CDN - CP S1 2013 - Groupe Crédit du Nord

Press release
August 6, 2013
First-half 2013:
Crédit du Nord Group maintained good sales and financial momentum
in a tougher economic environment
•
•
•
•
Consolidated net banking income: EUR 931 million, underlying growth* 1.1%*
Operating expenses limited to -0.3%
Cost of risk: 55bp of loan outstandings
Net income (Group share): EUR 140.3 million, negative underlying growth* 0.9%*
•
Growth in the customer base:
- Individual customers: +2.9%
- Professional customers: +1.1%
- Business customers: +0.9%
Crédit du Nord's Board of Directors met on July 26, 2013 to approve the Group's 2013 first-half financial
statements (Crédit du Nord, Courtois, Kolb, Laydernier, Nuger, Rhône-Alpes, Société Marseillaise de
Crédit, Tarneaud, brokerage Gilbert Dupont, and others).
In a difficult environment, Crédit du Nord Group continued to focus on expanding its business,
achieving growth in all of its customer bases. This growth was boosted by ongoing efforts to win
new customers, notably through word-of-mouth recommendations, and to prevent departures, as well
as contributions from the new branches, which brought the total Individual customer base above 2.1
million.
The stability of the Group's financial resources was strengthened by the +11.4% increase in
balance sheet savings, thanks to higher inflows on special savings accounts and business client
deposits. The loan-to-deposit ratio (ratio of outstanding loans to outstanding deposits) improved
significantly on the back of these strong inflows at 108% on June 30, 2013.
Despite the crisis, Crédit du Nord continued to play its role in financing the economy and
developing SMEs: its investment loan outstanding remained almost stable despite a 9.9% fall in new
loans, reflecting a slowdown in demand.
Good financial results penalised by the application of new accounting standards: At 30 June,
2013, the Crédit du Nord Group showed a -4.7% decline in consolidated NBI to EUR 931.0 million.
Gross operating income fell by -12.1% while operating income fell by -21.0% due to a +16.1% increase
in the cost of risk in the first half of 2013. Consolidated net income (Group share) fell by -21.8% to
EUR 140.3 million.
These results were particularly affected by the negative impact resulting from the first application of
IFRS13 – Fair Value Measurements to the valuation of derivative products - notably credit value
adjustments (CVA) and debit value adjustments (DVA) which gave rise to a charge against NBI of EUR
29.2 million.
* Variation restated for the impact of the application of IFRS to future commitments related to home loan savings products
(-EUR
0.7 million infor
2012,
1.0 changes
million in to
2013
before
fair value
measurement
financial
(+EUR 1.7
After
restatement
this+EUR
impact,
PEL
and tax),
CELthe
account
provisions,
andoffair
valueliabilities
measurements
of its
million in 2012, -EUR 28.2 million in 2013 before tax), and the first application of IFRS13 – Fair Value Measurements to the
financial
liabilities,
the
Group
generated
growth
in
net
banking
income
of
+1.1%
in
the
first
half
of
2013.
valuation of derivative products, notably credit value adjustments (CVA) and debit value adjustments (DVA) (-EUR 29.2
million in 2013 before tax).
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By reducing operating expenses by -0.3%, Crédit du Nord succeeded in posting GOI growth (after
restatements) of +3.5%.
The cost of risk increased by 16.1% in the first half to EUR 101.8 million, representing 55bp of total loan
outstandings, and reflecting good resilience by the Group in a difficult economic environment.
The margin on deposits increased by +1.4%, impacted by a significant fall in short-term interest rates
and underpinned by a volume effect related to sight accounts and interest-bearing savings accounts.
The margin on loans increased by +4.0%, underpinned by the recovery in margins and growth in
outstandings.
Growth in the customer base and customer sales helped to limit the decline in net fee income to -1.3%,
despite weak loan demand and weak activity among business clients.
Key financial data:
30/06/2013
Consolidated Group data
Net banking income
Operating expenses
Gross operating income
Operating income
Net income (Group share)
EUR m
Change
13/12
30/06/2012
EUR m
931.0
608.9
322.1
220.3
140.3
977.4
610.8
366.6
278.9
179.4
30/06/2013
30/06/2012
Consolidated Group data
EUR m
EUR m
Customer loans
Customer deposits
Managed customer savings
35,722.4
29,991.7
56,856.0
35,494.0
28,408.3
54,115.0
Consolidated Restated for
change
impact of
13/12
application
of IFRS(1)
-4.7%
-0.3%
-12.1%
-21.0%
-21.8%
+1.1%
-0.3%
+3.5%
-0.4%
-0.9%
Change
13/12
+0.6%
+5.6%
+5.1%
(1) restated for the impact of the application of IFRS to future commitments related to home loan savings products, the fair
value measurement of financial liabilities, and the first application of IFRS13 – Fair Value Measurements to the valuation of
derivative products, notably credit value adjustments (CVA) and debit value adjustments (DVA).
SALES ACTIVITY
Société Marseillaise de Crédit, now benefiting from access to the Group's entire product range,
confirmed its role as a major growth driver.
Société Marseillaise de Crédit saw an improvement in business and earnings in the first half of 2013.
With strong regional roots and a well-known brand, its acquisition has positioned the Crédit du Nord
Group as a key player with a large market share in the south of France. Its dynamic growth in market
share gives the Crédit du Nord Group further growth potential on all of its markets.
