transfers to financial assets held for
trading or to financial assets held to
maturity are permitted in exceptional
circumstances. Transfers to loans and
receivables are permitted when the
group has the positive intention and
ability to hold these securities over
the foreseeable future or until their
maturity, and when assets transferred
meet criteria for recognition as loans
and receivables, in particular the
requirement that they not be quoted
in an active market. These portfolio
transfers are intended to better
reflect the current management
intention for these instruments and
to reflect more fairly their impact on
the group’s results.
b) Instruments designated at fair value
through profit or loss
Financial instruments may be
designated as at fair value through
profit or loss upon initial recognition.
Once designated as such, financial
instruments cannot be reclassified. This
classification is permitted in the
following circumstances:
– financial instruments containing one
or several separable embedded
derivatives;
– instruments for which the accounting
treatment would be inconsistent with
that applied to another related
instrument, were the fair value option
not applied; and
– instruments belonging to a pool of
financial assets measured and
accounted for at fair value.
The group has used this option in
particular for unit-linked insurance
policies, for consistency with the
treatment applied to liabilities, and for
private equity securities and certain
liabilities
issued
that
embedded derivatives.
contain
• Basis for the measurement and
recognition of income and charges
Securities classified as assets and
liabilities at fair value through profit or
loss are recognised on the balance
sheet at fair value when they are first
recorded and at all subsequent balance
sheet dates until such time as they are
disposed of.
Changes in fair value and income
received or accrued on fixed-income
securities classified in this category are
recorded in profit or loss under “Net
gains (losses) on financial instruments
at fair value through profit or loss”.
Purchases and sales of securities
measured at fair value through profit or
loss are recognised on the settlement
date. Changes in fair value between the
transaction and settlement dates are
recognised in profit or loss.
If there is a transfer to one of the three
other categories, the asset’s fair value
on the transfer date is treated
subsequently as representing cost or
amortised cost. No gain or loss
recognised prior to transfer may be
reversed.
Financial assets and financial
liabilities available for sale
• Classification criteria and transfer rules
Available-for-sale financial assets
comprise financial assets not classified
as loans and receivables, as held-tomaturity financial assets, nor as at fair
value through profit or loss.
Fixed income securities may be
reclassified as:
– held-to-maturity financial assets if there
is a change in management intention,
providing these assets meet the
classification criteria for this category;
– loans and receivables if there is a
change in management intention and
a positive intention and ability to hold
these securities over the foreseeable
future or until their maturity,
providing these assets meet the
classification criteria for this category.
• Basis for measurement and recognition
of income and charges
These assets are recognised on the
balance sheet at fair market value when
they are acquired and at subsequent
balance sheet dates until such time as
they are disposed of. Changes in fair
value are recorded in shareholders’
equity under a specific heading entitled
“Unrealised or deferred gains or losses”,
excluding accrued income. Unrealised
gains or losses recognised in
shareholders’ equity are recognised in
profit or loss only when the assets are
disposed of or when evidence of
permanent impairment is observed. On
disposal, the unrealised gains or losses
previously recognised in shareholders’
equity are transferred to profit or loss
under “Net gains (losses) on availablefor-sale financial assets”, together with
the gain or loss on disposal. Purchases
and sales of securities are recognised
on the settlement date.
If securities with a fixed maturity are
transferred out to held-to-maturity
financial assets or to loans and
receivables, and in the absence of
impairment losses, unrealised gains or
losses previously recognised directly to
equity are reversed over the residual
life of the asset. If securities with no
fixed maturity are transferred out to
loans and receivables, unrealised gains
or losses previously recognised directly
to equity are maintained in equity until
the sale of the securities.
Income accrued or received on fixedincome securities is recognised in profit
or loss using the effective interest
method under “Interest and similar
income”. Dividends received on
variable-yield securities are recorded in
profit or loss under “Net gains (losses)
on available-for-sale financial assets”.
• Impairment and credit risk
a) Lasting diminution in the value of
shares and other equity instruments
Impairment losses are recognised in
respect of variable income financial
assets classified as available for sale in
the event of a prolonged or material
decline in fair value relative to cost.
In the case of variable income
securities, Crédit Mutuel considers that
a loss in the value of an instrument
relative to its acquisition cost of 50% or
a loss in value over a period of 36
consecutive months triggers the
recognition of an impairment loss.
Impairment testing is carried out on a
line by line basis. Judgement is also
exercised for securities not meeting the
aforementioned
criteria
when
management estimates that the
recovery of the amount invested
cannot be expected reasonably in the
near future. The probable loss is
recognised in profit and loss under "Net
gains (losses) on available-for-sale
financial assets".
Any subsequent impairment is also
recognised in profit and loss. Losses for
permanent impairment of shares and
other equity instruments recorded in
profit and loss may not be reversed as
long as the instrument is carried on
the balance sheet. Any subsequent
appreciation is recognised to equity
under “Unrealised or deferred gains and
losses”.
b) Impairment losses in respect of
credit risk
Impairment losses relating to fixedincome securities available for sale
(mainly bonds) are recognised under
“Cost of risk”. The existence of a credit
risk alone justifies recognising
impairment losses against fixed income
securities; a decline in value due simply
to an increase in interest rates does not.
In the event an impairment loss is
recognised, all accumulated unrealised
losses taken to equity must be reversed
to profit or loss. Impairment losses may
be
reversed.
Any
subsequent
appreciation resulting from an event
occurring since the recognition of the
impairment is also recognised to profit
or loss under “Cost of risk” when there
has been an improvement in the
borrower’s credit situation.
Held-to-maturity financial assets
• Classification criteria and transfer rules
Held-to-maturity financial assets are
securities with fixed or determinable
payments and a fixed maturity, and
which the group has the positive
intention and ability to hold to
maturity.
Transactions to hedge the interest rate
risk in respect of this category of
securities are not eligible for hedge
accounting under IAS 39.
Possibilities for selling or transferring
held-to-maturity
securities
are
extremely restricted under IAS 39
which,
depending
on
the
circumstances, may require the entire
portfolio to be reclassified at the level
of the group and to prohibit the use of
this category for two years.
• Basis for measurement and recognition
of income and charges
Held-to-maturity securities are recognised at fair value when acquired.
Subsequently they are measured at
amortised cost using the effective interest rate method, which factors in the
amortisation of any premiums, discounts and, if material, acquisition
costs.
Purchases and sales of securities are
Annual Report 2012
153
FINANCIAL STATEMENTS
NOTES
recognised on the date of settlement.
Income received from these securities
is recorded under “Interest and similar
income” in profit or loss.
• Credit risk
An impairment loss is recognised when
there is objective evidence that the
asset is impaired as a result of one or
more events having occurred after
initial recognition of the asset and
when this could generate a loss
(proven credit risk). Impairment
testing is carried out at each balance
sheet date for each security in turn.
The amount of the loss is measured as
the difference between the asset's
carrying amount and the present value
of estimated cash flows discounted at
the asset's original effective interest
rate, taking into account any
guarantees. The impairment loss is
recognised to profit or loss under “Cost
of risk”. Any subsequent appreciation
resulting from an event having
occurred since the recognition of the
impairment loss is also recognised to
profit or loss under “Cost of risk”.
Loans and receivables are recognised
initially at fair value. Subsequently they
are accounted for and measured in
accordance with the rules applied to
loans and receivables described in Note
3.1 dealing with loans and receivables.
• Classification of derivatives
and hedge accounting
• Credit risk
All derivatives not designated as
hedging
instruments
under
International Financial Reporting
Standards are automatically classified
as financial assets or financial liabilities
at fair value through profit or loss, even
when for financial purposes they were
entered into to hedge one or more risks.
An impairment loss is recognised when
there is objective evidence that the
asset is impaired as a result of one or
more events having occurred after
initial recognition of the asset and
when this could generate a loss (proven
credit risk). The amount of the loss is
measured as the difference between
the asset's carrying amount and the
present value of estimated cash flows
discounted at the asset's effective
interest rate, taking into account any
guarantees. The impairment loss is
recognised to profit or loss under “Cost
of risk”. Any subsequent appreciation
resulting from an event having
occurred since the recognition of the
impairment loss is also recognised to
profit or loss under “Cost of risk”.
Loans and receivables
3.5 Derivatives and hedge
accounting
• Classification criteria and transfer
rules
• Determination of fair value
of derivatives
IAS 39 authorises certain securities to
be classified as loans and receivables
when they have fixed or determinable
payments and they are not quoted in
an active market.
Classification as loans and receivables
may take place upon initial recognition
of the securities or upon their transfer
from financial assets at fair value
through profit or loss or from availablefor-sale securities pursuant to the
amendment to IAS 39 of October 2008.
The majority of over-the-counter
derivatives, swaps, future rate
agreements, caps, floors and simple
options are valued using standard,
generally accepted models (present
value of future cash flows, Black and
Scholes
model,
interpolation
techniques), based on observable
market data such as yield curves. The
valuations given by these models are
adjusted to take into account the
liquidity risk and the credit risk.
Derivatives are recognised as financial
assets when their market value is
positive and as financial liabilities
when their market value is negative.
• Basis for measurement and recognition
of income and charges
154 CRÉDIT MUTUEL
Derivatives classified as financial
assets or financial liabilities at fair
value through profit or loss
• Embedded derivatives
An embedded derivative is a
component of a hybrid instrument
that, when separated from its host
contract, meets the definition criteria
for a derivative. It has the effect,
notably, of changing certain cash
flows in a manner analogous to that of
a separate derivative.
The derivative is detached from the
host contract and recognised separately
as a derivative instrument at fair value
through profit or loss only if all of the
following three conditions are satisfied:
– the hybrid instrument hosting the
embedded derivative is not measured
at fair value through profit or loss;
– the economic characteristics of the
derivative and the associated risks are
not considered as being closely related
to those of the host contract; and
– separate measurement of the
embedded derivative is sufficiently
reliable
to
provide
relevant
information.
• Accounting
Realised and unrealised gains and losses
are recognised to profit or loss under
“Gains and losses on financial instruments
at fair value through profit or loss”.
Hedge accounting
IAS 39 provides for three types of
hedging relationship. The choice of the
hedging relationship is made according to the nature of the risk being
hedged.
A fair value hedge is a hedge of the
exposure to changes in the fair value of
financial assets or financial liabilities.
A cash flow hedge is a hedge of the
exposure to the variability in cash
flows of financial assets or financial
liabilities, firm commitments or
forward transactions.
Hedges of net investments in foreign
operations, which are accounted for in
the same way as cash flow hedges, are
not used by the group.
Hedging derivatives must meet the
criteria stipulated by IAS 39 to be
designated as hedging instruments for
accounting purposes. The hedging
instrument and the hedged item must
both qualify for hedge accounting.
The relationship between the
instrument covered and the hedging
instrument is documented formally
immediately upon inception of the
hedging
relationship.
This
documentation
includes
the
management objectives of the
hedging relationship, the nature of the
risk hedged, the underlying strategy,
the identification of the hedging
instrument and of the item hedged,
and the methods used to measure the
effectiveness of the hedge.
Hedge effectiveness is assessed
immediately upon inception of the
hedging
relationship
and
subsequently throughout its life, at the
very least at each balance sheet date.
Changes in the fair value or cash flows
of the hedging instrument must
approximately offset changes in the
fair value or cash flows of the hedged
item. Actual results must be within a
range of 80% to 125%. If this is not the
case,
hedge
accounting
is
discontinued prospectively.
• Fair value hedge of identified assets
and liabilities
In the case of a fair value hedge,
derivatives are measured at their fair
value as an offset to profit or loss in “Net
gains (losses) on financial instruments at
fair value through profit or loss”
symmetrically to the revaluation of the
hedged items carried out in connection
with the hedged risk. This rule is also
applied if the hedged item is recognised
at its amortised cost or in the case of a
financial asset classified as available for
sale. Changes in the fair value of the
hedging instrument and hedged risk
component will offset each other
partially or totally; only the ineffective
portion of the hedge is recognised in
profit or loss.
The portion corresponding to the
rediscounting of the derivative financial
instrument is recognised in profit or
loss under “Interest income and charges”
symmetrically to the interest income or
charges for the hedged item.
due notably to early repayments, the
cumulative adjustments are recognised
immediately in profit or loss.
The group has availed itself of the
possibilities offered by the European
Commission as regards accounting for
macro-hedging transactions. The
European Union's so-called carve out
amendment to IAS 39 enables customer
demand deposits to be included in
hedged fixed-rate liability portfolios with
no effectiveness measurement if underhedged. The maturities of the deposits
are established as a function of the runoff rules defined for asset-liability
management purposes.
For each portfolio of fixed rate assets or
liabilities, the maturity schedule of the
hedging derivatives is reconciled with
that of the hedged items to ensure that
there is no over-hedging.
The accounting method for fair value
macro-hedging derivatives is the same
as for fair value hedges.
Changes in the fair value of the hedged
portfolios are recorded in a specific line
of the balance sheet, “Revaluation
difference on portfolios hedged for interest
rate risk”, the other side of the entry
being to profit or loss.
• Cash flow hedges
If the hedging relationship is interrupted
or the effectiveness criteria are not met,
hedge accounting is discontinued on a
prospective basis. The hedging
derivatives are transferred to financial
assets or financial liabilities at fair value
through profit or loss and are accounted
for in accordance with the principles
applicable to this category. The carrying
amount of the hedged item is
subsequently no longer adjusted to
reflect changes in fair value. In the case
of initially hedged identified interest rate
instruments, valuation adjustments are
amortised over their remaining life. If
the hedged item has been derecognised,
In the case of cash flow hedging
relationships, the derivatives are
recognised in shareholders’ equity on
the balance sheet at their fair value for
the portion considered effective while
the portion considered as ineffective is
recorded in profit or loss under “Net
gains (losses) on financial instruments at
fair value through profit or loss”.
Amounts recorded in shareholders’
equity are reversed through profit or
loss under “Interest income and charges”
symmetrically to the flows of the
hedged item affecting profit or loss.
Annual Report 2012
155
FINANCIAL STATEMENTS
NOTES
The hedged items continue to be
recognised in accordance with the
rules specific to their accounting
category. If the hedging relationship is
interrupted or the effectiveness
criteria are not met, hedge accounting
ceases to be applied. The cumulative
amounts recorded in shareholders’
equity for the re-measurement of the
hedging derivative are maintained in
shareholders’ equity until such time as
the hedged transaction itself affects
profit or loss or when it is determined
that the transaction will not take place.
