annual report 2015

Transcription

annual report 2015

ANNUAL REPORT 2015
Since 18 January 2016, all of Crédit Agricole group's Wealth Management
businesses and entities around the world have been united under a single brand:
Indosuez Wealth Management. Crédit Foncier de Monaco, whose primary activity
is Wealth Management, has changed its legal name to CFM Indosuez Wealth.
CONTENT
02
A universal banking Group
INDOSUEZ WEALTH MANAGEMENT
06
Message from the General Management
0 8
Our 140-year history and key figures
10 Our business locations and expertise
12 Economic and financial environment
ACTIVITY REPORT
CFM INDOSUEZ WEALTH MANAGEMENT
14
The environment in Monaco
18
Message from the Managing Directors
20 Management bodies
21 Key figures
23 The bank's activities and results
MANAGEMENT REPORT
CFM INDOSUEZ WEALTH MANAGEMENT
28
Balance sheet as at 31 December 2015
31
Income statement for the year 2015
32
Notes
42
Company financial results
44
Statutory auditors' general report
46Resolutions
48
Business locations
01
A UNIVERSAL
BANKING GROUP
The Crédit Agricole Group is the leading partner of the French economy
and one of the largest banking groups in Europe. It is the leading retail bank
in Europe as well as the first European asset manager, the first bancassurer
in Europe and the third European player in project finance.
Built on its strong cooperative and mutual roots, its 140,000 employees
and the 31,150 directors of its Local and Regional Banks, the Crédit Agricole Group
is a responsible and responsive bank serving 52 million customers, 8.8 million
mutual shareholders and 1 million individual shareholders.
Thanks to its universal customer-focused retail banking model – based
on the cooperation between its retail banks and their related business lines –,
the Crédit Agricole Group supports its customers’ projects in France
and around the world: day-to-day banking, home loans, consumer finance,
savings, insurances, asset management, real estate, leasing and factoring,
and corporate and investment banking.
Crédit Agricole also stands out for its dynamic, innovative corporate social
responsibility policy, for the benefit of the economy. This policy is based
on a pragmatic approach which permeates across the Group and engages
each employee.
CRÉDIT AGRICOLE GROUP
€€6.0bn
net income Group share
€92.9bn
shareholders’ equity
13.7%
Common Equity Tier 1
ratio fully loaded
CRÉDIT AGRICOLE SA
€3.5bn
net income Group share
02
€53.8bn
shareholders’ equity
2015 Annual Report l CFM IND OSUEZ WEALTH MANAGEMENT
10.7%
Common Equity Tier 1
ratio fully loaded
THE GROUP’S ORGANISATION
8.8 million mutual shareholders underpin Crédit Agricole’s cooperative organisational structure.
They own the capital of the 2,476 Local Banks in the form of mutual shares and they
designate their representatives each year. 31,150 directors carry their expectations.
The Local Banks own the majority of the 39 Regional Banks’ share capital.
The Regional Banks are cooperative Regional Banks that offer their customers
a comprehensive range of products and services. The discussion body
for the Regional Banks is the Fédération Nationale du Crédit Agricole,
where the Group’s main orientations are debated.
The Regional Banks together own, via SAS Rue La Boétie, the majority of the share
capital of Crédit Agricole S.A. (56.7%). Crédit Agricole S.A. coordinates in relation with
its specialist subsidiaries the various business lines’ strategies in France and abroad.
THE UNIVERSAL CUSTOMER-FOCUSED BANK
THE RETAIL BANK
THE SPECIALISED BUSINESS LINES
CRÉDIT AGRICOLE
CARDS & PAYMENTS
Other specialised subsidiaries:
Crédit Agricole Capital
Investissement & Finance
(Idia, Sodica), Uni-éditions
CRÉDIT AGRICOLE
ASSURANCES
Savings, Life, death
and disability, borrower
and property/casualty
insurance
39 REGIONAL
BANKS OF
CRÉDIT AGRICOLE
PAYMENT
SYSTEMS
AMUNDI
Asset management
SAVINGS, INSURANCES
AND REAL ESTATE
52
RETAIL BANKS
IN FRANCE
CRÉDIT AGRICOLE
IMMOBILIER
Global real-estate
operator
million customers
CRÉDIT AGRICOLE
CIB
INDIVIDUALS - FARMERS
SMALL BUSINESSES - LOCAL AUTHORITIES
INSTITUTIONALS - CORPORATES
Corporate and
investment bank
LCL
CORPORATE
CLIENTS
CACEIS
Securities and
investor services
INTERNATIONAL
RETAIL BANKS
GRUPPO CARIPARMA CRÉDIT AGRICOLE
CA BANK POLSKA - CA EGYPT
CRÉDIT DU MAROC - CA UKRAINE
CA SRBIJA
SPECIALISED FINANCIAL
SERVICES
CA INDOSUEZ WEALTH
MANAGEMENT
Wealth management
CRÉDIT AGRICOLE
CONSUMER FINANCE
Consumer finance
CRÉDIT AGRICOLE
LEASING & FACTORING
Lease financing and factoring
1st
1st
1st
leading financial partner
of the French economy
bancassurer
in Europe
European
asset manager
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ACTIVITY REPORT
MANAGEMENT REPORT
For 140 years we have advised entrepreneurs
and families all over the world, supporting them with expert
financial advice and exceptional personal service.
Today, we work alongside our clients to help them build,
protect, and pass on their wealth.
As Architects of Wealth we offer expert advice
and exceptional service to define efficient wealth structures
and best-in-class investment solutions.
By doing so, we make it possible for our clients to
dedicate themselves to achieving their personal goals,
while relying on the flawless execution of our traditional
Wealth Management and precision banking services.
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05
ACTIVITY REPORT
MANAGEMENT REPORT
MESSAGE
FROM THE MANAGING DIRECTORS
“A culture founded on our varied international roots,
our expertise, and the strength of our shareholder.”
Jean-Yves Hocher, Deputy Managing Director of Crédit Agricole S.A.,
supervising the Major Clients business line, CEO of Crédit Agricole CIB
and Chairman of CA Indosuez Wealth (Group),
Christophe Gancel, CEO of CA Indosuez Wealth (Group)
06
2
015 shall be remembered as the defining
moment in the transformation initiated by
Indosuez Wealth Management Group in 2012,
with the adoption of a single brand for all of
its activities in Europe, the Middle East, AsiaPacific, and the Americas.
This transformation was inspired by profound changes in
our clients’ goals. For personal or professional reasons,
they are becoming more international, with increasingly
clear requirements, and their wealth, which often comes
from entrepreneurial ventures, requires new forms of
expertise.
We have strengthened our position in our historical
markets and furthered our development in the world’s
highest-growth regions for wealth management by
capitalising on our structure, which is organised around
seven geographic regions.
Our skills have been reorganised, while our best practices
and resources have been pooled to offer our products
and services worldwide.
Our development strategy is now backed by a network
that is capable of serving our clients, wherever they
are and wherever they go. The strategy relies on an
exclusive array of services showcasing the various forms
of expertise we have gained over our 140-year history,
along with the capabilities of Crédit Agricole, one of the
top banking groups in Europe.
This naturally includes services that handle all of the
issues that specifically affect entrepreneurs.
In 2015, in an environment of profound structural,
regulatory and financial changes characterised by major
challenges, a market with unprecendently low interest
rates, abundant liquidity, and high volatility, our choices
have proven their worth.
Indeed, Indosuez Wealth Management maintained its
momentum in France and abroad, with assets under
management rising by €8bn to €109.6bn at end-2015.
This demonstrates the merits of our organisational
structure, the quality of our products and services,
and the talents of our experts. These assets appeal
to exacting clients who often have assets in several
countries and are seeking added value as well as
excellent service.
Our net banking income (NBI) totalled €768.9 million, a
10% increase over the previous year. Despite low interest
rates that negatively impacted our margins, our gross
operating income (GOI) rose by 20% to €173.2m.
Against this backdrop, we can be proud of the progress
we have made and can look to the future calmly and
with confidence.
We a re t h u s u n i q u e l y w e l l p l a c e d t o m e e t t h e
challenges facing our business. Our strenghts are
now represented by our powerful single brand, across
all markets.
