Overview 2007 - Banque Populaire Group

Transcription

BANQUE POPULAIRE GROUP
Overview / April 2007
01
Both stable and a driving force.
PROFILE & CORPORATE GOVERNANCE
VALUES AND FOUNDATIONS
PROFILE
CHAIRMAN'S MESSAGE
CORPORATE GOVERNANCE
2006 KEY FIGURES
OVERVIEW OF 2006
SIMPLIFIED ORGANIZATIONAL CHART
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05
06
07
10
12
13
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Both responsible and committed.
BUSINESS ACTIVITIES &
SUSTAINABLE DEVELOPMENT
CUSTOMERS
MEMBER-STAKEHOLDERS
EMPLOYEES
A CIVIC-MINDED COMPANY
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20
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03
Both local and powerful.
ORGANIZATION
20 BANQUE POPULAIRE BANKS
BANQUE FÉDÉRALE DES BANQUES POPULAIRES
NATIXIS
THE GROUP WORLDWIDE
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38
41
04
FINANCIAL INFORMATION
REVIEW OF OPERATIONS AND RESULTS 44
Both efficient and confident.
Commitment and the desire to win, established strengths and the ability to innovate… the Banque Populaire Group's
identity is based on its complementary characteristics. This consistency
makes the Banque Populaire Group a strong business, with its growth
based on the foundations of a real corporate spirit, active solidarity and
cooperation as a key value for today and the future. Attesting to the desire
to act and win together, 3.2 million member-stakeholders and 35,000
employees have put their trust in the Group, all driven by the dream of
entrepreneurship.
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THE BANQUE POPULAIRE GROUP IN 2007
An evolving Group
THE BANQUE POPULAIRE GROUP
Both stable and
2
Entrepreneurship, Cooperation and Humanity are the three intrinsic values of the
Banque Populaire Group. These values form the basis of its everyday activities and are
key in the success it achieves year after year. The Group's solid performance in 2006
was driven by these values. The relevance of its committed and pro-active strategy is
demonstrated not just by the figures, but by its revenue and earnings growth.
3
A desire for challenge
a driving force.
VALUES AND FOUNDATIONS
Deep roots drive the Group
Entrepreneurship, Cooperation and Humanity are the three fundamental values that
make up the Banque Populaire Group's genetic heritage. They determine its choices
in terms of corporate governance and its method of management, giving it a unique
position in the French banking industry.
The Banque Populaire Group has built up a strong identity over the
years. Created at the end of the 19th century on the initiative of
entrepreneurs as a means of providing support for each other, it
has managed to maintain and reinforce the values and beliefs of its
founders. The Group has adapted itself continually to a rapidly
changing society and economy in order to be able to offer its customers – both in France and abroad and at any time – the best
solutions, always in accordance with its original values.
Entrepreneurship
4
The Banque Populaire Group was created by and for entrepreneurs. Therefore, it inevitably suppor ts and encourages
Entrepreneurship. As market leader in business start-up loans, it
fuels the creative drive of its customers and employees. It respects
courage, tenacity and enthusiasm of people in their professional or
personal projects. For the Group, Entrepreneurship also means
recognizing the talent of others.
Cooperation
The Banque Populaire Group’s history, organizational structure and
day-to-day experience illustrate its ability to support cooperation in a
socially responsible way. Cooperation means working together in order
to succeed together, in concert, with mutual trust and transparency,
resisting short-term pressures. The Group has developed solid and
durable relationships with its 3.2 million member-stakeholders, who
are both the owners and the customers of the bank.
Humanity
The Banque Populaire Group has built itself up on the basis of
respecting the changing lifestyles, sensitivities and expectations of
its customers, partners and employees. It is one of the leading job
creators in France and dedicates large sums to training and skills
development. For the Group, each person's project is unique.
Putting the individual at the centre of its concerns enables it to
place its full meaning and emphasis on banking relations.
KEY FIGURES
20 Banque Populaire banks
68 mutual guarantee companies
3,200,000 member-stakeholders
7,000,000 customers
35,000 employees*
2,880 branches
Present in 71 countries with Natixis
* Number of full-time equivalent employees (permanent and temporary) as at December 31, 2006, and on the basis of the new scope of consolidation following the creation of Natixis.
The majority of these employees are in retail banking.
PROFILE
Through its network of Banque Populaire banks, all created
by entrepreneurs directly tuned into their economic and social
environment, the Banque Populaire Group has developed a climate
of confidence and closeness and established durable relationships
with its customers and member-stakeholders, based on shared
mutual interests.