These amounts are then transferred to
profit or loss.
If the hedged item has been
derecognised,
the
cumulative
amounts recorded in shareholders'
equity are immediately transferred to
profit or loss.
shareholders’ equity if the entity has
the unconditional right to refuse to
redeem such interests, or if there are
legal or statutory provisions that
prohibit or significantly limit such
redemption. Under existing statutory
and legal provisions, shares issued by
the structures making up the
consolidating entity of the Crédit
Mutuel group are recognised under
shareholders’ equity.
3.10 Amounts due to customers
and credit institutions
The other financial instruments issued
by the group qualify for accounting
purposes as debt instruments if the
group has a contractual obligation to
deliver cash to the holders of such
instruments. This is the case, in
particular, for all the subordinated
securities issued by the group.
Regulated savings contracts
3.9 Provisions
3.6 Debt securities
Debt securities (certificates of deposit,
interbank market securities, bonds,
etc.) that are not classified at fair value
through profit or loss by option are
recognised initially at their issue
amount, when applicable net of
transaction costs.
These securities are subsequently
measured at amortised cost using the
effective interest rate method.
3.7 Subordinated debt
Both dated and undated subordinated
debt is separated from other debt
securities as, in the event of the
issuer’s liquidation, it is repaid only
after claims by other creditors have
been extinguished. Subordinated debt
is measured at amortised cost.
3.8 Distinction between liabilities
and shareholders’ equity
In accordance with IFRIC 2, the
interests of members are classified as
156 CRÉDIT MUTUEL
Provisions and reversals of provisions
for risks are classified by type under
the corresponding item of income or
expenditure.
A provision is set aside whenever it is
probable that an outflow of resources
representing economic benefits will be
necessary to extinguish an obligation
arising from a past event and when the
amount of the obligation can be
estimated accurately. Where applicable,
the net present value of this obligation
is calculated to determine the amount
of the provision to be set aside.
The provisions constituted by the
group cover, in particular:
– operating risks;
– employee commitments (see Note
3.12);
– execution risks on signature commitments;
– legal disputes and liability guarantees;
– tax risks; and
– risks related to home savings (see
Note 3.10).
These are fixed- or determinable-rate
financial liabilities. They are initially
recognised at fair value and measured
at subsequent balance sheet dates at
amortised cost using the effective
interest rate method, except in the
case of those recognised at fair value
by option.
Home savings accounts (comptes
épargne logement - CEL) and home
savings schemes (plans épargne
logement - PEL) are French regulated
products available to individual
customers. These products provide
retail investors with interest-bearing
savings vehicles during a first phase,
and grant them access to a mortgage
during a second phase. They generate
two kinds of commitments for the
establishments that distribute them:
– a commitment to pay a fixed rate of
interest in the future on the savings
(solely for home savings schemes, as
the interest rate on home savings
accounts is comparable to a variable
rate and is periodically revised in
accordance with an indexation
formula);
– a commitment to extend a loan
based on predetermined conditions
to customers who request one (both
products).
These commitments are estimated on
the basis of customer behavioural
statistics and market data. A provision is
set aside on the liability side of the
balance sheet to cover future charges
related
to
the
potentially
disadvantageous conditions of these
products in comparison with the
interest rates offered to individual
customers for products that are similar
but whose remuneration is not
regulated. This approach is carried out
by homogeneous generation in terms of
the regulated conditions for both home
savings accounts and home savings
schemes. The impact on profit or loss is
recorded as interest paid to customers.
3.11 Cash and cash equivalents
Cash and cash equivalents comprise
cash in hand, deposits and demand
loans and borrowings with central
banks and credit institutions.
For cash flow statement purposes,
UCITS are classified as an “operating”
activity and are not therefore
reclassified as cash.
3.12 Employee benefits
Employee benefits are recognised in
accordance with IAS 19 (revised), the
group having elected for the early
application of this standard. The
application of this standard resulted
in:
- for post-employment benefits arising
from defined benefit plans:
• the immediate recognition of
actuarial differences as unrealised
or deferred gains and losses in
equity and of plan modifications in
profit or loss;
• the application to plan assets of the
discount rate of the debt;
• additional disclosures in the notes
to the financial statements;
– for short-term benefits, a new
definition stating these are benefits
expected to be settled wholly before
12 months after the end of the
annual reporting period in which
the employees render the related
services (as opposed to payable
within 12 month in the previous
version).
The impact for the group of the early application of IAS 19 (revised) is presented in the table below:
€M
31.12.2011
31.12.2011
Pro forma
STATEMENT OF FINANCIAL POSITION
Provisions
2,179
2,126
23,211
2,132
23,193
2,113
(1,240)
(1,170)
1,012
1,013
(9,017)
(1,126)
2,214
(9,047)
(1,115)
2,195
STATEMENT OF COMPREHENSIVE INCOME
Actuarial differences on defined benefit plans
Gains and losses recognised directly in equity
(72)
(965)
(883)
PROFIT AND GAINS AND LOSSES RECOGNISED DIRECTLY
IN EQUITY
1,249
1,302
Equity – attributable to the owners
Consolidated reserves
Profit for the year
Gains et pertes latents comptabilisés
Unrealised or deferred gains or losses recognised directly in equity
Equity - attributable to non-controlling interests
INCOME STATEMENT
General operating expenses
Income tax expense
Profit for the year
_
Where applicable, provisions are recognised in respect of employee obligations under “Provisions for risks and
charges”. Changes in such provisions are recognised in profit or loss under “Staff costs”, except for amounts
representing actuarial differences, which are recognised as unrealised or deferred gains or losses recognised directly
in equity.
Annual Report 2012
157
FINANCIAL STATEMENTS
NOTES
Post-employment defined benefit
plans
These comprise retirement, early
retirement
and
supplementary
retirement plans under which the
group has a formal or implicit
obligation to provide employees with
pre-defined benefits.
These obligations are calculated using
the projected unit credit method, which
involves allocating entitlement to
benefits to periods of service by
applying the contractual formula for
calculating plan benefits. Such
entitlements are then discounted using
demographic
and
financial
assumptions such as:
– a discount rate, determined by
reference to the rate on long-term
private-sector borrowings as a
function of the term of the
commitments;
- the rate of salary increases, assessed as
a function of age brackets,
manager/non-manager classification
and regional characteristics;
- inflation rates, estimated by comparing
French treasury bond rates and
inflation-linked French treasury bond
rates at different maturities;
- staff turnover rates, determined by age
bracket, using the three-year average
for the ratio of resignations and
dismissals relative to the year-end
number of employees with permanent
contracts;
- retirement ages: estimated on a caseby-case basis using the actual or
estimated date of commencement of
full-time employment and the
assumptions set out in the law
reforming pensions, with a ceiling set
at 67 years of age; and
- life expectancy rates set out in INSEE
table TH/TF 00-02.
Differences arising from changes in
these assumptions and from differences
between previous assumptions and
actual experience constitute actuarial
158 CRÉDIT MUTUEL
differences. When the plan is funded by
assets, these are measured at fair value
and recognised in the income
statement for their expected yield.
Differences between actual and
expected yields also constitute actuarial
differences.
Actuarial differences are recognised as
unrealised or deferred gains or losses
directly in equity. Any plan curtailments
or terminations generate a change in
the obligation, which is recognised
immediately in profit or loss.
Post-employment defined contribution plans
Group entities contribute to various
retirement plans managed by
independent organisations, to which
they have no formal or implicit
obligation to make supplementary
payments in the event, notably, that
the fund’s assets are insufficient to
meet its commitments.
As such plans do not represent a
commitment for the group they are
not subject to a provision. The charges
are recognised in the period in which
the contribution is due.
Other long-term benefits
These represent benefits other than
post-employment benefits and end-ofservice indemnities expected to be
paid more than 12 months after the
end of the financial year in which staff
rendered the corresponding service.
They include, for example, long-service
awards.
The group’s commitment in respect of
other long-term benefits is measured
using the projected unit credit
method. Actuarial differences are
recognised immediately in profit or
loss.
Certain commitments in respect of
long-service awards are covered by
insurance policies. Only the portion
not covered is provisioned.
End-of-contract indemnities
These indemnities consist of benefits
granted by the group when an
employment contract is terminated
before the usual retirement age or
following the employee’s decision to
leave the group voluntarily in exchange
for an indemnity.
End-of-contract indemnity provisions
are discounted if payment is expected
to be made more than 12 months after
the balance sheet date.
Short-term benefits
These are benefits, other than end-ofcontract indemnities, payable within the
12 months following the closing date
and include salaries, social security
contributions and certain bonuses.
A charge is recognised in respect of
short-term benefits in the period in
which the services giving rise to the
entitlement to the benefit are provided
to the entity.
3.13 Insurance activities
The accounting principles and
measurement rules relating to assets
and liabilities arising from the writing
of insurance policies, including
inwards and outwards reinsurance,
and financial contracts that include a
discretionary profit-sharing clause, are
in accordance with IFRS 4.
Other assets held and liabilities issued
by fully-consolidated insurance
companies are recognised in accordance
with the rules applicable to all assets and
liabilities of the group.
Assets
For financial assets, investment
properties and non-current assets, the
accounting methods applied are those
described in these notes.
on the asset side, they are reported under
a separate heading.
accumulated
depreciation
and
amortisation and any impairment.
By way of an exception to the above,
financial assets representing technical
provisions relating to contracts
denominated in units of account are
presented under “Financial assets at
fair value through profit or loss”.
At the balance sheet date, a test is
performed to determine if the liabilities
recognised in connection with the
contracts (net of other related assets and
liabilities such as deferred acquisition
costs and portfolio securities acquired)
are adequate to cover estimated future
cash flows at that date. Any shortfall in
technical provisions is recognised in
profit or loss for the period, and may
subsequently be reversed if appropriate.
When a non-current asset comprises
several components likely to be
replaced at regular intervals, with
different uses or providing economic
benefits over differing lengths of time,
each component is recognised
separately from the outset and is
depreciated
or
amortised
in
accordance with its own depreciation
schedule. The component approach is
applied to both operating and
investment properties.
Liabilities
Insurance
liabilities
representing
commitments towards policyholders or
designated beneficiaries are presented
under “Technical provisions for insurance
contracts”. They continue to be valued,
recognised and consolidated applying
French accounting standards.
Technical provisions for insurance
contracts consist mainly of mathematical
provisions. As a rule, these provisions
correspond to the redemption value of
the contracts. The main risks covered by
these contracts are death, disability and
industrial disablement (for loan
insurance).
Technical provisions for unit-linked
contracts are measured, at the balance
sheet, by reference to the realisable value
of the contracts’ underlying assets.
Technical provisions for non-life
insurance contracts correspond to
unearned premiums (i.e. premiums
written relating to future accounting
periods) and to claims payable.
Mirror accounting is applied to insurance
contracts providing for the discretionary
sharing of profits with policyholders. The
provision for deferred profit-sharing
resulting from the application of this
method represents the share of
unrealised gains and losses on assets
accruing to the policyholders. Provisions
for deferred profit-sharing are shown
under assets or liabilities by each legal
entity and are not netted off between
entities in the consolidation scope. When
Compte de résultat
Income and expenses arising from
insurance contracts issued by the
group are reported under “Income
from other activities” and “Expenses on
other activities”.
Income and expenses arising from
proprietary activities carried on by
insurance entities are reported under
the headings corresponding to the
nature of the transactions.
3.14 Non-current assets
Non-current assets reported on the
balance sheet include tangible and
intangible assets used in operations as
well as investment properties.
Operating non-current assets are used
for the production of services or for
administrative purposes. Investment
properties are property assets held to
generate rental income and/or gains
on the invested capital. The historical
cost method is used to recognise both
operating and investment properties.
Non-current assets are initially
recognised at acquisition cost plus any
directly attributable costs required to
bring them into working order with a
view to their use. They are
subsequently measured at amortised
historical cost, i.e. their cost less
The depreciable or amortisable value of
a non-current asset is determined after
deducting its residual value net of
disposal costs. As the useful life of noncurrent assets is generally equal to their
expected economic life, residual values
are not recognised.
Non-current assets are depreciated or
amortised over their estimated useful
lives at rates reflecting the estimated
consumption of the assets’ economic
benefits by the entity owning the
assets. Intangible assets with an
indefinite useful life are not amortised.
Depreciation and amortisation charges
on operating non-current assets are
recognised
under
“Provisions,
amortisation and depreciation for
operating non-current assets” in profit or
loss.
The following depreciation
amortisation periods are used:
and
Property, plant and equipment:
– Land improvements: 15-30 years
– Buildings – shell: 20-80 years
(depending on the type of building)
– Buildings – equipment: 10-40 years
– Fixtures and fittings: 5-15 years
– Office furniture and equipment:
5-10 years
– Safety equipment: 3-10 years
Annual Report 2012
159
FINANCIAL STATEMENTS
NOTES
– Vehicles and moveable equipment:
3-5 years
- IT hardware: 3-5 years
Intangible assets:
– Software purchased or developed
internally: 1-10 years
– Business goodwill acquired: 9-10 years
(if customer contract portfolio
acquired).
Depreciable non-current assets are
tested for impairment at each period
end whenever there is evidence of loss
of value. Non-depreciable non-current
assets such as lease rights are tested
for impairment once a year.
If evidence of impairment is found, the
asset’s recoverable amount is
compared with its net carrying
amount. In the event of a loss of value,
impairment is recognised in profit or
loss, thus modifying the basis for
future depreciation. Impairment
losses are reversed if there is an
improvement in the estimated
recoverable value or there is no longer
any evidence of impairment.
The net carrying amount following the
reversal of an impairment provision
cannot exceed the net carrying
amount that would have been
calculated if the impairment had not
been recognised.
“Net gains (losses) on other assets”.
Gains or losses on disposals of
investment properties are recorded in
profit or loss on the lines “Income from
other activities” and “Charges on other
activities”, respectively.
The fair value of investment properties
is disclosed in the notes to the
financial statements at the end of each
financial year. It is based on the
market value determined by appraisals
carried out by independent valuers.
3.15 Fees and commissions
Fees and commissions in respect of
services are recorded as income and
charges according to the nature of
the services involved.
Fees and commissions linked directly
to the grant of a loan are amortised
(see Note 3.1).
Fees and commissions remunerating
a service provided on a continuous
basis are recognised to profit or loss
over the period during which the
service is provided.
Fees and commissions remunerating
a significant service are recognised to
profit or loss in full upon execution of
the service.