It is a brand that evokes our history and our place within
the Crédit Agricole group, a leader in a broad range of
activities.
It reflects the pooling of all our expertise.
It is closely associated with our meticulously built
international network, our expertise, and our high addedvalue range of products and services.
It describes our bank, which operates on a human scale,
and guarantees a deeply relationship-focussed culture
aligned with Crédit Agricole’s values
Christophe Gancel
Jean-Yves Hocher
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ACTIVITY REPORT
MANAGEMENT REPORT
Our 140-year history
1875
1959
Founding of Banque
de l’Indochine
Founding of Banque de Suez
after the nationalisation
of the Suez Canal
1966
Creation of Banque de
Suez et de l’Union des Mines
1975
Creation
of Banque Indosuez
1996
Banque Indosuez joins
Crédit Agricole Group
2011
Founding of the Crédit Agricole
Private Banking holding company
2016
All Wealth Management activities
are brought together under
the Indosuez Wealth Management brand
CFM Indosuez Wealth Management
in Monaco
08
Our key figures
ASSETS UNDER MANAGEMENT
Highly positive trend for inflows.
93,300
101,600
2013
2014
109,600
2015
(€M)
NBI
GOI
NBI ( €M) up by 10%.
GOI up by 20% to €173.2M.
696.2
2014
173.2
768.9
143.6
2015
2014
2015
GEOGRAPHIC VISION
BY COUNTRY OF RESIDENCE
ASSET
ALLOCATION
Solid regional diversification
assisted by multiple
growth drivers.
Diversified asset allocation, which results
from our goal of protecting and growing
our clients’ assets in an uncertain financial
and economic environment.
8%
Americas
47%
Europe (including
Switzerland
and Monaco)
9%
Asia Pacific
11%
Middle East, Africa
25%
France
16%
Life insurance
3%
Structured products
17%
Bonds
4% Other
(including private equity)
23%
Cash assets
22%
Fund units
15%
Equity
EMPLOYEES
2,700 employees with multiple areas of expertise
in 30 offices located in 14 countries around the world.
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ACTIVITY REPORT
MANAGEMENT REPORT
Our 30 business locations in 14 countries
EUROPE
Anvers
Bilbao
Bordeaux
Brussels
Geneva
Liège
Lille
Lugano
Luxembourg
Lyon
10
Madrid
Marseille
Milan
Monaco
Nantes
Paris
San Sebastián
Toulouse
Valencia
Zurich
AMERICAS
PACIFIC
Miami
Montevideo
Rio de Janeiro
São Paulo
Noumea
MIDDLE EAST
ASIA
Hong Kong
Singapore
Abu Dhabi
Beirut
Dubai
Our expertise
Indosuez Wealth Management’s products and services
are now presented in a simple and structured way, based
on five mutually supportive key attributes that illustrate
our added value around the world.
Solidity, Heritage, and local roots illustrates our
corporate dimension, which combines the stability of
Crédit Agricole group with Indosuez’s experience around
the world dating back over more than a century.
A human dimension creates added value.
The work performed by our teams on a day to day basis
aims to provide our clients with an exceptional bespoke
service. The bonds that we form with them are based
on mutual trust.
Our core products and services:
Structuring wealth covers all our services and advisory
businesses from a wealth strategy and structuring
standpoint. Specific analysis of each client’s overall
situation, and of their constraints and aspirations,
enables us to design tailor-made wealth management
recommendations. The Corporate Finance business
specifically helps entrepreneurs deploy their strategy.
Investing wealth promotes a range of high added-value
international investment solutions.
Our financial instruments are selected from our eight
product lines (Discretionary Portfolio Management,
Advisory, Direct Access, Investment Funds, Structured
Products, Forex and Precious Metals, Private Equity, Real
Estate and Insurance).
Our business ethics are as strong and conservative as
our history, and our advice is steeped in that tradition.
Banking and beyond represents all the other services
we offer our clients. These other services cover four main
areas: precision banking services, credit solutions,
special access to the Crédit Agricole group’s full range
of expertise, and Wealth & Beyond events, where we
share insights beyond the strict boundaries of traditional
wealth management services.
All these circles complement one another and give
meaning to our motto: Architects of Wealth.
1
2
STRUCTURING
WEALTH
INVESTING
WEALTH
3
BANKING
AND BEYOND
1
Solidity, heritage and local roots
are our foundations
2
A human dimension that
is the source of our added value
3
Our Wealth Management expertise
in all its forms
The 3 circles grouping our products
and services:
• Structuring Wealth
• Investing Wealth
• Banking and Beyond
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ACTIVITY REPORT
MANAGEMENT REPORT
ECONOMIC
AND FINANCIAL
ENVIRONMENT
By Paul Wetterwald, Chief Economist
A
ll in all, 2015 was a year of positive global
growth and low inflation, despite the
episodes of sharp volatility that affected the
financial markets in the closing months, and
despite the strong disparities between
regions. The succession of central bank meetings that
punctuated the end of the year also provided a clear
indication of the divergence of monetary policies.
means that the Fed is unlikely to raise key rates at each
of its eight monetary policy meetings in 2016.
The beginning of December saw the Governor of the
ECB elect to take interest rates deeper into negative
territory, cutting the rate it applies to commercial bank
deposits from -0.2% to -0.3%, and to extend its bondbuying programme until March 2017.
In today’s currency wars, the dollar and the Swiss franc
came out strongest over the year, with the euro declining
from 1.21 to 1.09 against the USD and from 1.20 to 1.09
against the Swiss franc.
On the other side of the Atlantic, the Federal Reserve
embarked upon on the first cycle of monetary tightening
in the US for over 10 years on 16 December (increasing
its benchmark rate from 0.25% to 0.50%). The cycle is
expected to be moderate, both in scope and pace, which
12
Japan and China, on the other hand, will maintain an
accomodative stance, with the first continuing to pursue
an inflation target of 2%, and the second looking to
ensure a soft landing for activity with a slight decrease
in the yuan if necessary.
The diverging monetary policy trajectories is partly
explained by the performance in the different segments
of the bond market. At the bottom end of the range are
emerging bonds (impacted by the strength of the US
dollar and monetary tightening in the US) and USDdenominated high yield bonds (which are exposed to oil
prices), with peripheral euro zone bond yields faring best.
The differences in performance are impressive: -15% in
USD for emerging debt and +23% in euro for Greek debt.
Comparing the performance of bond markets and equity
markets suggests that the time has not yet come for the
“Great Rotation” that will see bond investors switch to
equities.
Although the world’s stock markets lost 3.9% (in USD)
in 2015, a number of pockets of growth could be found,
including tech stocks (the Nasdaq gained 7.1%), most
euro zone markets (with Euro Stoxx increasing 7.4% and
the FTSE MIB in Italy climbing 15.8%) and Japan (the
Nikkei gained 11%). However, this performance comes
at a price: higher volatility.
Outlook
for 2016
Our central scenario hinges on a slight
acceleration in global GDP, which
will grow by more than 3%. In the USA,
growth in 2016 is expected to reflect that of
the global economy (+0.2 percentage points).
In Europe and Japan, it should be twice as
high, i.e. 0.4 percentage points, albeit from
a lower starting point. Next year should
see India stay ahead of China, with growth
expected to reach 7.5% as against 6.5%
for its neighbour. Last but not least, Russia
and Brazil will fight to put an end to inflation.
Against this backdrop, relative economic
momentum is likely to penalise the USA
and work to the advantage of not just Japan
and the euro zone but also the emerging
countries (particularly China and India).
The magic number of 2% headline inflation
should also be within reach for the world’s
main mature economies. Energy and food
costs should lead to a rebound in inflation,
while the price of other goods and services
are expected to drive indices down.
With this in mind, we expect to see a benign
structural shift in inflation. This essentially
moderate inflation scenario should allow
central banks looking to increase their key
rates to do so with due restraint, particularly
in the USA and the United Kingdom. While
future debt market trends are more difficult
to ascertain given the gradual improvement
in yields, our scenario clearly does not
include a debt market crash. Furthermore,
yields on high-yield bonds, currently close
to 9% in USD, offer a certain level
of protection against future defaults.