Thanks to the expertise of its employees and the breadth of its range
of banking, financial and insurance products and services, the Group
is able to meet the expectations of a wide range of customers,
comprising individuals, small businesses, small retailers, farmers,
business owners, institutions, banks and financial institutions. The
Group provides continual support both in France and – via Natixis
– abroad, through its network spanning 71 countries.
A commitment to serving everyone
A unique characteristic of the Banque Populaire Group is its
long-standing commitment to economic and social development:
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Over 3,000 net new jobs in 2006;
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No.1 provider of loans for starting or acquiring a business in France;
I
Several of the Group’s entities are among the market leaders in
solidarity-based savings, thereby confirming its front-running
position (Finansol 2006 solidarity-based finance survey).
These positions in areas that are essential for everyone are a
concrete illustration of the aims of the Banque Populaire Group. Its
numerous initiatives in respect of sustainable development also
demonstrate the real-life implementation of the cooperative values
that drive the Group’s day-to-day activities.
A three-dimensional organization
18 Banque Populaire regional banks, CASDEN Banque Populaire
and Crédit Coopératif
These cooperative organizations are the Group’s parent companies and the shareholders of Banque Fédérale des Banques
Populaires. They are autonomous, fully-fledged banks providing
their customers with a local service and a full range of banking and
insurance products and services.
>>> COOPERATIVE DIMENSION
Banque Fédérale des Banques Populaires
This is the central body of the network of Banque Populaire banks
and Crédit Maritime Mutuel or “Crédit Maritime” banks. It is also
the shareholder and the central body of Natixis, jointly with Caisse
Nationale des Caisses d’Epargne (CNCE). Finally, it is responsible
for the control, strategy and coordination of all of the Banque
Populaire Group's activities.
>>> FEDERAL DIMENSION
Natixis
Listed on Euronext Paris, Natixis is a joint subsidiary of the Banque
Populaire Group and the Caisse d'Epargne Group. It has five core business lines: corporate and investment banking, asset management, private equity and private banking, services and receivables management.
> > > L I STED-COMPANY DIMENSION
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With 7,000,000 customers and 2,880 branches, the Banque Populaire Group is one
of France's largest retail banking networks. As a cooperative organization built on strong
values, the Group strives for a harmonious balance between robust financial performance and concern for the collective interest.
Cooperation and enterprise
CHAIRMAN'S MESSAGE
Philippe Dupont, Chairman of the Banque Populaire Group
The Banque Populaire Group reported a solid performance for 2006, reflecting its
strong position in the French retail banking market in a more difficult global market. These
results confirm the relevance of its strategic choices. With the creation of Natixis(1), which
was an historic stage in its development, the Banque Populaire Group has strengthened its position in the areas of corporate and investment banking and services. This
new dimension will foster its growth.
«
With over 3.2 million
member-stakeholders
and 35,000 employees,
the Banque Populaire
Group is moving ahead
into the future with
determination
and serenity.
By pursuing its strategy of winning personal
customers as well as small business clients and
corporate clients, the Group delivered a strong
performance in 2006. Net banking income
exceeded B8 billion(2), an increase of 11%.Twothirds of net banking income came from retail
banking activities and one-third from Natixis,
thereby maintaining the traditional balance. Net
income attributable to equity holders of the
parent rose 14% to B1.7 billion.
Recurring retail banking revenues and the
creation of Natixis improved the Group's financial solidity. With total regulatory capital of
B20.4 billion, it has the means to continue with
its strategy of expansion in its core business
line and finding growth drivers in keeping with
its business model.
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Career path
of an entrepreneur
1981
Philippe Dupont becomes
Chairman and Chief
Executive Officer of Max
Dupont et Cie, a position he
holds until 1999.
1988
At the age of 37, he
becomes chairman of B.P.
ROP – Banque Populaire
(now Banque Populaire Val
de France), having been a
director since 1983.
1999
He is voted Chairman of the
Banque Populaire Group.
2006
He is appointed Chairman
of the Management
Board of Natixis.
In retail banking, in which the Banque Populaire
banks delivered one of the best performances
in France in 2006, with net banking income up
5.3% excluding the effect of home purchase
savings plans, the Group’s strategy is based on
three core principles: winning customers, ensuring customer loyalty and selling more products
to each customer.We have continued to adapt
our network, which now comprises 18 Banque
Populaire regional banks and nearly 3,000
branches located throughout France. The
hiring of 3,000 new employees, mostly in the
retail banking network, constitutes an additional
advantage in our expansion.
Our strategy proved fruitful yet again this year.