3.16 Corporation tax
Impairment charges on operating
non-current assets are recognised
under “Provisions, amortisation and
depreciation for operating non-current
assets” in profit or loss.
Impairment charges and reversals on
investment properties are recognised
in profit or loss under “Charges on
other activities” and “Income from
other activities”, respectively.
Gains or losses on disposals of
operating non-current assets are
recorded in profit or loss on the line
160 CRÉDIT MUTUEL
The income tax charge includes all tax,
both current and deferred, chargeable in
respect of the income for the period
under review.
Current income taxes are determined
in accordance with applicable tax
regulations.
The Territorial Economic Contribution
(Contribution Economique Territoriale –
CET), which is composed of the
Business Real Property Contribution
(Cotisation Foncière des Entreprises CFE) and the Business Contribution on
Added Value (Cotisation sur la Valeur
Ajoutée des Entreprises - CVAE), is
treated as an operating charge and,
accordingly, the group does not
recognise any deferred taxes in the
consolidated financial statements.
the differential between the interest
rate granted to the customer and a
pre-determined benchmark rate.
Accordingly, no discount is applied to
these subsidised loans.
Deferred tax
The terms and conditions of this
compensation
mechanism
are
periodically reviewed by the State.
As required by IAS 12, deferred
taxes are calculated in respect of
temporary differences between the
value on the consolidated balance
sheet of an asset or liability and its
tax value, with the exception of
goodwill.
The State subsidies received are
recognised under “Interest and similar
income” and spread over the term of
the relevant loans, in accordance with
IAS 20.
Deferred taxes are calculated using
the liability method, applying the
corporation tax rate known at the
end of the period and applicable to
subsequent years.
Deferred tax assets net of deferred
tax liabilities are recorded only
when there is a high probability that
they will be utilised. Current or
deferred tax is recognised as income
or a charge, except for that relating
to unrealised or deferred gains or
losses recognised in shareholders’
equity, for which the deferred tax is
allocated directly to shareholders’
equity.
Deferred tax assets and liabilities
are netted if they arise in the same
entity or in the same tax group, are
subject to the same tax authority
and if there is a legal right of set off.
Deferred tax is not discounted.
3.17 Interest payable by the State
on certain loans
In the context of government
measures to assist the agricultural and
rural sector, and to assist with home
purchases, certain group entities grant
loans at reduced rates that are set by
the State. Such entities therefore
receive State subsidies equivalent to
3.18 Financial guarantees
and financing commitments
A financial guarantee is treated as an
insurance policy if it provides for a
specific payment to be made to
reimburse the holder of the guarantee
for a loss incurred as the result of the
failure of a specific debtor to make a
payment on maturity of a debt
instrument.
In accordance with IFRS 4, such financial
guarantees continue to be measured
using French accounting standards, i.e.
they are treated as off-balance sheet
items, until such time as the current
standards are revised. Accordingly, they
are subject to a provision for liabilities if
an outflow of resources is probable.
By contrast, financial guarantees
requiring a payment to be made in the
event of a change in a financial variable
(price, rating, credit index, etc.) or a nonfinancial variable, provided that in such
a case the variable is not specific to one
of the parties to the contract, are
covered by IAS 39 and are therefore
treated as derivative instruments.
Financing commitments that are not
considered as derivatives within the
meaning of IAS 39 are not shown on the
balance sheet. However, they give rise to
provisions in accordance with the
provisions of IAS 37.
3.19 Transactions
denominated
in foreign currencies
Financial assets and financial
liabilities denominated in a currency
other than the local currency are
translated at the exchange rate ruling
on the balance sheet date.
Monetary financial assets
and liabilities
Foreign exchange gains and losses
arising on the translation of monetary
assets and liabilities are recognised in
profit or loss under “Net gains (losses)
on portfolios at fair value through profit
or loss”.
Non-monetary financial assets
and liabilities
Foreign exchange gains and losses
arising on the translation of nonmonetary assets and liabilities are
recognised in profit or loss under “Net
gains (losses) on portfolios at fair value
through profit or loss” if the item is
classified as at fair value through profit
or loss, or under “Unrealised or deferred
gains or losses” if the item is classified
under available for sale financial
assets.
When
consolidated
securities
denominated in a foreign currency are
funded by a borrowing in the same
foreign currency, the future cash flows
relating to the borrowing are hedged.
3.20 Non-current assets classified
as held for sale
and discontinued operations
Non-current assets, or groups of assets,
are classified as held for sale if they are
available for sale and provided a sale is
highly probable and likely to be
completed within the next 12 months.
The related assets and liabilities are
presented on two distinct balance sheet
lines under, respectively, “Non-current
assets classified as held for sale” and
“Liabilities directly associated with noncurrent assets classified as held for sale”.
They are recognised at the lower of their
carrying amount and their fair value less
the costs to sell, and are no longer
depreciated or amortised.
Any recognised impairment loss on such
assets and liabilities is recognised to
profit and loss.
Discontinued operations are a
component of an entity that either has
ceased to trade or is classified as held for
sale, or correspond to a subsidiary
acquired exclusively with a view to resale.
They are shown on a separate line of
profit or loss under “Gains and losses on
discontinued operations, net of tax”.
3.21 Judgements and estimates
used in preparation of the
financial statements
The preparation of the group’s
financial statements necessitates the
formulation of assumptions in order to
effect the required measurements,
which carries risks and uncertainties
concerning these assumptions’ future
realisation.
The future outcome of such
assumptions may be influenced by
several factors, in particular:
– the activities of national and
international markets;
– changes in interest rates and foreign
exchange rates;
– economic and political conditions in
certain business sectors or countries;
and
– regulatory and legislative changes.
Accounting estimates requiring the
formulation of assumptions are used
mainly for measurement of the
following items:
Annual Report 2012
161
FINANCIAL STATEMENTS
NOTES
– fair value of financial instruments
not quoted on an active market. The
distinction between an active and
non-active market, the definition of
a forced transaction, and the
definition
of
an
observable
parameter all require the exercise of
judgement (see Note 3.4 Securities);
– retirement plans and other future
employee benefits;
– permanent impairment losses;
– impairment of receivables;
– provisions;
– impairment of intangible assets and
goodwill; and
– deferred tax assets.
NOTE 4: SEGMENT
REPORTING (IFRS 8)
In terms of segment reporting, the
group has two levels of disclosure
that are based on the group’s own
internal reporting system. Data by
sector of activity is the primary level
and data by geographic area is the
secondary level.
Segment reporting
(primary level)
by
activity
Sector data for the Crédit Mutuel
group is organised into five operating
segments:
– Retail Banking;
– Corporate and Investment Banking;
– Insurance;
– Asset Management and Private
Banking; and
– Other Activities.
Retail Banking covers the network of
Crédit Mutuel’s local mutual banks,
CIC's regional banks as well as all the
specialised activities whose products
are marketed through the network: all
business
banking
(i.e.
microenterprises, small and medium-sized
enterprises and industries excluding
large corporates), finance and property
leasing, factoring, real estate, etc.
162 CRÉDIT MUTUEL
Corporate and Investment Banking
comprises the following activities:
– corporate banking, which covers
banking and related services
provided to large companies
through a specific sales department
or subsidiary; and
– investment banking, which covers
market activities, merchant banking,
venture capital, private equity,
financial intermediation, mergers
and acquisitions, etc.
Insurance comprises the life and nonlife insurance activities (life insurance,
property and casualty insurance and
insurance brokerage).
Asset Management and Private Banking
comprises two activities:
– asset
management:
fund
management (UCITS, real estate
funds), employees savings schemes,
custody and depositary services for
its own customer base, as opposed
to that of the network; and
– private banking: wealth management
and estate planning.
Other Activities comprise technical
support subsidiaries that cannot be
included in the retail banking segment
(technology, electronic payments,
training, media and travel).
NOTE 5: RELATED PARTIES
Parties related to the Crédit Mutuel
group are the consolidated companies,
including companies accounted for
using the equity method, and the thirdlevel administrative entities (Caisse
Centrale du Crédit Mutuel and
Confédération Nationale du Crédit
Mutuel).
Transactions between the Crédit Mutuel
group and related parties are carried out
at the normal market conditions
prevailing at the time of the transaction.
The list of consolidated companies is
provided in note 1.2. As transactions
carried out and any outstandings at the
end of the period between group
companies consolidated using the full
method are eliminated on consolidation,
only transactions between companies
over which the group exercises joint
control (consolidated using the
proportional method) are included in
the tables in the notes for the portion not
eliminated on consolidation, along with
transactions between companies over
which the group exercises significant
influence, which are consolidated using
the equity method.
NOTE 6: STANDARDS AND INTERPRETATIONS ADOPTED BY THE EUROPEAN UNION NOT YET
APPLIED DUE TO THEIR APPLICATION DATE
IAS/IFRS
SUBJECT
APPLICATION DATE
IMPACT
OF APPLICATION
Amendment to IAS 1
Disclosures of details relating to other comprehensive
income
Effective for annual
periods beginning on
or after 1 January 2013
Limited
Amendment to IFRS 7
Disclosures relating to the offsetting of financial assets
and financial liabilities
Effective for annual
periods beginning on
or after 1 January 2013
Limited
Amendment to IAS 32
Offsetting of financial assets and financial liabilities
Effective for annual
periods beginning on
or after 1 January 2014
Limited
IFRS 10, 11 and 12 and Standards dealing with the consolidation of and financial Effective for annual
IAS 28
information provided regarding non-consolidated entities periods beginning on
or after 1 January 2014
Limited
IFRS 13
Limited
Fair value measurement
Effective for annual
periods beginning on
or after 1 January 2013
NOTE 7: EVENTS AFTER THE END OF THE REPORTING PERIOD
None.
Transactions between the different
operating segments are carried out at
market conditions.
Segment reporting by geographic
area (secondary level)
For the Crédit Mutuel group, three
geographic areas have been defined
for this secondary level of reporting:
– France;
– rest of Europe; and
– rest of world.
The geographic analysis of assets and
earnings is based on the country in
which the activities are recorded for
accounting purposes.
Annual Report 2012
163
FINANCIAL STATEMENTS
NOTES
2 - FINANCIAL DATA
NOTE 2: FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
NOTE 2A - FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
1. NOTES TO THE STATEMENT OF FINANCIAL POSITION
31.12.2012
NOTE 1: CASH IN HAND, BALANCES WITH CENTRAL BANKS AND LOANS AND ADVANCES
TO CREDIT INSTITUTIONS
Trading
NOTE 1A - LOANS AND ADVANCES TO CREDIT INSTITUTIONS
Cash in hand and balances with central banks
Central banks
of which mandatory reserves
Cash in hand
Total
Loans and advances to credit institutions
Crédit Mutuel network accounts (1)
Other ordinary accounts
Loans
Other receivables
Securities not listed on an active market
Repurchase agreements
Loans having given rise to specific provisions
Accrued interest
Provisions
Total
31.12.2012
31.12.2011
15,114
950
1,214
7,435
1,016
1,129
16,328
8,564
34,652
2,427
16,654
788
2,344
1,361
925
706
(280)
29,174
2,033
8,627
686
3,728
1,141
1,099
635
(310)
59,577
46,813
31.12.2012
31.12.2011
Central banks
343
282
Total
343
282
1,765
23,089
601
1,343
195
1,682
24,799
2,963
3,297
106
26,993
32,847
Total
Fair value
by option
Total
33,829
1
8,874
8,721
153
24,954
22,583
2,371
0
10,337
10,312
49,233
1,645
22,030
21,877
153
25,558
23,163
2,395
2,893
10,337
10,312
14,074
1,412
11,929
11,929
0
733
723
10
2,548
30,551
24
7,598
7,483
115
22,929
20,492
2,437
0
7,135
7,096
44,625
1,436
19,527
19,412
115
23,662
21,215
2,447
2,548
7,135
7,096
TOTAL
18,297
44,166
62,463
16,622
37,686
54,308
The maximum exposure to credit risk on assets classified at fair value by option through profit or loss amounted
to €43,875 million in 2012.