Stock markets are expected to perform
well at the end of 2016: historically speaking,
when the Federal Reserve increases its key
rate gradually, i.e. not at each one of its
monetary policy (FOMC) meetings, US equity
prices improve in the year that follows the
start of the rate hiking cycle. By contrast,
if the increase is too rapid, US market
performance is negative. In more general
terms, while the current abundance of
liquidity will boost the equity markets,
this common denominator will not absolve
the investor of responsibility for making
discerning choices.
Lastly, the appreciation of the US dollar
is expected to be limited. Today’s foreign
exchange markets tend to react in
anticipation of central bank decisions
rather than when those decisions are actually
implemented, which partly explains the
appreciation of the greenback this year
whilst waiting for the Federal Reserve
to hike interest rates. As such, we do not
expect the dollar to achieve parity with
the euro and anticipate an upper limit
of around 1.15 next year.
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ACTIVITY REPORT
MANAGEMENT REPORT
THE ENVIRONMENT
IN MONACO
by Marie-Odile Joris,
Corporate Secretary
T
he fundamentals are solid, and public finances
are sound. The no debt, no structural deficit
model is the Monaco model being preserved.
2015 will be the fourth consecutive year that
has ended with a surplus budget right in line with what
the Principality has had since public accounts were
improved in 2012.
Finance and insurance, science and technology, and
administrative and support services are the largest
economic sectors. Along with the real estate industry as
a whole, they contribute to wealth generated, and together,
probably made up more than one-third of Monaco's
Gross Domestic Product (GDP) in 2015.*
With total deals coming in close to €1.8 billion, the real
estate sector is being driven by sharp increase in sales
of new properties, in particular the sale of the “Tour
Odéon” and “La Petite Afrique” residential buildings and
the luxury hotel “Le Méridien.”
The Principality has fit its economy into a Mediterranean
arch that stretches from the Italian Riviera to the Côte
d'Azur in France. Every day, thousands of professionals
come to work in Monaco, in an exchange that is profitable
for each of the countries. In addition, 120 nationalities
14
from all continents are bringing their experience and
expertise to Monaco's economy.
All of the country's energies are mobilised to preserve
economic growth, invent new sources of development,
and adapt the Monegasque model to the world's
challenges.
Major initiatives should be given a high profile among the
government's framework projects. Offshore extension, a
six-hectare eco-district at l’Anse du Portier, 60,000 m 2 of
housing over the next 10 years, and the new Princess
Grace Hospital (CHPG), construction of which should
last 10 years without affecting continuity of medical care,
illustrate the complexity of these major projects in a small
territory.
Monaco has a dozen long-term ongoing major initiatives
worth nearly one-third of the State's annual budget.
The appeal of such excellent facilities and so many cultural
and sporting events all year long make the Principality
of Monaco a preferred destination for business and
tourism. In terms of business travel, 2015 was a very
good year for the Grimaldi Forum, and 2016 also looks
very promising, with a packed events calendar.
significant issues which must be maintained in the context
of negotiations underway with the European Union.
*The GDP figures for 2015 are not yet available from the Monaco
Institute of Statistics and Economic Research (IMSEE).
Pursuant to the agreements that are compliant with the
European Union's and the OECD's international standards
on information exchange, Monaco is to sign a Protocol
for amending the "Agreement between the European
Community and the Principality of Monaco providing for
measures equivalent to those laid down in Council Directive
2003/48/EC."
The signature and entry into force of the protocol, after
ratification, will lead to a new phase: beginning in 2018,
Monaco will automatically exchange, with each of the
Member States, information collected as from 1 January
2017 on every reportable account of their respective
residents.
"The art of living – in an exceptional setting," that is what
makes the Monegasque model special. These are
15
ACTIVITY REPORT
MANAGEMENT REPORT
Annual Report
CFM INDOSUEZ
WEALTH MANAGEMENT
THE REFERENCE BANK IN MONACO
As the number-one bank employer in Monaco, CFM Indosuez Wealth
Management is the only bank on the market that can offer financial solutions to
private investors, businesses, institutions, and professionals.
Created in 1922 by some of Monaco's leading families, some of whom are still
stakeholders, CFM Indosuez Wealth Management is a 70%-owned subsidiary
of Crédit Agricole Group. This backing by one of the world's top banking
groups, paired with our deep roots in Monaco, is an essential guarantee of
strength and sustainability for our customers, shareholders, employees, and
partners.
Within the group, our Company is fully integrated in the Wealth Management
Business, Indosuez Wealth Management. Our 2700 experts in Wealth
Management, 360 of whom are at CFM Indosuez Wealth Management in
Monaco, create customised solutions for our customers in a country where we
operate or by multibooking. Together, they have a single calling: to help families
and entrepreneurs create, cultivate, protect, and pass on their wealth.
16
17
ACTIVITY REPORT
MANAGEMENT REPORT
MESSAGE FROM
THE MANAGING DIRECTORS
Gilles Martinengo,
Chief Executive Officer
2
015 was marked by two major successes for
CFM Indosuez Wealth Management.
The first success was financial, with NBI up
8% and net company profit of €47 million,
up 16.8% over one year, the highest profit the bank
has ever achieved. This performance signals the trust
our customers and shareholders have in us, and we
are thankful for it. It is the result of an effective risk
policy and good cost control. It is the reward for
intensive cooperative work by all of CFM Indosuez
Wealth Management's teams, who have kept our
customers' interests at the core of all their actions,
in all their lines of business, throughout the year.
The strength and the sharp increase in these results
are all the more remarkable because they were
achieved in an environment of zero, even negative,
rates, which prevailed in most of the major economies
18
Yves Barsalou,
Chairman
in 2015. While this climate did significantly affect the
wealth management business in general, CFM
Indosuez Wealth Management successfully grew its
customers’ assets under management by more than
5% over 2014. This growth was made possible thanks
to the performance and prudence of the experts in
our trading room, the largest in Monaco or anywhere
on the Côte d'Azur, and thanks to the successful
development of our businesses and the net inflow of
new capital.
We would especially like to thank the employees of
CFM Indosuez Wealth Management, whose
commitment and momentum have been extremely
valuable in achieving these very good results against
the current backdrop.
The second success is the transformation we
completed in 2015, with all entities in the Wealth
Management segment of Crédit Agricole Group. This
Our bank has all the advantages
to meet the challenges
it will be facing in 2016
and in the years to come.
transformation culminated with the adoption of the
global brand Indosuez Wealth Management on 18
January 2016. In Monaco, we chose the name CFM
Indosuez Wealth Management, which reflects our
lasting attachment to the Principality. Once again, we
want to express our recognition to the Monaco
Authorities for their trust in our Company and their
interest in our development.
With this new brand, our Company has opened a new
page in its history, which is still grounded in a strong
commitment to our customers, everywhere in the
world. This commitment is a very concrete contribution
to CFM Indosuez Wealth Management's performance
in 2015. It is based on the five pillars of our business:
Accessibility and responsiveness: Our roots are
local, so our advice is always market-relevant.
A spirit of partnership: While one to one customer
relationships are key, we believe we can achieve much
more by working together as a team, to guide and
advise and deliver best of breed solutions.
The excellence of balanced advice: prudence is
essential. Our advice is expert, objective and ethical
so we can design well balanced wealth architectures
to deliver long term investment excellence.
A quality-based approach: We know that a
customer's satisfaction is a source of trust and a gauge
of loyalty. That's why we support you by attaching
primary importance to the quality of our services.
Trusted to do the right thing: on the strength of
our status as one of the top five banking players in
Europe, our history has been built in tandem with that
of the entrepreneurs and families we have advised all
over the world.
These pillars form a base on which we will continue
to build and grow in 2016. Our bank's fundamentals
are solid. The bank's outlook is good. We are
confident in the future: CFM Indosuez Wealth
Management's employees know the importance and
performance that come from a strategy that effectively
puts the customer at the core of each of their actions.
They have proven it with the 2015 results. As
Monaco's number-one employer, our bank will
strengthen its teams' cooperation in 2016 to offer our
customers service focused on excellence.
Our development strategy will continue in our natural
territory in the Principality of Monaco and across
target geographic areas, suited to our positioning and
the strategy of Indosuez Wealth Management around
the world. Our bank has all the advantages to meet
the challenges it will be facing in 2016 and in the
years to come.