The relevance and scope of our range of
products and services and the professionalism of our teams are reflected by a significant increase in the number of customers. Organic growth was boosted by
two new partnerships - one with Ordre
des Masseurs Kinésithérapeutes (French
Physiotherapists’association) for small businesses and one with La Mutuelle des Étudiants (LMDE) (France’s principal student
mutual insurance company) for personal customers. Our investment in international operations is beginning to come to fruition both in
Eastern Europe and in Africa.We have enjoyed
an auspicious start to 2007 with the acquisition
(1) Joint subsidiary of the Banque Populaire Group and the Caisse d'Epargne Group
(2) Pro forma figures
of Foncia, market leader in residential property
services with operations primarily in France,
Germany, Switzerland and Belgium.
With 3.2 million member-stakeholders and
35,000 employees, the Group is moving ahead
into the future with determination and serenity,
respecting its cooperative values combining both
performance and responsibility to society. The
Banque Populaire Group is open to progress
and innovation and will
continue to prioritize
local relationships
with its customers.
I am confident
about the ability
of our Group –
with its entrepreneurial foundations – to adapt
to the demands of
the rapidly evolving banking sector in
a changing world.
The Banque Populaire Group's corporate governance decisions are in keeping with its
values, its federal structure and its status as a cooperative bank. Chaired by Philippe
Dupont, the Board of Directors of Banque Fédérale des Banques Populaires, the
central body, is the Group's real governing body.
As the Group’s real governing body, the Board of Directors of
Banque Fédérale des Banques Populaires is responsible for overseeing and defining the strategy of all of its components from a variety
of viewpoints, such as development, profitability, safety, organization
and IT. It is responsible in particular for taking any measures necessary to ensure the liquidity and solvency of the Banque Populaire
network and approves Directors of the Banque Populaire banks.
In 2006, the strategic proposals submitted to the Board included
the creation of Natixis with the Caisse d’Epargne Group and the
creation of Banque Populaire Occitane by merging two regional banks.
The Board of Directors of Banque Fédérale des Banques Populaires is supported by three consultative committees: the Group
Risk Management Committee, the Audit Committee and the
Remuneration Committee.
A Corporate Governance Charter
In November 2002, the Board of Directors approved
the Corporate Governance Charter of the Banque Populaire banks and the Framework Internal Rules for their
Boards of Directors.The Charter sets out the responsibilities of the Board of Directors, the Chairman, the Chief
Well before the May 2001 Corporate Governance Act entered the
statute books, the Banque Populaire banks had already decided to
optimize the effectiveness of their corporate governance by separating the roles of Chairman and Chief Executive Officer, thus separating responsibility for strategic decisions and control from the implementation of these decisions and the management of the business.
The Chairman of the Board of Directors of Banque Fédérale
des Banques Populaires is elected by the Board of Directors and
plays the role of Chairman and Chief Executive Officer. He has
full powers to act on behalf of the company under all circumstances. He bears the title of Chairman of the Banque Populaire
Group. If recommended by the Chairman, the Board of Directors
may appoint one or more Deputy Chief Executive Officers to assist
the Chairman in his role as Chief Executive Officer.
Executive Officer and the consultative committees of the Banque
Populaire banks.
Top-ranking business managers
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The Banque Populaire banks are cooperative banks and their member-stakeholders play a central role in their organization. Boards of
Directors are made up of member-stakeholders who are also customers.The boards are responsible for defining the bank’s strategy
and general policy, in keeping with the Group’s strategy and policy,
on the basis of proposals made in concert by the Chairman and
the Chief Executive Officer.
The Chairman of each Banque Populaire bank holds or has held
positions of senior responsibility within local or national companies
and is actively involved in the economic life of the region. Each Chairman therefore has a vast amount of expertise in running a company
and the interaction this requires with the local environment, particularly the financial environment.The Chairman is elected by the bank’s
Board of Directors for a renewable three-year term.
The Chief Executive Officer of a Banque Populaire bank has a depth
knowledge of the banking industry, having spent the majority of his
professional life in the industry, taking increasing responsibility within
various companies of the Group. He is selected on the basis of a
list of aptitudes and appointed, on the proposal of the bank’s Chairman of the Board of Directors and its members, for a renewable
five-year term.
The Chief Executive Officer is responsible for the day-to-day management of the bank. As manager of the bank and its employees,
the Chief Executive Officer shares responsibility with the Chairman
for the implementation of an internal control system to protect
the bank against all potential risks (credit and margin risks,
structural interest rate risks, market risks, currency risks, liquidity risks,
operational risks etc.).