NOTE 2B - FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
31.12.2012
31.12.2011
8,106
24,270
7,007
24,490
32,376
31,497
31.12.2012
31.12.2011
1,506
1,048
458
6,091
509
1,088
641
447
5,117
802
8,106
7,007
Financial liabilities held for trading purposes
Short sales of securities
- Bonds and other fixed-income securities
- Shares and other variable-yield securities
Trading derivatives
Other financial liabilities held for trading purposes
TOTAL
164 CRÉDIT MUTUEL
Trading
15,404
1,644
13,156
13,156
0
604
580
24
2,893
TOTAL
NOTE 1B - AMOUNTS DUE TO CREDIT INSTITUTIONS
31.12.2011
Total
.Securities
- Government securities
- Bonds and other fixed-income securities
. Listed
. Not listed
- Shares and other
. Listed
. Not listed
Trading derivatives
Other financial assets
of which repurchase agreements
Financial liabilities held for trading purposes
Financial liabilities at fair value by option through profit or loss
(1) Relates mainly to outstandings with CDC (LEP, LDD, Livret Bleu, Livret A)
Amounts due to credit institutions
Other ordinary accounts
Loans
Others liabilities
Repurchase agreements
Accrued interest
Fair value
by option
Annual Report 2012
165
FINANCIAL STATEMENTS
NOTES
Financial liabilities at fair value by option through profit or loss
31.12.2011
31.12.2012
Carrying
amount
Debt securities
Due to credit institutions
Due to customers
Total
31.12.2011
Amount due Difference
at maturity
Carrying
amount
Amount due
at maturity
Difference
222
23,284
764
214
23,281
762
8
3
2
129
23,692
669
128
23,680
669
1
12
0
24,270
24,257
13
24,490
24,477
13
NOTE 2C - FAIR VALUE HIERARCHY
31.12.2012
Financial assets
• Available for sale
- Government and equivalent securities – Available for sale
- Bonds and other fixed-income securities - Available for sale
- Shares and other variable-yield securities - Available for sale
- Participating interests and other long-term investments – Available
for sale
- Investments in related companies - Available for sale
• Trading and fair value option
- Government and equivalent securities - Trading
- Government and equivalent securities - Fair value option
- Bonds and other fixed-income securities - Trading
- Bonds and other fixed-income securities - Fair value option
- Shares and other variable-yield securities - Trading
- Shares and other variable-yield securities - Fair value option
- Loans and receivables from credit institutions - Fair value option
- Loans and receivables from customers - Fair value option
- Derivatives and other financial assets - Trading
• Derivative instruments entered into for hedging purposes
Total
Financial liabilities
• Trading and fair value option
- Due to credit institutions - Fair value option
- Due to customers - Fair value option
- Debt securities - Fair value option
- Derivatives and other financial liabilities - Trading
• Derivative instruments entered into for hedging purposes
Total
Level 1
Level 2
Level 3
Total
98,508
12,589
76,420
8,309
1,447
32
1,359
-
1,956
464
329
101,911
12,621
78,243
8,638
1,157
9
763
1,929
33
39,174
1,558
1
10,082
4,172
594
22,720
47
47
20,954
86
2,681
4,693
416
5,804
4,533
2,741
2,400
400
2,335
393
9
10
1,818
105
23
480
62,463
1,644
1
13,156
8,874
604
24,954
5,804
4,533
2,893
2,423
137,682
24,801
4,314
166,797
2,081
2,081
-
30,189
23,284
764
222
5,919
3,601
106
106
34
32,376
23,284
764
222
8,106
3,635
2,081
33,790
140
36,011
Financial assets
• Available for sale
- Government and equivalent securities – Available for sale
- Bonds and other fixed-income securities - Available for sale
- Shares and other variable-yield securities - Available for sale
- Participating interests and other long-term investments – Available for sale
- Investments in related companies - Available for sale
• Trading and fair value option
- Government and equivalent securities - Trading
- Government and equivalent securities - Fair value option
- Bonds and other fixed-income securities - Trading
- Bonds and other fixed-income securities - Fair value option
- Shares and other variable-yield securities - Trading
- Shares and other variable-yield securities - Fair value option
- Loans and receivables from credit institutions - Fair value option
- Loans and receivables from customers - Fair value option
- Derivatives and other financial assets - Trading
• Derivative instruments entered into for hedging purposes
Total
Level 1
Level 2
Level 3
Total
93,171
15,218
69,712
7,065
1,144
32
35,053
1,097
24
8,928
3,472
719
20,757
56
-
2,381
324
2,024
8
25
16,407
315
2,084
4,117
416
2,793
4,342
2,340
1,586
1,974
567
287
765
355
2,848
917
9
14
1,756
152
12
97,526
15,542
72,303
7,352
1,917
412
54,308
1,412
24
11,929
7,598
733
22,929
2,793
4,342
2,548
1,598
128,224
20,374
4,834
153,432
Financial liabilities
• Trading and fair value option
- Due to credit institutions - Fair value option
- Due to customers - Fair value option
- Debt securities - Fair value option
- Derivatives and other financial liabilities - Trading
• Derivative instruments entered into for hedging purposes
1,929
1,929
-
29,486
23,692
669
129
4,996
4,593
82
82
13
31,497
23,692
669
129
7,007
4,606
Total
1,929
34,079
95
36,103
In 2011, there was no material transfer (i.e. exceeding 10% of total respective assets or total respective liabilities) between level 1
and level 2 lines.
Fair value hierarchy - Details of level 3
2012
Opening
balance Purchases
Shares and other variable-yield
securities - Fair value option
1,756
2011
Opening
balance Purchases
Shares and other variable-yield
securities - Fair value option
1,644
366
466
Sales
Redemptions
Transfers
Gains and
losses
to P&L
Gains
and losses
to equity
0 (374)
(1)
0
62
0
Sales
Redemptions
Transfers
Gains and
losses
to P&L
Gains
and losses
to equity
0 (389)
(12)
0
32
0
Issues
Issues
Other
Closing
balance
9 1,818
Other
Closing
balance
15 1,756
In 2012, there was no material transfer (i.e. exceeding 10% of total respective assets or total respective liabilities) between level
1 and level 2 lines
166 CRÉDIT MUTUEL
Annual Report 2012
167
FINANCIAL STATEMENTS
NOTES
NOTE 3: HEDGING
NOTE 4: BREAKDOWN OF DERIVATIVES
NOTE 3A - DERIVATIVE HEDGING INSTRUMENTS
31.12.2012
31.12.2012
Cash flow hedges
Fair value hedges (change through profit or loss)
Total
31.12.2011
Assets
Liabilities
Assets
Liabilities
13
2,410
166
3,469
37
1,561
155
4,451
2,423
3,635
1,598
4,606
- Hedge ineffectiveness recognised to profit or loss amounted to a charge of €8 million.
- Changes in cash flow recycled to profit or loss amounted to €4 million.
NOTE 3B - REVALUATION DIFFERENCE ON PORTFOLIOS HEDGED AGAINST INTEREST RATE RISK
FAIR VALUE
31.12.2012
31.12.2011
Fair value of interest rate risk by portfolio
- Financial assets
- Financial liabilities
1,360
(3,451)
1,138
(2,812)
CHANGE
IN FAIR VALUE
222
(639)
Trading derivatives
Interest rate instruments
Swaps
Other firm contracts
Options and conditional instruments
Foreign exchange instruments
Swaps
Other firm contracts
Options and conditional instruments
Other instruments
Swaps
Other firm contracts
Options and conditional instruments
Sub-total
Hedging derivatives
Fair value hedges
Swaps
Other firm contracts
Options and conditional instruments
Cash flow hedges
Swaps
Other firm contracts
Options and conditional instruments
Sub-Total
Total
31.12.2011
Notional
Assets
Liabilities
Notional
Assets
Liabilities
276,373
27,360
26,123
2,076
4
94
4,984
2
284
375,778
17,718
39,167
1,526
4
120
4,251
1
182
81,684
13,407
16,388
20
401
60
71
391
55
84,379
21,230
17,518
41
172
195
77
116
196
13,658
2,569
4,560
462,122
75
0
163
2,893
142
0
162
6,091
16,697
3,162
815
576,464
376
0
114
2,548
246
0
48
5,117
86,062
0
3,427
2,410
0
0
3,469
0
0
93,209
0
4,029
1,561
0
0
4,451
0
0
1,546
0
30
91,065
13
0
0
2,423
161
5
0
3,635
2,387
0
30
99,655
36
0
1
1,598
151
4
0
4,606
553,187
5,316
9,726
676,119
4,146
9,723
Swaps are valued with an OIS curve if they are collateralised or with a BOR curve otherwise. Hedged items are valued with a BOR
curve. The difference resulting from the use of different valuation curves for the hedged items and the hedging instruments is
accounted for as hedge ineffectiveness.
Note that, from 31 December 2012, the valuation of the derivatives makes allowance for the counterparty risk.
168 CRÉDIT MUTUEL
Annual Report 2012
169
FINANCIAL STATEMENTS
NOTES
NOTE 5: FINANCIAL ASSETS AVAILABLE FOR SALE
NOTE 6: CUSTOMERS
NOTE 5A - FINANCIAL ASSETS AVAILABLE FOR SALE
NOTE 6A - CUSTOMER LOANS AND RECEIVABLES
31.12.2012
Government securities
Bonds and other fixed-income securities
- Listed
- Not listed
Shares and other variable-yield securities
- Listed
- Not listed
Long-term investments
- Investments in associates
- Other long-term investments
- Investments in related undertakings
- Securities lent
Accrued interest
Total
o/w unrealised gains or losses
recognised in shareholders' equity
o/w impaired fixed-income securities
o/w provisions for impairment
o/w listed investments in associates
31.12.2011*
31.12.2011**
CHANGE
12,477
77,514
76,694
820
8,676
7,682
994
2,360
1,582
341
433
4
884
15,342
71,605
70,736
869
7,388
6,697
691
2,289
1,345
568
373
3
902
15,342
71,605
70,736
869
7,388
6,697
691
2,537
1,593
568
373
3
902
0
0
0
0
0
0
0
248
248
0
0
0
0
101,911
97,526
97,774
248
810
230
(2,496)
857
(877)
1,107
(3,153)
812
(1,030)
1,107
(3,153)
1,060
0
0
0
248
* Restated for the consolidation of BPE ** Reported.
31.12.2012
Performing receivables
• Receivable-related claims
• Other customer loans and advances
- Home loans
- Other loans and receivables including repurchase
agreements
• Accrued interest
• Securities not quoted on an active market
Insurance and reinsurance receivables
Loans having given rise to specific provisions
Gross loans and advances
Specific provisions
General provisions
Sub-Total I
327,197
4,912
321,224
180,021
323,216
5,318
316,679
178,952
323,216
5,318
316,679
178,952
141,203
816
245
313
13,906
341,416
(8,376)
(688)
137,727
848
371
282
13,480
336,978
(8,258)
(629)
137,727
848
371
282
13,480
336,978
(8,207)
(631)
332,352
328,091
328,140
11,027
6,535
4,065
427
(163)
10,380
6,322
3,827
231
(170)
10,380
6,322
3,827
231
(166)
Sub-Total II
10,864
10,210
10,214
343,216
338,301
338,354
12
19
10
22
10
22
Gross carrying amount
Impairment of uncollectable lease payments
% held
Crédit Logement
Caisse de Refinancement de l'Habitat (CRH)
TICKEHAU Capital Partners
Foncière des Régions
Véolia Environnement
Not listed
Not listed
Not listed
Listed
Listed
< 10%
< 40%
12%
< 10%
< 5%
31.12.2011**
Finance leases (net investment)
• Equipment
• Property
• Receivables having given rise to specific provisions
Provisions for impairment
Total
NOTE 5B – LIST OF MAIN UNCONSOLIDATED INVESTMENTS
31.12.2011*
* Restated for correction made to the method of calculating the credit risk provision at Financo ** Reported.
Shareholders'
Total
Net banking
equity
assets
income
or revenue
9,881
49,575
178
14,642
50,406
207
4
1
752
29,647
1,463
312
127
6,040
9,835
Résultat
Finance leases with customers
89
1
(9)
469
(317)
31.12.2011*
Gross carrying amount
Impairment of uncollectable lease payments
Net carrying amount
10,380
(170)
10,210
Increase
Decrease
Other
31.12.2012
2,462
(44)
2,418
(1,827)
51
(1,776)
12
0
12
11,027
(163)
10,864
* Restated.
The above information, except for percentages held, relates to 2011.
170 CRÉDIT MUTUEL
Annual Report 2012
171
FINANCIAL STATEMENTS
NOTES
NOTE 9: RECLASSIFICATIONS OF FINANCIAL INSTRUMENTS
NOTE 6B – AMOUNTS DUE TO CUSTOMERS
31.12.2012
31.12.2011
132,736
97,536
35,200
84
132,820
76,717
66,337
202
942
169
144,367
119,659
84,935
34,724
78
119,737
71,703
65,084
151
783
154
137,875
277,187
257,612
• Regulated savings deposits
- On demand
- Term
• Liabilities associated with savings deposits
Sub-total
• Demand accounts
• Term accounts and borrowings
• Repurchase agreements
• Related liabilities
• Insurance and reinsurance liabilities
Sub-total
Total
The information below concerns reclassifications made in 2008. There has been no reclassification since then.
31.12.2012
Assets reclassified
Fair
value
Carrying
value
Fair
value
Portfolio of loans and receivables
Portfolio of financial assets available for sale
2,929
5,489
2,910
5,492
4,584
7,413
4,280
7,414
Total
8,418
8,402
11,998
11,694
Gains (losses) that would have been recognised to profit or loss
in application of fair value rule had the assets not been reclassified
Gains (losses) that would have been recognised to equity
had the assets not been reclassified
NOTE 7: FINANCIAL ASSETS HELD TO MATURITY
31.12.2012
31.12.2011
• Securities
- Government securities
- Bonds and other fixed-income securities
. Listed
. Not listed
• Accrued interest
16,623
1,377
15,246
14,666
580
52
19,447
1,395
18,052
12,417
5,635
72
Total – gross
16,675
19,519
51
(35)
158
(114)
16,640
19,405
Of which written down for impairment
Provisions for impairment
Total-net
31.12.2011
Carrying
value
Gains (losses) recognised to profit or loss in respect
of reclassified assets
31.12.2012
31.12.2011
635
(185)
(498)
48
92
(7)
31.12.2012
31.12.2011
1,921
906
2,146
809
NOTE 10: TAXES
10A - CURRENT TAXES
Current tax assets (to profit or loss)
Current tax liabilities (to profit or loss)
10B - DEFERRED TAXES
31.12.2012
NOTE 8: CHANGE IN IMPAIRMENT PROVISIONS
31.12.2011*
Loans and receivables -Credit institutions
Loans and receivables - Customers
Securities available for sale - Fixed income
Securities available for sale -Variable income
Securities held to maturity
Total
Charges Write-backs
Other
31.12.2012
31.12.2011**
(310)
(9,057)
(803
(2,350)
(114)
(15)
(2,079)
(23)
(166)
(10)
40
1,959
662
144
89
5
(50)
40
0
0
(280)
(9,227)
(124)
(2,372)
(35)
(310)
(9,004)
(803)
(2,350)
(114)
(12,634)
(2,293)
2,894
(5)
(12,038)
(12,581)
Deferred tax assets (to profit or loss)
Deferred tax assets (to equity)
Deferred tax liabilities (to profit or loss)
Deferred tax liabilities (to equity)
1,337
313
578
486
31.12.2011*
1,194
807
495
112
* Restated for deferred taxes relating to actuarial differences on the application of IAS 19 (revised) and to the correction made to the method of calculating the credit risk provision
at Financo
* Restated for correction made to the method of calculating the credit risk provision at Financo. ** Reported.
172 CRÉDIT MUTUEL
Annual Report 2012
173
FINANCIAL STATEMENTS
NOTES
11B - ACCRUED CHARGES, DEFERRED INCOME AND OTHER LIABILITIES
Breakdown of deferred tax by main category
31.12.2012
Assets
• Tax losses carried forward
• Temporary differences
- Deferred gains or losses on available-for-sale securities
- Other unrealised or deferred gains or losses
- Provisions
- Unrealised finance leasing reserve
- Results of transparent companies
- Other temporary differences
• Offsetting
- To equity
- To profit or loss
Total deferred tax assets and liabilities
Liabilities
31.12.2011*
Assets
31.12.2012
31.12.2011
482
22
1,334
2,226
8,843
790
367
1,193
2,365
3,182
12,907
7,897
Other liabilities
Settlement accounts on securities transactions
Payments to be made on securities
Other creditors
1,002
231
5,685
907
179
4,829
Sub-total
6,918
5,915
Liabilities
181
2,557
272
64
652
1
0
1,568
(1,088)
(23)
(1,065)
0
2,152
509
0
32
155
1
1,455
(1,088)
(23)
(1,065)
299
3,146
872
32
729
1
0
1,512
(1,444)
(97)
(1,347)
0
2,051
209
0
4
140
4
1,694
(1,444)
(97)
(1,347)
1,650
1,064
2,001
607
Accrued charges and deferred income
Blocked accounts on collection transactions
Currency adjustment accounts
Accrued charges
Deferred income
Sundry adjustment accounts
Sub-total
* Restated for deferred taxes relating to actuarial differences on the application of IAS 19 (revised) and for the correction made to the method of calculating the credit risk provision
at Financo
Other liabilities of insurance companies
Security deposits and guarantees received
Other
184
0
164
0
Deferred tax is calculated using the liability method. For French companies, the deferred tax rate is 34.43%, rising
to 36.10% to include an exceptional additional contribution when net banking income or revenue exceeds €250 million.