Gilles Martinengo
Yves Barsalou
19
ACTIVITY REPORT
MANAGEMENT REPORT
Management Bodies
at 31.12.2015
CFM INDOSUEZ
WEALTH MANAGEMENT
Honorary Chairman
Georges MAZAUD
Board Of Directors
Yves BARSALOU
Chairman
Senior Managers
Yves BARSALOU
Chairman
Michel CRESP
Director
Jean DELAMALLE
Director
Olivier DESJARDINS
Director
Christophe GANCEL
Director
Philippe GESLIN
Director
Jean-Yves HOCHER
Director
Patricia JUTHEAU-HUSSON
Director
Andrée SAMAT
Director
Jean-Marie SANDER
Director
20
Gilles MARTINENGO
Executive Committee
Gilles MARTINENGO
Ariel BARUGEL Head of Human Ressources
Yves BRACCALENTI
Head of Development
Grégoire FAURE Head of Global Wealth Management
Stéphane HERPE
Head of Markets, Marketing
and Development department
Marie-Odile JORIS
Corporate Secretary
Vincent THOMAS
Head of Finance, IT, Operations
and Organisation department
Key Figures
at 31.12.2015
SHAREHOLDERS' EQUITY
(in millions of euros)
Shareholders' Equity excl. FGBR
2015
2014
2013
315= 315
277= 277
280= 280
INCOME
( in millions of euros)
Net banking income
2015
2014
2013
244= 122
226= 113
218= 109
Gross operating profit
2015
2014
BALANCE SHEET
(in millions of euros)
Total assets
2015
2014
2013
4332= 4 332
3870= 3 870
3707= 3 707
2013
94= 47
84= 42
74= 37
Net profit
2015
2014
2013
94= 47
80= 40
70= 35
21
22
ACTIVITY REPORT
MANAGEMENT REPORT
THE BANK'S ACTIVITIES
AND RESULTS
C
FM
Indosuez
Wealth
Management's
performance in 2015 was excellent across
all business lines: first, for its main activity,
Wealth Management, but also for all of the
financial solutions provided to businesses,
institutions, and professionals. The quality of service
provided to private investors and entrepreneurs was
especially highly rated by our international clients, both
residents and non-residents of Monaco. The impact
of refocusing our activities with European Union and
OECD residents was rewarded by the steady inflow of
capital into all zones covered by our teams.
The strong performance of Wealth Management
also reflects our teams’ ability to provide genuinely
personalised investment solutions. In addition, the
effective coordination between the different entities
of Indosuez Wealth Management represents a real
medium-term competitive advantage. We witnessed
the positive effects of this during the last financial year,
particularly in the European market.
The range of investment solutions
available from Wealth Management
Throughout 2015, the teams at CFM Indosuez Wealth
Management and Indosuez Wealth Management around
the world worked on developing investment solutions that
take into account all of our clients' asset management
expectations. This approach, in which all asset classes
and all forms of investment are permitted, is directly linked
to the changes taking place in the Wealth Management
market. Our range of products and services has evolved
over the course of the year so as to fully meet the
expectations of our private clients, entrepreneurs in
particular, in terms of both risk management and the ability
to customise the solutions on offer.
For FY 2015, we prioritised three strategic areas to get
the most from difficult market conditions: opening up to
a broader investment universe, excellence in analyses
and recommendations on the various financial markets,
and accounting for the legal and entrepreneurial aspects
of the strategies deployed for our clients. By concentrating
on “real economy” assets (private equity and real estate)
for the investments they look after, our teams have been
able to offer CFM Indosuez Wealth Management clients
higher returns than many financial securities without
significantly increasing portfolio volatility. Meanwhile, our
real estate experts draw on their unrivalled knowledge of
the local markets (Monaco and Côte d'Azur) to provide
clients with customised, concrete solutions for financing
their acquisitions, a regularly updated real estate watch,
analysis of property investors’ needs, and guidance and
referral to targeted professional partners who are known
to our Bank.
However, investment solutions focused on the equity
markets have not been neglected. In a climate dominated
by historically low interest rates, the teams at CFM
Indosuez Wealth Management's trading desk, the largest
in Monaco, in partnership with Indosuez Wealth
Management's teams around the world, have chosen an
approach based on a flexible, open-ended equilibrium
among asset classes. As a result, the strategies
implemented by our discretionary management teams
were adjusted in response to the fluctuations that affected
all asset classes and the major global markets due to the
combined effect of the economic slowdown in China, the
planned rise in US rates and persistently weak
commodities. The quality and performance of these
strategies is attested to in the six funds managed by
CFM Indosuez Gestion, which cover all of the usual
themes. The research and analysis capabilities available
to the clients of CFM Indosuez Wealth Management seem
to be the main factor behind the growth in our investment
advisory business over the course of the year. The
recommendations we issued in 2015, in terms of both
stock picking and foreign exchange strategies, generated
considerable added value despite difficult market
conditions. Our expertise in identifying and following up
on investment opportunities also fed into our range of
structured products, particularly in the equity markets,
23
ACTIVITY REPORT
enabling us to capture the markets’ upside potential while
at the same time optimising the portfolios’ risk profiles.
We also focused on the legal, fiscal and entrepreneurial
challenges that are decisive in the success of the
investment strategies devised for our Bank's clientèle.
The asset-management and financial engineering
experts at CFM Indosuez Wealth Management provide
customised guidance according to each client's nationality,
residence, and legal, fiscal, and financial situation.
External management companies, monitored by a
dedicated team, receive all of the bank's appraisals and
thus optimise the quality of their advice and services.
Likewise, the rollout of Corporate Finance services
during 2015 met the needs of our entrepreneurial clients,
in addition to our dedicated services for Monegasque
companies and entrepreneurs doing business in
Monaco since 2009. Business leaders are showing an
ever-growing interest in their bank's ability to take a
holistic approach to their wealth management issues.
Bearing in mind the need for caution and responsiveness,
the priorities identified by our teams are to continue to
enhance our product and service ranges, and to
strengthen our market presence, to the benefit of every
one of our clients.
The bank's activities
CFM Indosuez Wealth Management's assets increased
by +5.1% compared to 2014, growth which was achieved
through a combination of net inflows and positive market
effects.
Cash assets remained stable at high levels, especially for
demand deposits (+24%).
Securities assets, meanwhile, gained +7% in one year,
with decidedly brisk activity on funds and equities.
Life Insurance deposits increased +12% compared with
31.12.2014.
Outstanding credit risks on the balance sheet are still in
a trend of continuous growth (+9.3%) over one year. The
main driver of this growth is the very low rate environment.
Access to the skills, expertise and worldwide network of
Crédit Agricole Group is an extremely valuable asset that
sets our Wealth Management businesses apart.
The strong performance
of Wealth Management also reflects
our teams’ ability to provide genuinely
personalised investment solutions.
In addition, the effective coordination
between the different entities of
Indosuez Wealth Management represents
a real medium-term competitive advantage.
We witnessed the positive effects of this
during the last financial year,
particularly in the European market.
24
MANAGEMENT REPORT
Annual financial
statements
The balance sheet total amounted to €4,332 million at 31 - the distribution of an interim dividend paid at end
December 2015, an increase of €462 million (+12%) over December 2014, on 2014 earnings, of €19 million,
31 December 2014.
reduced the amount allocated to retained earnings by the
same amount at the end of 2014. When the dividends
On the assets side, the amount of the bank's were actually paid out in June 2015, the balance was
investment portfolio, consisting of liquid securities, reallocated to retained earnings.
exceeded €1.3 billion at the end of 2015. This level of
outstanding securities meets the Liquidity Coverage Ratio Net income for CFM Indosuez rose from €40 million to €47
in the primary currencies: Euro, USD, and CHF. Customer million over the period (+€7 million). Customer liabilities in
loans climbed to €2.3 billion at the end of December, a the form of ordinary accounts rose €605 million between
gain of 9% (€190 million). Overdrawn ordinary accounts 2014 and 2015. Following the historic decline in rates in
were a large part of this increase. Outstanding loans recent months, customers have been moving away from
stayed contained around €705 million. The "loans and savings account and term deposit products, for which total
advances to credit institutions" line item stabilised around assets diminished by €252 million for the period, to €705
€578 million.
million. In an environment still defined by low rates (Euribor
and Eonia), the decline in margins on liabilities has been
On the liabilities side, equity capital stood at partially offset by ALM activity. The brisk business in
€315 million, not including €4.5 million in funds for general securities transactions and life insurance boosted this result.
banking risks. The trend in equity capital between Operating expenses were up slightly (6%) over the previous
December 2014 and 2015 (+€38 million) comes from:
period, but stayed contained at €72 million.