Crédit du Nord also continued to benefit from the ambitious network expansion plan that it initiated
in the early 2000s and which has led to the creation of more than 150 new branches in high-growth
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regions. These branches, which account for roughly 15% of new Individual and Professional customers,
contributed significantly to Crédit du Nord's sales and financial results. Their client base offers further
significant growth and sales potential.
Crédit du Nord continues to work to improve its sales efficiency and customer satisfaction
The multichannel offering was further enhanced with a broader mobile offering for Professional
customers, accessible on all devices and offering new services.
Work continued on the "Convergence" project aimed at building a joint information system with Societe
Generale. During the first half of 2013, it gave rise to mass processing of SEPA payments.
The competition survey(1) to measure customer satisfaction conducted among a representative sample
of customers in spring 2013 once again positioned Crédit du Nord as a leader in its three markets. The
results of the survey reflected the excellent quality of our customer relations, which are the
foundation of our growth model.
(1) Source: CSA survey institute, May 2013, competition survey (telephone survey).
Individual customers
The Individual customer base showed further growth with nearly 70,000 new customers year-to-date
and year-on-year growth of +2.9%. On June 30, 2013, the customer base included nearly 2.1 million
Individual customers.
Savings inflows were particularly strong in Livret A passbook accounts (+23.4%) and LDD accounts
(+25.5%) with 41,000 new Livret A accounts opened.
Life assurance assets under management showed year-on-year growth of +6.9%, particularly
attributable to the Antarius Duo and Antarius Sélection policies, whose euro-denominated funds posted
strong performances.
A decline in household demand led to a -16.1% fall in home loans and a –4.5% fall in personal loans,
while roll-over loans increased by +3.1% year-on-year.
The 54,000 personal protection and casualty insurance contracts subscribed in the first half of the year
confirmed the success of this product range, and notably the Antarius Protection, Multi-risk and Secure
Savings policies.
Professional customers
One of Crédit du Nord's key goals is to maintain its focus on developing the Professional customer
base at a brisk pace. The active customer base grew by +1.1%.
This result reflects the quality of Crédit du Nord Group's close-knit network and dedicated account
managers who deal with both the private and commercial aspects of the bank's customer relations.
More than 40% of Professional customers signed up as Individual customers also.
The number of products and services per customer made further improvement thanks to the success of
the "Convention Alliance" package deal, subscribed to by 58% of professional customers. The
Facilinvest contract saw further growth with nearly 12,000 contracts signed in the first half of 2013.
Year-on-year, this represents an increase of 64%.
The number of Plans d’Epargne Interentreprises (inter-company savings plans) created for small
businesses, individual entrepreneurs and independent professionals posted yet another significant
increase of +9% year-on-year.
Business customers
The active Business customer base grew by +0.9%, with more than one in three new customer
relationships with companies generating revenue above EUR 7.5 million.
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Crédit du Nord played its role in financing the economy and helping SMEs to expand, and amid the
ongoing economic crisis, total investment loan outstandings remained almost stable despite a 9.9% fall
in new loans, reflecting a slowdown in demand.
Crédit du Nord broadened the processing of SEPA transfers and transmissions to help companies
prepare for the migration to new payment methods.
***
In a difficult environment, Crédit du Nord Group continued to focus on expanding its business,
achieving growth in all of its customer bases.
Although the second part of the year is set to show further difficulty, Crédit du Nord will
continue to develop its growth drivers by broadening its personal protection range and
expanding its private banking activity. It will also continue to enhance its multichannel offering,
giving clients a broad range of mobile and tablet-based offerings.
Finally, Crédit du Nord will continue to upgrade its information system. The “Convergence”
project launched in 2010 to create a joint information system for the Societe Generale Group’s
retail banks will help to further improve sales momentum and expand the range of products
available to customers. Over the long term, this investment will bring greater operational
efficiency.
Click on the link to see where Crédit du Nord Group's eight regional banks are located: www.groupecredit-du-nord.com
About Crédit du Nord Group:
Crédit du Nord Group was established through the grouping of some 80 regional banks that have been pooling their respective
strengths and talents for over 160 years now. Today the Group comprises eight banks, Courtois, Kolb, Laydernier, Nuger, RhôneAlpes, Société Marseillaise de Crédit, Tarneaud and Crédit du Nord, and one brokerage firm, Gilbert Dupont.
The Group’s 10,000 employees and network of 916 branches serve 2.1 million Individual customers, 217,700 Professional
customers, and 46,800 Business customers.
Crédit du Nord Group's entities enjoy a large degree of freedom in the management of their activities, ensuring rapid decisionmaking and exemplary responsiveness to their customers' needs.
The strategy of the Group’s banks is based around three core aims:
- to be a reference bank in terms of the quality of their customer relationships;
- to develop a high degree of individual and collective professionalism;
- to offer customers state-of-the-art services and technologies.
The quality and stability of Crédit du Nord Group’s results are widely recognised by the markets, as confirmed by its long-term A
rating from Standard & Poor’s and Fitch.
Crédit du Nord is a wholly-owned subsidiary of Societe Generale.
Press contacts:
Sylvie Aussavis
Crédit du Nord Group
Head of Press Relations
Tel.: +33 (0)1 40 22 53 21
[email protected]
Eric L’Hôte
Crédit du Nord Group
Head of Communication
Tel: +33 (0)1 40 22 27 53
[email protected]
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