Sub-total
184
164
20,009
13,976
Total
NOTE 11: ACCRUAL ACCOUNTS AND OTHER ASSETS AND LIABILITIES
NOTE 11C: NON-CURRENT ASSETS AND LIABILITIES HELD FOR SALE
11A - PREPAYMENTS, ACCRUED INCOME AND OTHER ASSETS
31.12.2012
31.12.2011
Prepayments and accrued income
Securities collection accounts
Currency adjustment accounts
Accrued income
Sundry accruals
696
87
556
3,177
1,102
342
598
2,404
Sub-total
4,516
4,446
Other assets
Settlement accounts on securities transactions
Guarantee deposits paid
Other debtors
Inventories and similar
Sundry
235
8,706
7,558
49
67
149
8,057
6,366
54
14
16,615
14,640
Sub-total
ended 31 December 2012, this is
presented as disposal group, i.e. a
group of assets, with some associated
liabilities, which are to be disposed of
in a single transaction within the
meaning of IFRS 5. Amounts reported
under assets and liabilities were
determined on the basis of individual
contracts or by applying allocation
keys. The sale is expected to be
completed in the first half of 2013. The
assets concerned total €2.8 billion, of
which €2.6 billion in customer loans.
The liabilities total €2.6 billon, of
which €1.9 billion in amounts due to
credit institutions.
NOTE 12: INVESTMENTS IN COMPANIES ACCOUNTED FOR USING THE EQUITY METHOD
Other assets of insurance companies
Technical provisions - reinsurers’ share
Other
340
106
326
105
Sub-total
446
431
21,577
19,517
Total
After approval by the group’s top
management and by the Board of
Directors in October 2012, CM Arkéa
group launched the sale of part of the
activity of Banque Privée Européenne.
This sale does not concern a distinct
sector of activity. Accordingly, in the
financial statements for the year
Share in net profit or loss of companies accounted for using the equity method
31.12.2012
Investment Share of net
profit or loss
BMCE*
RMA Watanya*
BPM*
BPE*
Other
Total
31.12.2011**
Investment
Share of net
profit or loss
31.12.2011***
Investment Share of net
profit or loss
923
209
147
410
168
15
(25)
(58)
(105)
13
831
298
196
388
170
21
16
(31)
27
(5)
831
298
196
0
171
21
16
(31)
0
(5)
1,857
(160)
1,883
28
1,496
1
* In accordance with IAS 28, goodwill recognised in respect of entities over which significant influence is exercised is included in the value of the investments accounted for using
the equity method.
** Restated for the consolidation of Banco Popular Espanôl. *** Reported.
174 CRÉDIT MUTUEL
Annual Report 2012
175
FINANCIAL STATEMENTS
NOTES
Accounting treatment of investment in Banco Popular Español - Correction of error
The investment in Banco Popular
Español (BPE) was accounted for by
the equity method for the first time at
end of this reporting period given that
significant influence is exercised by
the group over BPE. This is reflected
in the group being represented on the
Board of Directors of BPE, in the
existence of commercial agreements
between the networks of Crédit
Mutuel in France and of BPE in Spain
and Portugal, and in a partnership
through a banking joint venture in
Spain.
As these relations have existed since
the end of 2010, the change of
consolidation method was treated as
the correction of an error within the
meaning of IAS 8. Accounting for the
investment in BPE by the equity
method has the following impact on
the statement of financial position at
31 December 2011:
(€M)
RESTATEMENTS
Financial assets available for sale
Investments in companies accounted for using the equity method
Equity – attributable to the owners
Consolidated reserves
Gains and losses recognised to equity
Profit for the year
In the income statement for the year
ended 31 December 2011, the
restatement led to a €26.8 million
increase in the share in net profit or loss
of companies accounted for using the
equity method and a €12.6 million
reduction in net gains (losses) on
(248)
388
140
82
43
14
available for sale financial assets, so that
the net impact on the profit was an
increase of €14.2 million.
The fair value of the investment in BPE
within the meaning of paragraph 37 of
IAS 28, based on the listed share price,
was €215.5 million as at 31 December
2012. The value of this investment was
tested for impairment at the end of the
reporting period by reference to its
estimated useful value as required by IAS
39 and IAS 36. This test did not result in
the recognition of an impairment loss at
31 December 2012.
Financial information published by the main companies accounted for using the equity method
FOR THE YEAR ENDED 31.12.10
Banque Marocaine du Commerce Extérieur (1) (2)
RMA Watanya (1) (2)
Banca Popolare di Milano (1)
Banco Popular Español
TOTAL
ASSETS
NET BANKING
INCOME
NET
PROFIT
207,988
239,588
51,931
157,618
8,140
3,973
1,352
3,778
1,508
(297)
(621)
(2,461)
A sensitivity analysis of the model’s
main parameters, notably the discount
rate, reveals that at 100-basis point
increase in this rate would reduce the
useful value by 12%.
Based on this valuation, the carrying
value of this investment in the accounts
is €147 million after impairment. For
the record, the closing price for the
BPM share on the Milan Stock
Exchange on 31 December 2012 was 45
euro cents. The opening share price on
26 February 2013 was 51 euro cents.
The market capitalisation of the
group’s investment in BPM was €102
million at 31 December 2012 and €115
million at 26 February 2013. At 30
September 2012, per the consolidated
financial statements drawn up in
accordance with IFRS, BPM had total
assets of €52,439 million and equity of
€4,270 million and recorded a net loss
of €106 million in the first nine months
of 2012.
In the 2012 financial statements, the
group recognised a loss of €8 million,
being its share of the results of BPM for
the period, along with an impairment
loss of €49 million to measure the
investment at its useful value. These
items are reported under the group’s
share in the net profit or loss of
176 CRÉDIT MUTUEL
financial statements should corresponds
to the group’s share of the net assets
determined in accordance with IFRS,
within the limit of the investment’s useful
value. The useful value was determined
using the dividend discount model
(DDM), which consists in discounting to
their present value future distributable
earnings over the long term, obtained
from earnings forecasts reduced by
amounts appropriated to reserves in
order to comply with solvency ratio
regulatory requirements. The earnings
forecasts correspond to amounts in the
business plan of 24 July 2012, which is the
most recent available information. The
discount rate used corresponds to the
risk-free rate augmented by a risk
premium that is a function of the volatility
displayed by the BPM share price. Based
on this approach the useful value is 62
euro cents per share.
Banco Popular Español
The investment in Banco Popular
Español (BPE) is consolidated by the
equity method given the significant
influence exercised by the group over
BPE: Crédit Mutuel-CIC is represented
on the Board of Directors of BPE, a
banking joint venture has been set up
by the two groups, and there are a series
of reciprocal commercial agreements in
the French and Spanish retail and
corporate banking markets.
The value at which the group’s investment
in BPE is reported in the accounts
represents the group’s share of the net
assets of BPE determined in accordance
with IFRS, within the limit of the
recoverable amount based on the
investment’s useful value. The useful value
was determined from estimated future
cash flows distributable to shareholders,
making allowance for regulatory capital
requirements applicable to credit
institutions. The earnings forecasts used
correspond to the official management
guidance published by BPE in October
2012, revised subsequent to the stress test
of Spanish banks performed by Oliver
Wyman. The discount rate corresponds to
the rate for long-term Spanish
government bonds augmented by a risk
premium that is a function of the
sensitivity displayed by the BPM share
price to market risk, determined by
reference to the IBEX 35 index published
by the Sociedad de Bolsas.
Based on this approach the useful value is
€1.25 per share, which results in a higher
value than the equity-method carrying
value of the investment in the
consolidated financial statements at 31
December 2012 (€410 million in total). A
sensitivity analysis of the model’s main
parameters, notably the discount rate,
reveals that at 100-basis point increase in
this rate would reduce the useful value by
7.8%. Similarly, a 5% reduction in
earnings as forecast in BPE’s business
plan would reduce the useful value by
4.8%. These reductions in the
investment’s useful value would not,
however, affect its carrying value in the
group’s consolidated financial statements.
For the record, the closing price for the
BPE share on the Madrid Stock
Exchange was 58.6 euro cents on
31 December 2012 and 66 euro cents
on 15 February 2013. The market
capitalisation of the group’s investment
in BPE was €216 million at
31 December 2012 and €243 million at
15 February 2013.
NOTE 13: INVESTMENT PROPERTY
(1) 2011 data. (2) In millions of Moroccan dirham.
Banca Popolare di Milano Scarl
The investment in Banca Popolare di
Milano (BPM) is consolidated by the
equity method given the significant
influence exercised by CIC, which
continues to be represented on the
Supervisory Board in a strategic advice
capacity and participates in the meetings
of the Executive Committee and Financial
Committee. Accordingly the valuation of
this investment in the consolidated
companies accounted for using the
equity method.
Historical cost
Depreciation and impairment
Net carrying amount
31.12.2011
Increase
Decrease
Other
31.12.2012
1,788
(347)
447
(47)
(91)
4
0
(1)
2,144
(391)
1,441
400
(87)
(1)
1,753
The fair value of property recognised at cost came to €2,391 million at 31 December 2012 (€2,019 million at 31 December 2011).
Annual Report 2012
177
FINANCIAL STATEMENTS
NOTES
NOTE 15: GOODWILL
NOTE 14: NON-CURRENT ASSETS
14A - PROPERTY, PLANT AND EQUIPMENT
31.12.2011
Increase
Cost
Land used in operations
Buildings used in operations
Other property, plant and equipment
499
5,116
2,741
6
228
334
(6)
(84)
(221)
14
(23)
31
513
5,237
2,885
Total
8,356
568
(311)
22
8,635
Depreciation and impairment
TerraiLand used in operations
Buildings used in operations
Other property, plant and equipment
(3)
(2,758)
(2,029)
0
(253)
(211)
0
71
137
2
18
(45)
(1)
(2,922)
(2,148)
Total
(4,790)
(464)
208
(25)
(5,071)
3,566
104
(103)
(3)
3,564
Decrease Other changes
31.12.2012
Of which buildings rented under finance leases
31.12.2011
Gross carrying amount
Depreciation and impairment
Total
Increase
Decrease
Other
31.12.2012
120
(37)
0
0
0
0
0
3
120
(34)
83
0
0
3
86
14B - INTANGIBLE ASSETS
31.12.2011
Increase
Historical cost
• Non-current assets produced internally
• Non-current assets acquired
- Software
- Other
144
2,312
828
1,484
56
151
33
118
(3)
(113)
(74)
(39)
45
25
3
22
242
2,375
790
1,585
Total
2,456
207
(116)
70
2,617
Amortisation and impairment
• Non-current assets produced internally
• Non-current assets acquired
- Software
- Other
(71)
(1,029)
(552)
(477)
(36)
(188)
(102)
(86)
2
77
72
5
(42)
34
18
16
(147)
(1,106)
(564)
(542)
Total
(1,100)
(224)
79
(8)
(1,253)
1,356
(17)
(37)
62
1,364
Decrease Other changes
31.12.2012
Increase
5,100
(184)
11
(4)
(73)
1
5,034
(183)
4,916
11
(4)
(72)
4,851
Carrying amount
Subsidiary
Net carrying amount
31.12.2011
Goodwill - gross amount
Impairment
Carrying amount
of goodwill
at 31.12.2011
Increase
Decrease
Targobank
2,763
Groupe CIC
515
Cofidis/Monabanq
395
Targobank Espagne (formerly Banco Popular Hipotecario) 183
UFG - La française des placements
162
Procapital
122
Fortunéo
107
Monext
100
EI Telecom (ex NRJ Mobile)
78
CIC Private Banking - Banque Pasche
54
Banque Casino
27
Other
410
11
(1)
(3)
Total
11
(4)
4,916
Variation
Other
dépréciation
changes
31.12.2012
Carrying amount
of goodwill
at 31.12.2012
(73)
2,763
515
395
183
162
122
107
100
78
55
26
345
(72)
4,851
1
0
NOTE 16: DEBT SECURITIES
Certificates of deposit
Interbank certificates and negotiable debt securities
Bonds
Accrued interest
Total
31.12.2012
31.12.2011
1,094
64,774
55,961
1,622
1,061
64,992
51,985
1,529
123,451
119,567
31.12.2012
31.12.2011
96,931
2,654
12,462
338
87,696
2,543
11,754
320
112,385
102,313
8,157
2,251
0
340
738
326
112,045
101,249
NOTE 17: INSURANCE TECHNICAL RESERVES
Life
Non-life
Unit-linked
Other
Total
Of which: Deferred profit-sharing - liability
Net carrying amount
Decrease Other changes
Deferred profit-sharing - asset
Reinsurers’ share of technical provisions
Net technical reserves
Details regarding the results of the insurance activity are provided in Note 26.