- the decision by the OGM approving the financial
statements for FY 2014 to retain €12 million of €40.3 In view of the foregoing, net profit stands at €47.1 million,
million in total earnings for 2014.
up 17% over FY 2014.
Allocation
of Income
Profit or loss for FY 2015
Retained earnings from the previous year
Theoretical total for distribution
Dividends to shareholders
Retained earnings at the end of the period
47,109,906.17 €
149,896,991.67 €
197,006,897.84 €
32,976,150.00 €
164,030,747.84 €
On these bases, each share would receive a total dividend of €57.55, 16% more than the dividend paid for FY 2014
(€49.24 per share). This dividend would be paid out on 8 June 2016.
25
ACTIVITY REPORT
Management Report
CFM INDOSUEZ
WEALTH MANAGEMENT
26
MANAGEMENT REPORT
27
ACTIVITY REPORT
MANAGEMENT REPORT
1. Balance sheet at 31 December 2015
ASSETS
(in € ‘000s)
Notes
Inter-bank and similar transactions
Cash and amounts due from Central Banks
31.12.2014
622,014
621,713
43,563
44,058
Receivables from Credit Institutions
3
578,451
577,655
Transactions with Customers
4
2,267,731
2,077,375
1,337,479
1,071,996
Securities transactions
Bonds and other fixed-income securities
5
1,325,137
1,059,617
Equities and other variable-income securities
6
12,342
12,379
31,912
33,824
Fixed assets
Equity investments and other long-term securities
7
652
652
Investments in related companies
8
506
506
Intangible assets
9
17,889
17,831
Tangible assets
9
12,865
14,835
72,891
65,369
Accrual accounts and miscellaneous assets
Other assets
13
20,271
20,074
Accrual accounts
13
52,620
45,295
4,332,027
3,870,277
TOTAL ASSETS
28
31.12.2015
LIABILITIES (in € ‘000s)
Notes
Bank transactions and similar
31.12.2015
31.12.2014
126,480
74,682
Payables to Credit Institutions
10
126,480
74,682
Customer Payables
11
3,813,337
3,447,637
67,530
61,411
Accrual accounts and miscellaneous liabilities
Other liabilities
14
21,976
22,453
Accrual accounts
14
45,554
38,958
Provisions
15
5,202
5,154
Funds set aside for general banking risks
16
4,471
4,471
315,007
276,922
34,953
34,953
311
311
82,736
82,736
149,897
118,612
47,110
40,310
4,332,027
3,870,277
Shareholders’ equity excluding FGBR
Subscribed share capital
Issue Premiums
Reserves
Retained earnings
Net income for the year
TOTAL LIABILITIES
17
29
ACTIVITY REPORT
MANAGEMENT REPORT
OFF-BALANCE-SHEET ITEMS
(in € ‘000s)
Notes
31.12.2015
31.12.2014
Commitments given
Financing commitments
20
645,082
482,383
Guarantee commitments
20
278,482
234,793
20
1,723,726
1,532,092
Commitments relating to securities
Commitments received
Financing commitments
Guarantee commitments
Commitments relating to securities
30
2. Income statement for 2015
INCOME STATEMENT
(in € ‘000s)
Notes
Net interest and similar income
31.12.2015
31.12.2014
44,948
48,897
Interest and similar income
21
51,742
59,311
Interest and similar expense
21
-6,794
-10,414
Income from variable-income securities
22
50
139
Net commissions
66,354
58,173
Commission income
23
70,727
62,597
Commission expense
23
-4,373
-4,424
Net income from financial transactions
15,648
11,001
Gains or losses on trading portfolio transactions
24
15,457
9,688
Gains or losses on investment and similar portfolio transactions
25
191
1,313
-4,632
-5,096
Other net banking operating income
Other banking operating income
26
3,184
2,643
Other banking operating expense
26
-7,816
-7,739
122,368
113,114
NET BANKING INCOME
General operating expenses
27
-72,028
-68,184
Additions to amortisation and depreciation and impairment of intangible
9
-3,263
-3,168
47,077
41,762
34
-1,452
47,111
40,310
-1
0
47,110
40,310
and tangible assets
GROSS OPERATING INCOME
Cost of risk
28
OPERATING INCOME
Net income from fixed assets
CURRENT INCOME BEFORE TAX
Non-recurring income
NET INCOME FOR THE FINANCIAL YEAR
29
0
0
47,110
40,310
31
ACTIVITY REPORT
MANAGEMENT REPORT
3. Notes
■
Note 1
ACCOUNTING PRINCIPLES AND
POLICIES APPLIED
1.1. Introduction
CFM Indosuez Wealth Management's financial statements
are prepared in compliance with the regulations that apply
to credit institutions in the Principality of Monaco, within
the framework of the agreements between France and
Monaco.
Forward interest-rate financial instruments
These are primarily back-to-back contracts that form
part of the asset and liability management process.
The expenses and income relating to these transactions
are entered on the income statement on a pro rata basis.
■
Interest-rate options
Interest-rate options are back-to-back transactions
entered into on the over-the-counter market.
■
Securities
1.2. Accounting principles and policies
Trading securities
Trading securities are securities purchased on an
organised market that is sufficiently liquid, with a view to
reselling them within a maximum timeframe of six months
from the outset.
Translation of assets and liabilities denominated
in foreign currencies
Trading securities are valued at their market value. The
capital gains or losses generated are recorded under
income or expense for the financial year.
Assets and liabilities denominated in foreign currencies
are translated at the market exchange rates at the balance
sheet date.
The income and expenses resulting from these translations,
together with the translation differences generated on
transactions during the financial year are recognised in
the income statement.
■
Investment securities
Investment securities are financial investments purchased
in order to provide a financial return.
■
A provision is recorded where their market value is lower
than their book value.
Equity investments
The recording of impairment provisions on equity
investments is assessed on an individual basis, taking
account of their value-in-use and of the economic and
financial appraisal of each company concerned.
■
Forex-exchange transactions
Spot and forward foreign-exchange contracts
Spot foreign-exchange contracts are valued at the spot
market rate for the currency in question at each balance
sheet date.
■
Forward currency transactions are back-to-back
transactions, and the rate used is the spot rate for the
currency in question.
Currency options
Currency options are back-to-back transactions entered
into on the over-the-counter market.
■
32
Fixed assets
Tangible assets are entered at their historical cost and in
accordance with the component method; repairs,
maintenance and small items are posted as a debit in the
year’s expenses account.
Intangible assets include the business assets purchased,
software, and lease rights, and are shown on the balance
sheet at their historical cost.
The business assets purchased and lease rights are not
amortised, and are subject to an impairment test.
The depreciation and amortisation charges for other fixed
assets are calculated on a straight-line basis.
■
The depreciation and amortisation
calculation periods selected
are as follows:
EQUIVALENT VALUE OF ASSETS AND
LIABILITIES IN FOREIGN CURRENCIES
(in € ‘000s)
COMPONENT DEPRECIATION AND
AMORTISATION PERIOD
Buildings
50 years
Fixtures & fittings
6 to 10 years
Furniture & equipment
5 to 10 years
Transportation equipment
5 years
IT equipment
3 years
Software and other intangible
assets
Note 2
31.12.2015
31.12.2014
Total assets in foreign currencies
1,573,074
914,868
Total liabilities in foreign currencies
1,571,053
1,436,292
■
Note 3
RECEIVABLES AGAINST CREDIT
INSTITUTIONS
1 to 3 years
(in € ‘000s)
31.12.2015
31.12.2014
69,752
79,119
Accounts and loans
demand
Provisions for customer-related risk
overnight
Provisions for customer-related risk are recorded in
accordance with the risk of loss as soon as those risks
are known; these provisions are deducted from the asset,
where they relate to impaired receivables. They are
recorded under liabilities in other cases.
related receivables
term
Total credit institution accounts
0
0
508,318
497,459
381
1,077
578,451
577,655
Provisions
Net credit institution accounts
0
578,451
577,655
31.12.2015
31.12.2014
2,274,480
2,084,001
2,199
3,002
2,276,679
2,087,003
-8,948
-9,628
2,267,731
2,077,375
Retirement benefits
The retirement benefits payable in connection with the
various mandatory pension schemes to which employers
and employees contribute are managed by specialised
external organisations. The contributions payable for the
financial year are recognised under the income for the
period.
The Bank raised the provision for retirement benefits to
€2.661 million in 2015.
■
Note 4
CUSTOMER RECEIVABLES
(in € ‘000s)
Principal receivable amounts
Related receivables
Other employee commitments
The bonuses for long-service awards paid to employees
are included in personnel expenses.
The provision corresponding to the entitlements earned
by staff in connection with these bonuses amounted to
€1,141,000 at the end of the financial year.
Total customer receivables
Provisions
Net book value
■
Note 5
BONDS AND OTHER FIXED-INCOME SECURITIES
(in € ‘000s)
31.12.2015
31.12.2014
1,317,247
1,058,206
8,736
1,990
Sub-total
1,325,983
1,060,196
Provisions
-846
-579
1,325,137
1,059,617
Negotiable debt securities
Related receivables
Net book value
33
■
ACTIVITY REPORT
Note 6
■
EQUITIES AND OTHER VARIABLE-INCOMESECURITIES
(in € ‘000s)
31.12.2014
5
5
Accumulation UCITS
12,346
12,377
Sub-total
12,351
12,382
Provisions
-9
-4
12,342
12,379
Net book value
■
Note 7
EQUITY INVESTMENTS AND OTHER SECURITIES HELD ON A LONG-TERM BASIS
(in € ‘000s)
31.12.2015
31.12.2014
29
29
Other securities
628
628
Sub-total
657
657
Provisions
-5
-5
652
652
Investments in credit institutions
Net book value
Note 9
FIXED ASSETS
31.12.2015
Investment securities and shares
MANAGEMENT REPORT
(in € ‘000s)
Gross value at 1 January 2015
Net change during the financial year
Intangible
items
Tangible
items
33,287
45,922
188
518
Gross value
at 31 December 2015
33,475
46,440
Aggregate depreciation at the
financial year-end
15,586
33,575
Net value at 31 December 2015
17,889
12,865
381
2 882
Depreciation charge for the 2015
financial year
The business assets purchased have not been depreciated,
although they are subject to impairment tests. No
impairment was recorded at the end of 2015. Start-up
costs were fully amortised at the financial year-end.
■
Note 10
PAYABLES TO CREDIT INSTITUTIONS
■
(in € ‘000s)
Note 8
Ordinary accounts payable
Term accounts
INVESTMENTS IN RELATED COMPANIES
(in € ‘000s)
Related liabilities
31.12.2015
31.12.2014
Other securities
506
506
Sub-total
506
506
506
506
Investments in credit institutions
Provisions
Net book value
The Bank owns almost 100% of the share capital of CFM
Indosuez Gestion, a Monaco Limited Company with share
capital of €150,000, as well as a majority interest in
Lederlex SA. Furthermore, the Bank owns 100% of the
share capital of CFM Indosuez Conseil en Investissement,
a French single-manager simplified joint stock company
with share capital of €150,000.
34
Total payable to credit
institutions
31.12.2015
31.12.2014
8,622
27,412
117,857
47,270
1
0
126,480
74,682
■
Note 11
■
CUSTOMER PAYABLES
(in € ‘000s)
OTHER ASSETS AND ACCRUAL ACCOUNTS
31.12.2015
31.12.2014
212,756
310,159
3,090,911
2,485,652
Term accounts
491,744
646,535
Other accounts
17,579
4,533
347
758
3,813,337
3,447,637
Special scheme savings accounts
Demand accounts
Related liabilities
Net balance sheet value
Note 13
(in € ‘000s)
31.12.2015
31.12.2014
438
411
2,508
2,432
13,538
14,294
3,740
2,789
47
147
20,271
20,074
Other assets
Miscellaneous receivables
Options purchased
Securities settlement accounts
Guarantee deposits
Other
Accrual accounts
■
Note 12
Payment accounts
RECEIVABLES AND RELATED LIABILITIES
(in € ‘000s)
31.12.2015
31.12.2014
Interest accrued, not yet
received (assets)
Receivables against credit
institutions
381
1,077
Customer receivables
2,199
3,002
Bonds and other fixed-income
securities
8,736
1,990
Total interest included under
assets
11,316
6,069
Interest accrued, not yet paid
(liabilities)
Payable to credit institutions
352
90
Foreign currency adjustments
20,747
17,068
Income receivable
26,105
23,704
Prepaid expenses
1,227
1,332
Other
4,189
3,101
52,620
45,295
TOTAL
72,891
65,369
■
Note 14
OTHER LIABILITIES AND ACCRUAL
ACCOUNTS
(in € ‘000s)
1
0
Customer payables
347
758
Total interest included under
liabilities
348
758
31.12.2015
31.12.2014
12,808
12,441
Options sold
2,508
2,432
Miscellaneous payables
6,660
7,548
Securities settlement accounts
0
32
Other
0
0
21,976
22,453
Currency adjustments
0
0
Prepaid income
1
4
39,364
35,683
Other liabilities
Guarantee deposits
Accrual accounts
Expenses payable
Other accrual accounts
6,189
3,270
45,554
38,958
TOTAL
67,530
61,411
35
■
ACTIVITY REPORT
MANAGEMENT REPORT
Note 15
PROVISIONS
Balance at
31.12.2014
Additions
Reversals
Translation
differences
9,628
672
1,390
38
579
855
579
(in € ‘000s)
Other
changes
Balance at
31.12.2015
Provision deducted from assets
Financial investments
8,948
855
5
Other assets
5
34
TOTAL
10,246
34
1,527
2,003
0
38
0
9,808
Provisions classified
Under balance sheet liabilities
Customer-related risks
367
Employee commitments
3,820
Other allocated provisions
1,407
1,215
967
TOTAL
■
367
5,154
1,407
4,012
161
17
1,376
17
823
0
5,202
Note 16
FUNDS SET ASIDE FOR GENERAL BANKING RISKS
(in € ‘000s)
31.12.2015
31.12.2014
Fund set aside for general banking risks
4,471
4,471
Balance sheet value
4,471
4,471
This amount covers the Bank’s general risks on an interchangeable basis. The funds set aside for general
banking risks are considered as shareholders’ equity under the terms of current banking regulations.
■
Note 17
CHANGE IN SHAREHOLDERS’ EQUITY (BEFORE APPROPRIATION OF EARNINGS AND EXCLUDING FGBR)
(in € ‘000s)
Share Premiums &
Capital
reserves
Balance at 31.12.2013
34,953
83,047
Revaluation
differences
Retained
earnings
Regulated
provisions
Net income
Total
shareholder's
equity
0
127,206
0
35,177
280,383
-19,190
-24,581
-43,771
10,596
-10,596
0
40,310
40,310
40,310
276,922
Increase or decrease
0
Dividends paid in 2014
Appropriation of the 2013 earnings
Net income for the 2014 financial year
34,953
83,047
0
118,612
0
Increase or decrease
0
Interim dividends paid in 2015
-9,025
Appropriation of the 2014 earnings
31,285
Net income for the 2015 financial year
36
34,953
83,047
0
149,897
0
-9,025
-31,285
0
47,110
47,110
47,110
315,007
■
Note 18
BREAKDOWN OF RECEIVABLES AND PAYABLES ACCORDING TO THEIR RESIDUAL MATURITY
(in € ‘000s)
≤ 3 months
> 3 months
≤ 1 year
> 1 year
≤ 5 years
> 5 years
Total
Excluding receivables & related liabilities
Receivables against credit institutions
578,070
243,070
335,000
2,255,073
17,797
1,610
2,274,480
Receivables represented by a security
251,988
740,064
325,195
1,317,247
Payable to credit institutions
126,479
Customer payables
■
3,745,781
126,479
61,038
3,812,990
6,171
Note 19
COMMITMENTS ON FORWARD FINANCIAL INSTRUMENTS:
(in € ‘000s)
31.12.15
≤ 1 year
1 to 5 years
> 5 years
Total
1,436,490
1,322,239
672,291
3,431,020
334,846
915,134
613,745
1,863,725
Other hedging transactions
1,101,644
407,105
58,546
1,567,295
Forward currency transactions:
2,593,542
317,528
0
2,911,070
Euros receivable against foreign currencies payable
1,156,743
151,814
1,308,557
Foreign currencies receivable against euros payable
1,436,799
165,714
1,602,513
Options purchased
411,547
10,331
421,878
Options sold
411,547
10,331
421,878
Forward transactions
Interest-rate swaps:
Global interest-rate management
Option transactions
The amounts shown correspond to total lending and borrowing positions (rate swaps and rate swap options), or to
total contract purchases and sales (other contracts).