178 CRÉDIT MUTUEL
Annual Report 2012
179
FINANCIAL STATEMENTS
NOTES
NOTE 18: PROVISIONS AND CONTINGENT LIABILITIES
Commitments for retirement and similar benefits
NOTE 18A - PROVISIONS
2012
31.12.2011*
31.12.2011*
Provisions for risks
Guarantee obligations
Loan and guarantee commitments
Country risks
Tax
Disputes
Sundry receivables
Other provisions
Home savings accounts and schemes
Sundry contingencies
Other
Provisions for retirement commitments
Total
Increases
Reversals
for the period
(used)
Reversals
for the period
(not used)
Other
changes
31.12.2012
495
164
1
18
69
184
59
862
155
421
286
822
135
56
0
0
20
26
33
192
5
125
62
199
(74)
(7)
0
0
(23)
(35)
(9)
(95)
(18)
(66)
(11)
(39)
(149)
(64)
(4)
0
(22)
(37)
(22)
(90)
(30)
(33)
(27)
(17)
38
18
3
(2)
10
11
(2)
16
(1)
13
4
220
445
167
0
16
54
149
59
885
111
460
314
1,185
2,179
526
(208)
(256)
274
2,515
Other
changes(1)
31.12.2012
Obligations relating to defined benefit retirement
plans and similar, excluding pension funds
Retirement indemnities
Top-up retirement benefits
Premiums linked to long-service awards (other long-term benefits)
548
150
111
84
82
32
(24)
(25)
(6)
203
2
2
811
209
139
Total recognised
809
198
(55)
207
1,159
13
1
(1)
13
26
13
1
(1)
13
26
822
199
(56)
220
1,185
Top-up defined benefit plans covered
by the group's retirement funds
Commitments to employees and retired employees
Fair value of assets
Total recognised
Total
(1) This column concerns mainly the restatement of benefits covered by internal contracts (reclassification of technical reserves as retirement commitments).
31.12.2010
Provisions for risks
Guarantee obligations
Loan and guarantee commitments
Country risks
Tax
Disputes
Sundry receivables
Other provisions
Home savings accounts and schemes
Sundry contingencies
Other
Provisions for retirement commitments
Total
Reversals
*Restated
*Restated
2011
Increases
Increases
Reversals
Reversals
for the period for the period
(used)
(not used)
Other
changes
31.12.2011*
587
181
3
20
125
171
87
1,027
204
534
289
359
122
61
0
0
6
27
28
164
1
95
68
60
(100)
(14)
(1)
(2)
(57)
(16)
(10)
(143)
(9)
(121)
(13)
(22)
(126)
(54)
(2)
0
(2)
(22)
(46)
(158)
(42)
(87)
(29)
(18)
12
(10)
1
0
(3)
24
0
(28)
1
0
(29)
443
495
164
1
18
69
184
59
862
155
421
286
822
1,973
346
(265)
(302)
427
2,179
*Restated
Outstanding loans granted in respect of home savings products
Provisions in respect of home savings product loans
31.12.2010
Increases
Reversals
Obligations relating to defined-benefit retirement
plans and similar, excluding pension funds
Retirement indemnities
165
Top-up retirement benefits
110
Premiums linked to long-service awards (other long-term benefits) 71
44
10
4
(16)
(10)
(12)
355
40
48
548
150
111
Total recognised
346
58
(38)
443
809
13
2
(2)
0
13
Top-up defined-benefit plans covered
by the group's retirement funds
Commitments to employees and retired employees
Fair value of assets
Total recognised
Provisions for home savings accounts and schemes
Deposits in respect of home savings schemes during the savings phase
Provisions in respect of home savings schemes
Deposits taken on home savings accounts during the savings phase
Provisions in respect of home savings accounts
Provisions set aside in respect of home savings products
Reversal of provisions set aside in respect of home savings products
Commitments for retirement and similar benefits
Total
0-4 years
4-10 years
+10 years
Total
5,925
0
9,060
2
11,162
45
26,147
47
4,537
30
(5)
48
Other
changes )
31.12.2011*
13
2
(2)
0
13
359
60
(40)
443
822
*Restated
(1) This column concerns mainly the restatement of benefits covered by internal contracts (reclassification of technical reserves as retirement commitments).
1,373
34
Deposits in respect of home savings schemes excluding the Capital range.
180 CRÉDIT MUTUEL
Annual Report 2012
181
FINANCIAL STATEMENTS
NOTES
Details of fair value of plan assets
Discount rates
Discount rates based on maturity of commitments at level of regional groups
31.12.2012
31.12.2011
2.8% to 2.9%
3.1% to 4.8%
31.12.2012
Retirement indemnities
Change in
actuarial liability
2012
31.12.2011*
Interest
charge
Cost of Cost of Insurance Change in Payments to Translation
services
past premiums actuarial beneficiaries differences
rendered services
differences
Other
Debt
instruments
Equity
instruments
Real
estate
Other
Assets listed in an active market
Assets not listed in an active market
74%
0%
18%
0%
0%
1%
3%
3%
Total recognised
74%
18%
1%
6%
Debt
instruments
Equity
instruments
Real
estate
Other
Assets listed in an active market
Assets not listed in an active market
74%
0%
20%
0%
0%
0%
4%
1%
Total recognised
74%
20%
0%
5%
31.12.2012
(mergers,
liquidations)
Détails de la juste valeur des actifs du régime
31.12.2011*
Commitments
Insurance contract outside
group and assets managed
externally
321
16
0
0
6
10
(6)
0
56
403
Provisions
548
27
41
21
-6
166
(33)
0
48
811
Cost of Cost of Insurance Change in Payments to Translation
services
past premiums actuarial beneficiaries differences
rendered services
differences
Other
31.12.2011*
(mergers,
liquidations)
Change in
actuarial liability
2011
869
31.12.2010
43
Interest
charge
41
21
0
176
(39)
0
104
1,214
*Restated
Commitments in respect of retirement indemnities arising from defined benefit plans
Average duration (1)
Commitments
Insurance contract outside
group and assets managed
externally
507
17
280
1
Provisions
227
16
32
4
0
18
(33)
324
869
Retirements indemnities
15.8
(1) Excluding foreign entities of CM11 group.
3
32
4
-3
(3)
18
(30)
0
40
321
284
548
NOTE 18B - CONTINGENT LIABILITIES
None
*Application of IAS 19 (revised) increased the provision by €53 million (restatement and deferred recognition of CIC group’s commitments in respect of retirement indemnities)
NOTE 19: SUBORDINATED DEBT
A 50 basis point increase in the discount rate would lead to a €56 million decrease in 2012 commitments, while a 50 basis
point decrease would lead to a €64 million increase in these commitments.
Change
in fair value
of plan
assets 2012
Fair value
of plan assets
Change
in fair value
of plan
assets 2011
Fair value
of plan assets
182 CRÉDIT MUTUEL
31.12.2011
Discounting
Yield in plan
effect assets in excess
of interest
income
Insurance
premiums
Payments to
beneficiaries
Translation
differences
44
128
(25)
0
Discounting
Yield in plan
effect assets in excess
of interest
income
Insurance
premiums
Payments to
beneficiaries
Translation
differences
41
(17)
0
Other
31.12.2012
(mergers,
liquidations)
Subordinated debt
Participating loans
Perpetual subordinated debt
Other debt
Accrued interest
Total
631
31.12.2010
614
11
11
(18)
51
840
Other
31.12.2011
31.12.2012
31.12.2011
4,909
32
1,705
1
96
5,352
44
1,834
19
113
6,743
7,362
(mergers,
liquidations)
1
631
Annual Report 2012
183
FINANCIAL STATEMENTS
NOTES
NOTE 21: COMMITMENTS GIVEN AND RECEIVED
Main subordinated debt issues
Issuer
(in € millions)
Type
Date
Amount
Amount
Maturity
of issue
issued
outstanding
at year-end
date
Banque Fédérative du Crédit Mutuel
Banque Fédérative du Crédit Mutuel
Banque Fédérative du Crédit Mutuel
Banque Fédérative du Crédit Mutuel
Banque Fédérative du Crédit Mutuel
Banque Fédérative du Crédit Mutuel
Banque Fédérative du Crédit Mutuel
Banque Fédérative du Crédit Mutuel
Banque Fédérative du Crédit Mutuel
Banque Fédérative du Crédit Mutuel
Crédit Mutuel Arkéa
Crédit Mutuel Arkéa
SR
July-01/December-02
SR September-03/February-04
SR
December-07
SR
June-08
SR
December-08
SR
December-11
SR
October-10
SSP
December-04
SSP
February-05
SSP
April-05
SR
September-08
SSP
July-04
700
800
300
300
500
1,000
1,000
750
250
404
300
114
500
720
300
300
500
1,000
917
742
250
378
268
114
July -13
September -15
December -15
juin-16
December -16
December -18
octobre-20
Undated
Undated
Undated
September -18
Undated
NOTE 20: SHAREHOLDERS' EQUITY AND RESERVES
NOTE 20A - SHAREHOLDERS' EQUITY - ATTRIBUTABLE TO THE OWNERS (EXCLUDING UNREALISED GAINS
OR LOSSES)
31.12.2012
Capital and capital reserves
- Share capital
- Share premium and other similar amounts
Consolidated reserves
- Regulated reserves
- Translation reserves
- Other reserves
- Retained earnings
Total
31.12.2011*
31.12.2011**
9,770
9,747
23
25,018
12
16
24,889
101
9,156
9,128
28
23,150
12
110
22,952
76
9,156
9,128
28
23,193
12
110
22,995
76
34,788
32,306
32,349
* Restated. ** Reported.
31.12.2012
Total
31.12.2012
31.12.2011
Financing commitments
Commitments given to credit institutions
Commitments given to customers
1,882
58,502
1,884
63,760
Guarantee commitments
Commitments given to credit institutions
Commitments given to customers
1,691
16,519
2,589
16,705
Commitments on securities
Other commitments given
812
688
COMMITMENTS RECEIVED
31.12.2012
31.12.2011
Financing commitments
Commitments received from credit institutions
Commitments received from customers
28,550
4
24,379
0
Guarantee commitments
Commitments received from credit institutions
Commitments received from customers
33,948
14,937
36,137
13,748
628
369
31.12.2012
31.12.2011
11
8,706
25,413
5
8,057
27,483
34,130
35,545
Commitments on securities
Other commitments received
Assets given as guarantees for liabilities
Securities loaned
Guarantee deposits for market transactions
Securities given under repurchase agreements
NOTE 20B - UNREALISED OR DEFERRED GAINS OR LOSSES
Unrealised or deferred gains or losses *** on:
- Available-for-sale assets
- Cash flow hedges
- Actuarial differences on defined benefit plans
COMMITMENTS GIVEN
31.12.2011*
31.12.2011**
810
(154)
(214)
(877)
(140)
71
(1,030)
(140)
0
442
(1,088)
(1,170)
* Restated for actuarial differences arising on the application if IAS 19 (revised), the consolidation of BPE, the correction to the method of calculating the credit risk provision at
Financo and the change of presentation for group translation differences et du changements de présentation des écarts de conversion groupe.
Total
For its refinancing activity, the group
assigns debt instruments and/or equity
instruments under repurchase agreements. This results in the transfer of these
instruments, with full title, to the counter-
party, who may in turn loan these instruments. Coupons and dividends accrue to
the borrower. These transactions give rise
to margin calls. The group is exposed to
the risk that these instruments will not be
returned. At 31 December 2012, assets
given under repurchase agreements had
a fair value of €25,009 million.
** Reported.
*** Net of corporation tax and after adjustment for mirror accounting
184 CRÉDIT MUTUEL
Annual Report 2012
185
FINANCIAL STATEMENTS
NOTES
NOTE 25: NET GAINS (LOSSES) ON FINANCIAL ASSETS AVAILABLE FOR SALE
2. Notes to the income statement
NOTE 22: INTEREST AND SIMILAR INCOME AND CHARGES
31.12.2012
31.12.2012
Credit institutions and central banks
Customers
- o/w finance and operating leases
Hedging derivative instruments
Financial assets available for sale
Financial assets held to maturity
Debt securities
Subordinated debt
Total
o/w interest income and charges calculated at the effective interest rate
o/w interest on liabilities at amortised cost
31.12.2011
Income
Charges
Income
Charges
1,361
17,063
3,239
3,331
862
465
(1,541)
(8,286)
(2,818)
(4,004)
1,572
17,168
3,187
2,205
910
283
(1,360)
(7,321)
(2,781)
(2,634)
(2,849)
(56)
23,082
19,751
(16,736)
(12,732)
(12,732)
22,138
19,933
(14,371)
(11,737)
(11,737)
Total changes in fair value
Of which trading derivatives
Total
14
74
0
93
35
48
-8
0
18
13
0
93
67
135
-8
Total
88
168
31
287
Dividends
Gains/losses realised
Impairment
Total
Government securities, bonds and other fixed-income securities
Shares and other variable-yield securities
Long-term investments
Other
19
68
0
12
26
55
(84)
0
(36)
(104)
0
12
9
19
(84)
Total
87
9
(140)
(44)
31.12.2011*
31.12.2011
Income
Charges
Income
Charges
26
1,357
827
545
10
20
44
2,053
(6)
(27)
(51)
(6)
(22)
(65)
(5)
(2)
(5)
(962)
25
1,390
907
568
18
22
47
2,088
(18)
(3)
(6)
(1,009)
4,337
(1,058)
4,497
(1,129)
NOTE 24: NET GAINS (LOSSES) ON FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT
OR LOSS
Trading instruments
Instruments at fair value by option
Ineffective portion of hedges
- On cash flow hedges
- On fair value hedges
. Change in fair value of hedged items
. Change in fair value of hedging items
Foreign exchange gain (loss)
Impairment
Government securities, bonds and other fixed-income securities
Shares and other variable-yield securities
Long-term investments
Other
* Restated for the consolidation of BPE (dividends)
31.12.2012
Total
Gains/losses realised
(2,975)
(81)
NOTE 23: FEES AND COMMISSIONS
Credit institutions
Customers
Securities
o/w activities managed on behalf of third parties
Derivative instruments
Foreign exchange
Loan commitments and guarantee obligations
Services rendered
Dividends
31.12.2012
31.12.2011
691
250
8
0
8
(1,253)
1,261
45
(40)
(149)
(52)
0
(52)
75
(127)
63
994
(178)
(781)
(797)
NOTE 26: INCOME FROM AND CHARGES ON OTHER ACTIVITIES
31.12.2012
31.12.2011*
31.12.2011**
Income from other activities
. Insurance contracts
. Investment property:
- Provisions and impairment losses reversed
- Gains on disposals
. Charges rebilled
. Other income
16,746
5
1
4
88
2,066
14,942
18
1
17
76
2,057
14,942
18
1
17
76
2,057
Sub-total
18,905
17,093
17,093
Charges on other activities
. Insurance contracts
. Investment property:
- Provisions and impairment losses recognised
- Losses on disposals
. Other charges
(14,088)
(49)
(47)
(2)
(1,101)
(12,802)
(57)
(44)
(13)
(1,183)
(12,802)
(57)
(44)
(13)
(1,208)
Sub-total
(15,238)
(14,042)
(14,067)
3,667
3,051
3,026
Total other net income (charges)
* Restated. ** Reported.