■
Note 20
OFF-BALANCE-SHEET ITEMS
(in € ‘000s)
31.12.2015
31.12.2014
Commitments given
923,564
717,176
• Financing commitments:
645,082
482,383
To clients
645,082
482,383
• Guarantee commitments:
278,482
234,793
To credit institutions
15,004
0
263,478
234,793
Commitments receiveds
1,723,726
1,532,092
• Guarantee commitments:
1,723,726
1,532,092
64,854
59,895
1,658,872
1,472,197
To clients
From credit institutions
From clients
37
■
ACTIVITY REPORT
MANAGEMENT REPORT
Note 21
NET INTEREST AND SIMILAR INCOME FROM TRANSACTIONS
(in € ‘000s)
31.12.2015
31.12.2014
With credit institutions
21,964
26,452
With clients
29,778
29,795
On securities
0
3,064
Interest and similar income
51,742
59,311
With credit institutions
-3,031
-5,066
With clients
-3,493
-5,348
On securities
-270
0
Interest and similar expense
-6,794
-10,414
Net interest and similar income
44,948
48,897
31.12.2015
31.12.2014
2
1
Investments and in affiliates
48
138
Total
50
139
■
Note 22
INCOME FROM VARIABLE-INCOME SECURITIES
(in € ‘000s)
Equity investments and other securities held on a long-term basis
■
Note 23
COMMISSIONS
(in € ‘000s)
31.12.15
Income
On transactions with credit institutions
Expense
31.12.14
Net
Income
Expense
Net
0
-165
-165
0
-108
-108
6,653
-1,518
5,135
6,140
-1,483
4,657
On securities transactions
53,207
-2,690
50,517
46,458
-2,834
43,624
Other commissions
10,867
0
10,867
9,999
0
9,999
Net commissions
70,727
-4,373
66,354
62,597
-4,425
58,172
On transactions with clients
■
Note 24
GAINS OR LOSSES ON TRADING PORTFOLIO TRANSACTIONS
(in € ‘000s)
31.12.2015
31.12.2014
5,249
6,103
On foreign currency transactions and similar financial instruments
10,208
3,585
Balance of the trading portfolio transactions
15,457
9,688
On transaction securities
38
■
Note 25
GAINS OR LOSSES ON INVESTMENT PORTFOLIO TRANSACTIONS
(in € ‘000s)
31.12.2015
31.12.2014
476
1,520
Net gains
Net changes in provisions
Net value
■
-285
-207
191
1 313
31.12.2015
31.12.2014
0
0
Note 26
OTHER BANKING OPERATING INCOME AND EXPENSES
(in € ‘000s)
Income
Share in joint ventures
Re-invoiced and reclassified expenses
Miscellaneous banking operating income
34
38
3,088
2,547
Other income
62
58
Total Income
3,184
2,643
-816
-631
Expenses
Share in joint ventures
Miscellaneous banking operating expenses
-7,000
-7,108
Total expenses
-7,816
-7,739
Net Total
-4,632
-5,096
31.12.2015
31.12.2014
31,124
30,748
1,085
871
Payroll expenses
11,313
11,105
Total personnel expenses
43,522
42,724
Administrative expenses
28,506
25,460
149
145
72,028
68,184
■
Note 27
GENERAL OPERATING EXPENSES
(in € ‘000s)
Personnel expenses
Wages and benefits
Profit-sharing
Of which Statutory Auditors’ fees
Total General Operating Expenses
39
■
ACTIVITY REPORT
MANAGEMENT REPORT
Note 28
COST OF RISK
(in € ‘000s)
Reversal of provisions for contingencies and charges
Reversal of provisions for impaired receivables
31.12.2015
31.12.2014
161
1,366
1,154
829
Recovery of amortised receivables
Miscellaneous income
Total income
0
29
2
1,344
2,198
Provisions for impaired receivables and other assets
-576
-2,117
Losses on unrecoverable receivables covered by a provision
-730
-427
Additions to provisions for contingencies and charges
Miscellaneous expenses
-60
-4
Transactional compensation
Total expenses
Total
■
-80
-965
-1,310
-3,650
34
-1,452
31.12.2015
31.12.2014
Note 29
GAINS AND LOSSES ON FIXED ASSETS
(in € ‘000s)
Gains on the disposal of intangible and tangible assets
Losses on the disposal of intangible and tangible assets
-1
Gains on the disposal of financial investments
Additions and reversals of provisions for impairment of financial investments
Total
40
-1
0
■
Note 30
AVERAGE HEADCOUNT
31.12.2015
31.12.2014
Executives
273
267
Supervisors
91
94
364
361
Staff category
Employees
Total
■
Note 31
ENCUMBERED ASSETS
CFM Indosuez Wealth monitors and manages the level of its mobilised assets. In total, the ratio of encumbered assets
was 0% at 31 December 2015. We did not identify any source of asset mobilisation meeting the criteria set by the
decree of 19 December 2014.
ACTIFS
(in € millions)
Book value of
encumbered assets
Fair value of
encumbered assets
Book value of
unencumbered assets
Fair value of
unencumbered assets
Assets of the reporting institution
0.0
0.0
4,332.0
4,397.1
Capital instruments
0.0
0.0
0,0
Debt securities
0.0
0.0
2,267.7
2,267.8
Loans and receivables other than demand loans
0.0
0.0
1 337,5
1,351.7
Other assets
0.0
0.0
726,8
777.7
31.12.2015
GUARANTEES RECEIVED
(in € millions)
31.12.2015
Fair value of the encumbered guarantee
received or the encumbered own debt
securities issued
Collateral received from the reporting institution
0.0
Fair value of the guarantee received
or the own debt securities issued available
to be encumbered
0.0
41
ACTIVITY REPORT
MANAGEMENT REPORT
COMPANY FINANCIAL RESULTS
(€ ’000s, except for per-share amounts)
31.12.2008
31.12.2009
Year-end financial position
Share capital
34,953
34,953
573,000
573,000
70,047
83,047
Net banking income
94,672
100,301
Current income
35,428
37,551
Net income for the financial year
35,428
37,551
Amount of income distributed
21,774
24,353
Current income
61.83
65.53
Net income for the financial year
61.83
65.53
Dividend paid per share
38.00
42.50
Number of shares outstanding
Reserves
Overall income from transactions performed
Income from transactions per share
Number of employees
Staff
402
407
Payroll
30,286
29,591
Amount paid in connection with employee benefits
10,056
10,200
(Social Security, and social activities, etc.)
42
31.12.2010
31.12.2011
31.12.2012
31.12.2013
31.12.2014
31.12.2015
34,953
34,953
34,953
34,953
34,953
34,953
573,000
573,000
573,000
573,000
573,000
573,000
83,047
83,047
83,047
83,047
83,047
83,047
99,163
104,582
112,023
108,625
113,114
122,368
40,203
38,672
45,362
35,177
40,310
47,110
40,203
38,672
45,362
35,177
40,310
47,110
26,129
26,129
29,487
24,582
28,214
32,976
70.16
67.49
79.17
61.39
70.35
82.22
70.16
67.49
79.17
61.39
70.35
82.22
45.60
45.60
51.46
42.90
49.24
57.55
407
379
372
370
361
364
30,311
30,394
30,061
30,987
31,619
32,209
10,498
10,652
10,131
10,835
11,105
11,313
43
ACTIVITY REPORT
MANAGEMENT REPORT
GENERAL REPORT
OF THE STATUTORY
AUDITORS
Financial year ended 31 December 2015
To the Shareholders,
I
n accordance with the provisions of Article 25 of Law No. 408 of 20 January 1945, we hereby report to you on
the general and ongoing assignment that was entrusted to us for the 2015, 2016 and 2017 financial years via
a decision of the Ordinary General Meeting of 20 May 2015.