Including, at 31 December 2012, €63 million estimated based on a valuation model comprising non-observable market data
186 CRÉDIT MUTUEL
Annual Report 2012
187
FINANCIAL STATEMENTS
NOTES
NOTE 27B: OTHER OPERATING CHARGES
Net income from insurance activities
31.12.2012
Premiums earned
Cost of benefits
Changes in provisions
Other technical and non-technical charges
Net investment income
Total
31.12.2012
31.12.2011
11,520
(7,404)
(3,007)
(2,776)
4,325
11,770
(7,332)
(2,177)
(2,721)
2,600
2,658
2,140
31.12.2011*
31.12.2011**
Taxes other than corporation tax
External services
Sundry expenses
(453)
(2,702)
(146)
(374)
(2,663)
(106)
(374)
(2,638)
(106)
Total
(3,301)
(3,143)
(3,118)
* Restated. ** Reported.
NOTE 27C: DEPRECIATION, AMORTISATION AND IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT
AND INTANGIBLE ASSETS RECOGNISED AND REVERSED
NOTE 27: GENERAL OPERATING EXPENSES
31.12.2012
31.12.2011*
31.12.2012
31.12.2011
Depreciation and amortisation:
- Property, plant and equipment
- Intangible assets
Impairment :
- Property, plant and equipment
- Intangible assets
(667)
(474)
(193)
(1)
(1)
0
(638)
(465)
(173)
(1)
0
(1)
Total
(668)
(639)
31.12.2011**
Staff costs
Other charges
(5,694)
(3,969)
(5,260)
(3,782)
(5,290)
(3,757)
Total
(9,663)
(9,042)
(9,047)
* Restated. ** Reported.
NOTE 27A - STAFF COSTS
31.12.2012
31.12.2011*
31.12.2011**
Wages and salaries
Social security costs
Short-term benefits
Employee profit-sharing and incentives
Payroll and other similar taxes
Other
(3,516)
(1,505)
(4)
(280)
(382)
(7)
(3,315)
(1,338)
(7)
(246)
(353)
(1)
(3,318)
(1,365)
(7)
(246)
(353)
(1)
Total
(5,694)
(5,260)
(5,290)
* Restated to reflect reclassification of actuarial differences to equity following the application of IAS 19 (revised) ** Reported.
EAVERAGE STAFF NUMBERS
Operational staff
Executives
Total
o/w France
o/w Rest of world
188 CRÉDIT MUTUEL
31.12.2012
31.12.2011
48,844
30,216
49,050
28,929
79,060
77,979
67,133
11,927
67,150
10,829
NOTE 28: COST OF RISK
31.12.2012
Increases
Recoveries
Uncollectable
receivables
covered
Uncollectable
receivables
not covered
Collections
of receivables
previously
TOTAL
written off
Credit institutions
Customers
. Finance leases
. Other
(15)
(1,915)
(12)
(1,903)
38
1,837
15
1,822
(3)
(828)
(8)
(820)
(1)
(411)
(3)
(408)
0
139
1
138
19
(1,178)
(7)
(1,171)
Sous total
(1,930)
1 875
(831)
(412)
139
(1,159)
(10)
(23)
(96)
16
436
110
0
(509)
(3)
0
(45)
(2)
0
31
0
6
(110)
9
(2,059)
2,437
(1,343)
(459)
170
(1,254)
Held-to-maturity assets
Available-for-sale assets
Other
Total
Annual Report 2012
189
FINANCIAL STATEMENTS
NOTES
31.12.2011
Increases
Recoveries
Uncollectable
receivables
covered
Uncollectable
receivables
not covered
Collections
of receivables
previously
written off
TOTAL
Credit institutions
Customers
. Finance leases
. Other
(3)
(2,052)
(16)
(2,036)
51
2,028
17
2,011
0
(874)
(9)
(865)
(41)
(385)
(6)
(379)
0
120
0
120
7
(1,163)
(14)
(1,149)
Sub-total
(2,055)
2,079
(874)
(426)
120
(1,156)
(9)
(492)
(94)
3
19
134
0
(55)
(4)
0
(55)
0
0
44
0
(6)
(539)
36
(2,650)
2,235
(933)
(481)
164
(1,665)
Held-to-maturity assets
Available-for-sale assets
Other
Total
The agreement between Crédit Mutuel
Nord Europe Belgium (CMNE Belgium)
and Citigroup led to the acquisition on 30
April 2012 of all the retail activities of
Citibank Belgique. This investment is an
opportunity for CMNE Belgium to
develop significantly its presence in
Belgium, as the activity taken over
concerns more than half a million
customers, in addition to which the
agreement covers the credit card and
consumer credit activities (point-of-sale
financing). The simplified statement of
financial position of Citibank Belgique at
the date of acquisition is presented below:
Assets
Available for sale financial assets
Loans and advances to credit institutions
Loans and advances to customers
Prepayments, accrued income and other assets
Plant, property, equipment and intangible assets
Total assets
642
513,457
2,096,514
76,064
7,219
2,693,896
Liabilities and equity
NOTE 29: GAINS OR LOSSES ON OTHER ASSETS
31.12.2012
31.12.2011
14
(20)
34
0
76
(17)
93
(3)
14
73
Property, plant and equipment and intangible assets
. Losses on disposals
. Gains on disposals
Gains (losses) on disposals of consolidated securities
Total
Amounts due to credit institutions
Amounts due to customers
Accrued charges, deferred income and other liabilities
Provisions
Equity
Total liabilities and equity
Equity restated as at the date of
acquisition amounted to €269 million.
As the shares were purchased for €224
million, the transaction generated
negative goodwill of €45 million,
In 2011, gains on disposals arose notably from the sale of ICM Reinsurance.
Total
31.12.2012
31.12.2011
(27)
45
(9)
2
18
(7)
In 2012, the negative goodwill recognised to profit and loss arose on the acquisition of Citibank Belgium.
which may be adjusted within
12 months following the acquisition
under IFRS. The negative goodwill
includes a fair value adjustment to
loans and receivables for a negative
amount of €31 million. The simplified
income statement of Citibank
Belgique for the year ended
31 December 2012 is presented below:
31.12.2012
Net banking income
General operating expenses
Gross operating profit
Cost of risk
Operating profit
Net gains (losses) on other assets
Profit on ordinary activities before tax
Income tax expense
Profit for the period
190 CRÉDIT MUTUEL
2,693,896
Income statement
NOTE 30: CHANGES IN GOODWILL
Impairment
Negative goodwill charged to profit and loss
150,002
2,181,740
33,392
59,682
269,080
212,944
(146,321)
66,623
(8,803)
57,820
0
57,820
(18,524)
39,296
Annual Report 2012
191
FINANCIAL STATEMENTS
NOTES
NOTE 31: TAX CHARGE FOR THE PERIOD
3. Notes to the statement of comprehensive income
Breakdown of tax charge for the period
NOTE 32: RECLASSIFICATION OF GAINS AND LOSSES RECOGNISED DIRECTLY TO EQUITY
31.12.2012
31.12.2011*
Current taxes
Deferred taxes
Adjustments for prior years
(1,248)
(69)
6
(1,052)
(84)
12
Total
(1,311)
(1,124)
* Restated for deferred taxes relating to actuarial differences on the application of IAS 19 (revised) and for the correction made to the method of calculating the credit risk provision
at Financo
Reconciliation of actual tax charge and theoretical tax charge
31.12.2012
31.12.2011*
Theoretical tax rate
Impact of special tax regime for venture capital companies (SCR)
and commercial real property leasing companies (SICOMI)
Impact of reduced tax rate on long-term capital gains
Impact of specific tax rates at foreign entities
Permanent timing differences
Other
36.10%
36.10%
(0.68%)
(1.27%)
(0.05%)
3.12%
(1.67%)
(0.57%)
(2.80%)
(0.21%)
4.42%
(3.11%)
Effective tax rate
35.55%
33.83%
Taxable income **
3,688
3,323
(1,311)
(1,124)
Tax charge
* Restated for the BPE dividends, actuarial differences on the application of IAS 19 (revised) and the correction made to the method of calculating the credit risk provision at Financo.
** Taxable income corresponds to the profit before tax adjusted for the share of the results contributed by entities accounted for using the equity method.
31.12.2012
31.12.2011*
31.12.2011**
Translation differences
Reclassified to profit and loss
Other
(9)
33
-
Sub-total
(9)
33
-
Re-measurement of available for sale financial assets
Reclassified to profit and loss
Other
1
1,824
213
(1,009)
213
(1,066)
Sous-total
1,825
(796)
(853)
Re-measurement of derivative hedging instruments
Reclassified to profit and loss
Other
4
(14)
7
(27)
7
(27)
Sub-total
(10)
(20)
(20)
(145)
(3)
(72)
(3)
-
(26)
(31)
(17)
1,635
(889)
(893)
Re-measurement of non-current assets
Actuarial differences on defined benefit plans
Share of unrealised or deferred gains and losses on companies
accounted for using the equity method
Total
* Restated for actuarial differences arising on the application of IAS 19 (revised), the consolidation of BPE, the correction to the method of calculating the credit risk provision at
Financo and the change of presentation for group translation differences et du changement de présentation des écarts de conversion groupe. ** Reported.
NOTE 33: TAX IN RESPECT OF EACH CATEGORY OF GAINS AND LOSSES RECOGNISED
DIRECTLY TO EQUITY
31.12.2012
Gross
Tax
amount
Translation differences
Re-measurement of available
for sale financial assets
Re-measurement of derivative
hedging instruments
Re-measurement of non-current assets
Actuarial differences on defined benefit
plans
Share of unrealised or deferred gains
and losses on companies accounted
for using the equity method
Total
(9)
31.12.2011*
Net
Gross
amount
amount
Tax
31.12.2011**
Net
Gross
amount
amount
-
(9)
33
-
33
-
2,767 (942)
1,825
(1,242)
446
(796)
(1,300)
Tax
Net
amount
-
-
447 (853)
(15)
-
5
-
(10)
-
(27)
(3)
7
-
(20)
(3)
(27)
(3)
7
-
(20)
(3)
(215)
70
(145)
(73)
1
(72)
-
-
-
(26)
-
(26)
(31)
-
(31)
(17)
-
(17)
(1,344) 455 (889)
(1,347)
2,503 (868) 1,635
454 (893)
* Restated for actuarial differences arising on the application of IAS 19 (revised), the consolidation of BPE, the correction to the method of calculating the credit risk provision at
Financo and the change of presentation for group translation differences. ** Reported.
192 CRÉDIT MUTUEL
Annual Report 2012
193
FINANCIAL STATEMENTS
NOTES
4. Segment reporting
Analysis of balance sheet by geographic area
Breakdown of total assets by business line
ASSETS
31.12.2012
France
Retail
banking
Insurance
Corporate
Asset
and investment management
banking
and private
banking
Other
Total
2012
814,817
132,553
137,265
26,484 31,602 1,142,721
Total assets
71.3%
11.6%
12.0%
2.3%
2011*
815,441
116,786
140,041
34,157 26,866 1,133,291
2.8%
Elimination Consolidated
of intra-group
total
transactions
(497,505)
645,216
(528,071)
605,220
(528,071)
605,096
100%
Total assets
72.0%
10.3%
12.4%
3.0%
2011**
815,069
116,786
140,041
34,157 27,114 1,133,167
2.4%
100%
Total assets
71.9%
10.3%
12.4%
3.0%
2.4%
LIABILITIES
2012
Retail
banking
Insurance
Net banking income
General operating expenses
Gross operating profit
Cost of risk
Gains (losses) on other assets (1)
Profit before tax
Income tax expense
Consolidated net profit
Non-controlling interests
11,201
(7,831)
3,370
(1,039)
(44)
2,287
(827)
1,460
64
1,873
(507)
1,366
(1)
(47)
1,318
(533)
785
3
1,139
(333)
806
(91)
0
715
(223)
492
8
1,396
782
484
Corporate
Asset
and investment management
banking
and private
banking
Other
Elimination
of intra-group
transactions
Total
Net profit, attributable to the owners
France
Rest of
Europe
Rest of
world *
Total
2,693
5,592
16,328
4,966
2,105
1,493
8,564
1,338
7
6,405
3,318
26,344
35
1,010
9
679
1,375
3,186
0
62,463
2,423
101,911
59,577
343,216
16,640
51,958
1,589
91,190
41,215
311,578
19,329
1,365
8
5,519
3,463
23,394
75
985
1
817
2,135
3,328
1
54,308
1,598
97,526
46,813
338,301
19,405
710
549
1,857
637
690
557
1,883
664
384
(466) (1,214)
198
(830)
(33)
(90)
7
(44)
172
(964)
(50)
322
122
(642)
1
(9)
(688)
688
0
14,573
(9,663)
4,910
(1,254)
(128)
3,528
(1,311)
2,217
67
121
(633)
0
2,150
Balances with central banks
Financial liabilities at fair value through
profit or loss
Derivative hedging instruments
Amounts due to credit institutions
Amounts due to customers
Debt securities
31.12.2012
Retail
banking
Insurance
Corporate
Asset
and investment management
banking
and private
banking
31.12.2011**
France
Rest of
Europe
Rest of
world *
Total
France
Rest of
Europe
Rest of
world *
Total
0
343
0
343
0
282
0
282
31,973
3,186
14,128
245,899
118,911
219
403
6,175
30,586
604
184
46
6,690
702
3,936
32,376
3,635
26,993
277,187
123,451
30,919
4,098
17,887
231,165
118,524
348
465
7,845
25,817
555
230
43
7,115
630
488
31,497
4,606
32,847
257,612
119,567
* United States, Singapore, Morocco and Tunisia
**Restated for the consolidation of BPE and the correction to the method of calculating the credit risk provision at Financo
Analysis of income statement by geographic area
(1) Including share in net profit or loss of companies accounted for using the equity method and impairment losses on goodwill
Net banking income
General operating expenses
Gross operating profit
Cost of risk
Gains (losses) on other assets (1)
Profit before tax
Income tax expense
Consolidated net profit
Non-controlling interests
Total
* United States, Singapore, Morocco and Tunisia
**Restated for the consolidation of BPE and the correction to the method of calculating the credit risk provision at Financo
Breakdown of results by activity
2011*
Rest of
world *
100%
* Restated. ** Reported.
Net profit, attributable to the owners
Cash in hand and balances with central
banks
8,043
Financial assets at fair value through profit
or loss
60,115
Derivative hedging instruments
2,407
Available for sale financial assets
94,827
Loans and advances to credit institutions
54,884
Loans and advances to customers
313,686
Financial assets held to maturity
16,605
Investments in companies accounted
for using the equity method
598
31.12.2011**
Rest of
Europe
31.12.2012
Other
Elimination
of intra-group
transactions
Total
13,964
(9,042)
4,922
(1,665)
94
3,351
(1,124)
2,227
82
11,686
(7,409)
4,277
(1,066)
55
3,266
(1,056)
2,210
88
1,347
(494)
853
(67)
41
827
(269)
558
2
955
(303)
652
(147)
0
505
(168)
337
7
619
(438)
181
(43)
28
166
(40)
126
2
28
(1,069)
(1,041)
(342)
(30)
(1,413)
409
(1,004)
(17)
(671)
671
0
2,122
556
330
124
(987)
0
2,145
31.12.2011***
France
Rest of
Europe
Rest of
world *
Total
France
Rest of
Europe
Rest of
world *
Total
Net banking income
General operating expenses
Gross operating profit
Cost of risk
Gains (losses) on other assets **
Profit before tax
Consolidated net profit
12,381
(8,085)
4,296
(849)
(37)
3,410
2,192
2,011
(1,495)
516
(359)
(61)
96
36
181
(83)
98
(46)
(30)
22
(11)
14,573
(9,663)
4,910
(1,254)
(128)
3,528
2,217
11,780
(7,657)
4,123
(1,238)
21
2,906
1,912
1,935
(1,317)
618
(425)
31
224
175
249
(68)
181
(2)
42
221
141
13,964
(9,042)
4,922
(1,665)
94
3,351
2,227
Profit attributable to the owners
2,188
33
(71)
2,150
1,923
165
58
2,145
* United States, Singapore, Morocco and Tunisia
** Including net profit or loss of companies accounted for using the equity method and goodwill impairment
*** Restated for actuarial differences arising on the application if IAS 19 (revised), the consolidation of BPE, the correction to the method of calculating the credit risk provision at
Financo and the elimination of intra-group transactions
* Restated.
(1) Including share in net profit or loss of companies accounted for using the equity method and impairment losses on goodwill.
194 CRÉDIT MUTUEL
Annual Report 2012
195
FINANCIAL STATEMENTS
NOTES
NOTE I2 - DIVIDENDS
5. Other information
The consolidating entity intends to pay €253 million in dividends outside the Crédit Mutuel group.
NOTE I1 - FAIR VALUE
The fair values given here are
estimates based on observable
parameters as at 31 December 2012.
They are based on discounted future
cash flows estimated based on a yield
curve that takes into account the
debtor's inherent signature risk.
The financial instruments referred to
in this note are loans and
borrowings. They do not include nonmonetary instruments (equities),
trade payables, other assets, other
liabilities or accrual accounts. Non-
financial instruments are not covered
by this note.
The fair value of on-demand financial
instruments
and
customers'
regulated savings contracts is the
amount that can be demanded by the
customer, i.e. the carrying amount.
Some group entities also apply
assumptions, for example that the
market value is the carrying amount
for contracts based on variable rates
and for contracts with a residual
maturity of one year or less.
(€M)
Note that, except for financial assets
held
to
maturity,
financial
instruments recorded at amortised
cost cannot be sold or, in practice,
disposed
of
before
maturity.
Accordingly, capital gains or losses
are not recognised. However, if a
financial instrument recognised at
amortised cost were to be sold, the
disposal
proceeds
could
be
significantly different to the fair
value calculated as at 31 December.
31.12.2012
31.12.2011*
Market
Carrying
Unrealised
Market
Carrying
value
amount
gains
value
amount
or losses
Assets
Loans and receivables due from credit institutions 56,432
Loans and receivables due from customers
351,937
Held-to-maturity financial assets
17,978
Liabilities
Due to credit institutions
26,984
Due to customers
272,064
Debt securities
125,506
Subordinated debt
6,362
gains
or losses
59,577
343,216
16,640
(3,145)
8,721
1,338
44,727
341,445
19,542
46,813
338,301
19,405
(2,086)
3,144
137
26,993
277,187
123,451
6,743
9
5,123
(2,055)
381
32,641
253,648
120,681
7,893
32,847
257,612
119,567
7,362
206
3,964
(1,114)
(531)
* Restated for the correction to the method of calculating the credit risk provision at Financo
196 CRÉDIT MUTUEL
Unrealised
NOTE I3 - RELATED PARTIES
(€M)
31.12.2012
Companies
consolidated using
Actifs
Loans and advances to credit institutions
Of which ordinary accounts
Loans and advances to customers
Assets at fair value through profit and loss
Assets available for sale
Assets held to maturity
Derivative hedging instruments
Other assets
Liabilities
Due to credit institutions
Of which ordinary accounts
Derivative hedging instruments
Liabilities at fair value through profit and loss
Due to customers
Debt securities
Subordinated debt
31.12.2011
Companies
accounted
Companies
consolidated using
Companies
accounted
the proportional
for using the
method equity method
the proportional
method
for using the
equity method
268
17
0
0
0
0
0
1
0
0
0
0
0
0
0
0
159
0
0
0
0
0
0
3
0
0
0
0
0
0
0
0
0
0
0
0
3
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
Interest and similar income
Interest and similar expense
Fees and commissions (income)
Fees and commissions (charges)
Net gains (losses) on financial assets available
for sale or at fair value through profit or loss
Other income (charges)
Net banking income
General operating expenses
1
0
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
4
6
20
25
0
25
0
0
3
3
5
17
0
17
0
Financing commitments given
Guarantee commitments given
Financing commitments received
Guarantee commitments received
76
20
0
0
0
0
0
0
101
0
0
0
0
0
0
0
Annual Report 2012
197
FINANCIAL STATEMENTS
NOTES
NOTE I4 - REMUNERATION
OF CORPORATE OFFICERS
These amounts relate to overall
remuneration paid to the main
corporate officers of CNCM in
respect of their functions in the
various group entities.
In addition, members of senior
management benefited in 2012 from
the
group
retirement
and
supplementary pension schemes in
place for all employees. On the other
hand, the group’s senior executives
receive no other specific benefits.
Note that senior executives do not
receive board attendance fees in
respect of their functions at group
companies or those at other
companies carried out on behalf of
the group. Senior executives may hold
assets in or receive loans from the
group’s banks on the same conditions
that apply to all the staff.
Pursuant to the above, the total
remuneration
(including
all
benefits of any type) paid to the
group’s
senior
management
amounted to €1,618,000 in 2012.
2. SOVEREIGN EXPOSURES TO PORTUGAL, ITALY, IRELAND AND SPAIN
2.1 OTHER COUNTRIES IN RECEIPT OF AID
31.12.2012
NET EXPOSURE (€M) - BANKING AND INSURANCE
PORTUGAL
IRELAND
Assets at fair value through profit and loss
Assets available for sale
Assets held to maturity
0
66
0
0
124
0
Total
66
124
(17)
(24)
PORTUGAL
IRLANDE
Assets at fair value through profit and loss
Assets available for sale
Assets held to maturity
50
108
0
0
117
0
Total
158
117
Gain (losses) recognised to equity
(36)
(27)
Gain (losses) recognised to equity
NOTE I5 - EXPOSURE TO SOVEREIGN RISK
1. EXPOSURE TO GREEK SOVEREIGN RISK
The restructuring of Greece’s sovereign
debt implemented in March 2012
involved the exchange of existing Greek
sovereign bonds, with the following main
characteristics:
- 53.5% of the principal of existing bonds
was waived;
- 31.5% of the principal of existing bonds
was exchanged for bonds issued by the
Greek Republic with maturities of
between 11 and 30 years and with
coupons that will increase in steps from
2% to 4.3%, which are indexed to Greek
economic growth;
- 15% of the principal of existing bonds
was exchanged for 2-year securities
issued by the European Financial
Stability Facility (EFSF); and
31.12.2012
NET EXPOSURE (€M)
- GDP-linked warrants were issued by the
Greek Republic for a notional amount
equal to the face value of each new
bond issued by the Greek Republic.
Exchanges and/or sales transactions
were recorded under cost of risk, net of
amounts accruing to policyholders in the
case of the group’s insurance entities.
BANKING
INSURANCE
TOTAL
Assets at fair value through profit and loss
Assets available for sale
Assets held to maturity
0
0
0
0
0
0
0
0
0
Total
0
0
0
Net banking income
Cost of risk
Impact on profit after tax
31.12.2011
NET EXPOSURE (€M)
4
(34)
(19)
0
0
0
4
(34)
(19)
BANKING
INSURANCE
TOTAL
Assets at fair value through profit and loss
Assets available for sale
Assets held to maturity
25
180
0
0
17
3
25
197
3
Total
205
20
225
(61)
(421)
(313)
0
(67)
(47)
(61)
(488)
(359)
Net banking income
Cost of risk
Impact on profit after tax
31.12.2011
NET EXPOSURE (€M) - BANKING AND INSURANCE
2-2 ESPAGNE - ITALIE
31.12.2012
NET EXPOSURE (€M) - BANKING AND INSURANCE
SPAIN
ITALY
Assets at fair value through profit and loss
Assets available for sale
Assets held to maturity
204
66
0
39
3,502
0
Total
270
3,541
Gain (losses) recognised to equity
(31)
(272)
31.12.2011
NET EXPOSURE (€M) - BANKING AND INSURANCE
SPAIN
ITALY
Assets at fair value through profit and loss
Assets available for sale
Assets held to maturity
131
135
0
99
4,405
0
Total
266
4,504
(2)
(465)
Gain (losses) recognised to equity
198 CRÉDIT MUTUEL
Annual Report 2012
199
INDEPENDENT AUDITORS’ REPORT
INDEPENDENT AUDITORS' REPORT ON THE
CONSOLIDATED FINANCIAL STATEMENTS
Year ended 31 December 2012
MAZARS
ERNST & YOUNG ET AUTRES
To the Shareholders,
In fulfilment of the assignment entrusted to us by your General Meetings of Shareholders, we present to you our report for
the year ended 31 December 2012 on:
- the audit of the consolidated financial statements of Crédit Mutuel group, as attached to this report;
- the basis of our opinion; and
- the specific verifications required by law.
The consolidated financial statements have been prepared under the responsibility of the Board of Directors. It is our
responsibility, based on our audit, to express an opinion on these financial statements.
I - Opinion on the consolidated financial statements
We conducted our audit in accordance with auditing standards applied in France. Those standards require that we plan and
perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement.
An audit includes examining, on a sample basis or via other means of selection, the evidence supporting the amounts and
disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and the
significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We
believe that the information we have obtained provides an adequate and reasonable basis for our opinion.
In our opinion, having regard to International Financial Reporting Standards (IFRS) as adopted by the European Union, the
consolidated financial statements give a true and fair view of the group’s financial position and its assets and liabilities at
31 December 2012, and of the results of the operations of the companies and entities included in the consolidation scope for
the year then ended.
used and the identification of the relevant financial instruments.
• As explained in Note I-3 to the consolidated financial statements describing the accounting policies and methods and in Note II5a, impairment losses in respect of available-for-sale assets are recognised when there is objective evidence of a prolonged or
significant diminution in an asset’s value.
We examined the system of controls used to identify evidence of impairment, the valuation of the most material holdings and the
estimates relied upon to recognise provisions in respect of these impairment losses, where applicable.
• As explained in Note I-3 to the consolidated financial statements describing the accounting policies and methods and in Notes
II-1a, II-6a, II-7, II-8, II-18a and II-28, impairment losses and provisions are recognised to cover credit and counterparty risks
inherent to the group’s activities. We examined the system of controls used to monitor credit and counterparty risks, to assess
impairment losses, and to cover these losses by recognising specific or general provisions.
• As explained in Note I-2 to the consolidated financial statements describing consolidation methods and policies and in Notes II12, II-15 and II-30, impairment tests were performed in respect of goodwill and investments and, when applicable, impairment
losses were recognised in the year ended. We examined the conditions under which these tests were performed, the main
assumptions and parameters used, and the resulting estimates that, when applicable, led to the recognition of impairment losses.
• As explained in Notes II-12 and II-6a to the consolidated financial statements, errors were corrected in the consolidated financial
statements. The investment in Banco Popular Espanôl (BPE) is now accounted for by the equity method. Furthermore, the
method for provisioning credit risks at Financo was modified. We examined the conditions under which these changes were
recognised, the main assumptions and parameters used, and the resulting estimates. We also checked the proper restatement of
2011 comparatives and the related information provided in Notes II-12 and II-6a to the consolidated financial statements.
• As explained in Note I-3 to the consolidated financial statements describing the accounting policies and methods and in Note II18a, provisions are recognised in respect of employee benefits. We examined the methodology used to measure these
commitments, as well as the main assumptions and calculation methods used. Concerning the early application of IAS 19
(revised), we checked the proper restatement of equity at 1 January 2012 and the information regarding the impact on the 2011
accounts provided in Note I-3 to the consolidated financial statements describing the accounting policies and methods.
These assessments were made as part of our audit of the consolidated financial statements taken as a whole, and therefore
contributed to determining the opinion expressed in the first part of this report.
III – Specific verifications
We also specifically verified the information on the group contained in the Management Report. This work was performed
in accordance with French auditing standards.
We have no comment to make as to its fair presentation and its consistency with the consolidated financial statements.
Without bringing into question the opinion expressed above, we draw your attention to Note I-3 to the consolidated financial
statements describing the accounting policies and methods and to Note II-18a to the consolidated financial statements
describing the early application from 1 January 2012 of the revised version of IAS 19 and its impact on the 2012 consolidated
financial statements.
Courbevoie and Paris-La Défense, 26 April 2013
The Independent Auditors
II – Basis of our opinion
Pursuant to the provisions of Article L.823.9 of the French Commercial Code requiring that we indicate the basis for our
opinion, we draw your attention to the following elements:
MAZARS
ERNST & YOUNG ET AUTRES
Pierre Masieri
Olivier Durand
• The group uses internal models and methods for valuing certain financial instruments that are not traded on an active
market and for determining certain provisions, as described in Note I-3 to the consolidated financial statements describing
the accounting policies and methods. We examined the system of controls for these models and methods, the parameters
200 CRÉDIT MUTUEL
Annual Report 2012
201
Confédération nationale du Crédit Mutuel
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www.creditmutuel.com
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