The financial statements and company documents, approved by your Board of Directors, were provided to us within
the legal deadlines.
• The balance sheet total amounted to €4,332,027,721
• The income statement shows a net profit of €47,109,906
Our assignment, which consists in issuing an opinion on these financial statements, was performed in accordance
with professional standards, and by applying the rules relating to the audit of institutions governed by banking
regulations. This assignment required us to review the transactions performed by your company during the 2015
financial year, the balance sheet at 31 December 2015, the income statement for the financial year, and the notes
for the period ended on that date.
These documents were drawn up in accordance with legal specifications, in the same form as in the previous
financial year, and using the same methods.
We checked the various items that make up the assets and liabilities, together with the methods adopted to value
those items, and to differentiate between expenses and income. Our review was performed in accordance with
generally accepted accounting review standards, which provide that our work is planned and performed so as to
obtain reasonable assurance that the financial statements are free from material misstatement.
An accounting review includes the examination of the evidence provided for the amounts and information contained
in the financial statements via spot checks, as well as an assessment of the accounting policies used, and the main
estimates made by your directors.
In our opinion, the financial statements at 31 December 2015, as appended to this report and submitted for your
approval, present a fair view of your Company’s asset and liability position at 31 December 2015 and of the net
income for the financial year then ended, in accordance with legal specifications.
We also checked the financial information contained in your Board of Directors’ report, the proposed appropriation
of earnings, and compliance with the legal and statutory provisions governing the operation of your Company. We
have no observations to make.
Monaco, 6 April, 2016
Bettina Ragazzoni
Statutory Auditor
44
Claude Tomatis
Statutory Auditor
SPECIAL REPORT
OF THE STATUTORY
AUDITORS
Financial year ended 31 December 2015
To the Shareholders,
P
ursuant to Article 24 of Act 408 of 20 January 1945, we present you with a report on the transactions covered
in Article 23 of the Sovereign Order of 5 March 1895, carried out during FY 2015, and on the general meetings
held over the same period.
Transactions covered in Article 23 of the Sovereign Order of 5 March 1895
The provisions of this article apply to any company or transaction involving successive services of the same or a
similar nature carried out with the company or on its behalf, in which a director of the company has a direct or
indirect interest.
During the year, the following transactions were carried out:
• CFM Indosuez Wealth continued its transactions, with CA-CIB and other banks in the group, the nature and
terms of which remain those of the banking industry and the market.
• CFM Indosuez Wealth continued its transactions under the information services subcontracting (S2i) and backoffice agreement with CA Indosuez (Switzerland) SA.
• CFM Indosuez Wealth continued to provide its operational support to Lederlex S.A. (formerly C.F.M. France),
CFM Indosuez Gestion, and SASU CI-CFM.
• CFM Indosuez Wealth used the services of insurance broker Ascoma JH for the management of a portion of its
insurance policies. In addition, CFM Indosuez Wealth entered into a business procurement contract with that
company.
We have no observations to make about them.
General meetings held during the year
During the year, you met:
• on 13 May 2015 in an Ordinary General Meeting to approve the financial statements for the year ended 31
December 2014.
• on 13 May 2015 in an Extraordinary General Meeting to amend Article 1 of the by-laws, for the purpose of
changing the bank's company name.
For these general meetings, we verified:
• that they were held in compliance with the relevant legal and statutory provisions;
• and that the approved resolutions were carried out. We did not find any irregularity.
Monaco, 6 April, 2016
Bettina Ragazzoni
Statutory Auditor
Claude Tomatis
Statutory Auditor
45
ACTIVITY REPORT
MANAGEMENT REPORT
Resolutions
First Resolution
Fifth Resolution
The General Meeting, having heard the report of the Board
of Directors, the Statutory Auditors’ report and the balance
sheet and income statement for the year ended 31
December 2015, approves the financial statements for
the 2015 financial year as presented to it by the Board of
Directors.
The General Meeting approves the amount of the fees
allocated to the Statutory Auditors, as shown in the
expenses for the financial year.
It releases from their managerial obligations those
Directors who have completed their appointment during
the year.
In accordance with Article 16 of the Articles of Association,
the General Meeting reappoints Michel Cresp as a Director
for a period of one year.
Second Resolution
The General Meeting approves the distribution of the
remaining profits from FY2015, i.e. €47,109,906.17, to
which the previous year's retained ear nings of
€149,896,991.67 must be added, for a total of
€197,006,897.84, as proposed by the Board in its report
and, consequently, decides:
To distribute to the shareholders
in dividends
€32,976,150.00
As retained earnings
€164,030,747.84
This amount will be distributed to the shareholders via the
dividend payment on 8 June 2016, of €57.55, 16% higher
than the dividend paid out for FY2014.
Third Resolution
The General Meeting authorises the Board of Directors to
pay an interim dividend for the 2016 financial year on the
basis of a balance sheet that has been duly certified by
the Company’s Statutory Auditors before the end of the
financial year if the Board considers it appropriate.
Fourth Resolution
the General Meeting reappoints Yves Barsalou as a
Director for a period of one year.
Mr Barsalou’s appointment will end at the Ordinary General
Meeting called to approve the financial statements for the
2016 financial year.
46
Mr Cresp’s appointment will end at the Ordinary General
Sixth Resolution
the General Meeting reappoints Olivier Desjardins as a
Mr Desjardins’ appointment will end at the Ordinary
General Meeting called to approve the financial statements
for the 2016 financial year.
Seventh Resolution
the General Meeting reappoints Christophe Gancel as a
Mr Gancel’s appointment will end at the Ordinary General
Eighth Resolution
the General Meeting reappoints Philippe Geslin as a
Mr Geslin’s appointment will end at the Ordinary General
Ninth Resolution
In accordance with Article16 of the Articles of Association,
the General Meeting reappoints Andrée Samat as a
Ms Samat’s appointment will end at the Ordinary General
Tenth Resolution
the General Meeting reappoints Jean-Marie Sander as a
Mr Sander’s appointment will end at the Ordinary General
Eleventh Resolution
the General Meeting approves the appointment of Paul
de Leusse as a Director for a period of one year.
Mr de Leusse’s appointment will end at the Ordinary
General Meeting called to approve the financial statements
for the 2016 financial year.
Twelfth Resolution
The General Meeting, having heard the report of the Board of
Directors, and the Statutory Auditors’ report, takes note of the
information provided to it regarding the transactions referred
to in Article 23 of the Sovereign Order of 5 March 1895.
It approves these transactions and renews the
authorisation to the Directors provided for in Article 23 of
the aforementioned Order.
Thirteenth Resolution
The Ordinary General Meeting grants all powers to MarieOdile Joris or to the bearer of an original copy of the
resolutions to perform all the formalities required by the
above resolutions as soon as possible.
47
Our branches
at 31.12.2015
HEADQUARTERS
11, boulevard Albert 1 er
Tel. + 377 93 10 20 00
BR ANCHES
Albert 1 er
Gastaud
2, rue des Princes
Suffren Reymond
Monte-Carlo
31, boulevard Princesse Charlotte
Moulins
Europa Résidence
Monaco Ville
6, rue Comte Félix Gastaldi
Fontvieille
18, quai Jean-Charles Rey
48
The annual report is published in French and English.
In the case of inconsistencies between the two versions, the original French version shall prevail.
Design and production:
– +33 (0)1 55 76 11 11 – 14029
Photo credits: Jean Chiscano, Point of views, Benjamin Bechet, RR.
Illustrations by Cassandre Montoriol.
www.cfm-indosuez.mc

annual report 2015

Transcription

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