The Board of Directors of Banque Fédérale des Banques Populaires is the decision-making and representative body of the Banque
Populaire Group. It comprises 16 members, elected by the general
shareholders’ meeting. Directors are individuals, the majority of whom
must be Chairmen, Directors or Chief Executive Officers of a Banque
Populaire bank. In keeping with the Group’s values of cooperation
and organization, members of the Board of Directors are elected
by their peers for a three-year term. One-third of Directors retire
by rotation each year.
Board of Directors of
The Board of Directors of Banque Fédérale des Banques Populaires is the Group’s
real governing body and acts as its decision-making and representative body. Its
composition reflects the Group’s federal and cooperative organizational structure.
Chairman and Chief Executive Officer Philippe Dupont has been given the title of
Chairman of the Banque Populaire Group.
MEMBERS AS AT DECEMBER 31, 2006
MAIN FUNCTION WITHIN THE COMPANY (1)
PHILIPPE DUPONT
Chairman of the Banque Populaire Group
FIRST APPOINTED / TERM END (2)
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
07-08-1999 / 05-2008
VICE-CHAIRMEN
JEAN-FRANÇOIS COMAS
CLAUDE CORDEL
JEAN-LOUIS TOURRET
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Chief Executive Officer of Banque Populaire Côte d’Azur
Chairman of Banque Populaire du Sud
Chairman of Banque Populaire Provençale et Corse
05-31-2001 / 05-2007
09-23-1998 / 05-2008
07-08-1999 / 05-2009
BOARD SECRETARY
YVAN DE LA PORTE DU THEIL
Chief Executive Officer of Banque Populaire Val de France
CHRISTIAN BREVARD
MICHEL CASTAGNÉ
JEAN CLOCHET
PIERRE DELOURMEL
PIERRE DESVERGNES
STÈVE GENTILI
YVES GEVIN (3)
JACQUES HAUSLER (4)
BERNARD JEANNIN
PIERRE NOBLET
CHRISTIAN DU PAYRAT (5)
Deputy Vice-Chairman of Banque Populaire d’Alsace
Deputy Vice-Chairman of Banque Populaire Occitane
Chairman of Banque Populaire des Alpes
Chairman of Banque Populaire de l’Ouest
Chairman of CASDEN Banque Populaire
Chairman of BRED Banque Populaire
Chief Executive Officer of Banque Populaire Atlantique
Chief Executive Officer of Banque Populaire Lorraine Champagne
Chief Executive Officer of Banque Populaire Bourgogne Franche-Comté
Deputy Vice-Chairman of Banque Populaire Rives de Paris
Chief Executive Officer of Banque Populaire du Massif Central
05-22-2002 / 05-2008
DIRECTORS
12-20-2000 / 05-2009
05-27-2004 / 05-2007
05-27-2004 / 05-2007
05-19-2005 / 05-2009
05-27-2004 / 05-2007
10-20-1999 / 05-2008
02-22-2006 / 05-2007
05-18-2006 / 05-2009
01-19-2005 / 05-2008
05-27-2004 / 05-2007
05-18-2006 / 05-2009
NON-VOTING DIRECTOR BY RIGHT
NATIXIS
Represented by François LADAM, member of the Management Board of Natixis
OTHER NON-VOTING DIRECTOR
JEAN-CLAUDE DETILLEUX
Chairman and Chief Executive Officer of Crédit Coopératif
MEMBERS IN A CONSULTATIVE CAPACITY
MICHEL GOUDARD
BRUNO METTLING
Deputy Chief Executive Officer of Banque Fédérale des Banques Populaires
Deputy Chief Executive Officer of Banque Fédérale des Banques Populaires
ALSO ATTENDING MEETINGS
OLIVIER HAERTIG
PIERRE RIBUOT
MARTINE VEGA
General Secretary of Banque Fédérale des Banques Populaires
Representative of Banque Fédérale des Banques Populaires Works Council
Representative of Banque Fédérale des Banques Populaires Works Council
(1) Company: Banque Fédérale des Banques Populaires
(2) Date of general meeting to approve the financial statements for the year
(3) Since February 22, 2006, Daniel Duquesne has been replaced by Yves Gevin, Chief Executive Officer of Banque Populaire Atlantique.Yves Gevin was co-opted as director at the meeting of the
Board of Directors of Banque Fédérale des Banques Populaires of February 22, 2006, and ratified by the general shareholders' meeting of May 18, 2006.
(4) Jacques Hausler, Chief Executive Officer of Banque Populaire Lorraine Champagne, was appointed by the general shareholders' meeting of May 18, 2006, to replace Francis Thibaud as director.
(5) Christian du Payrat, Chief Executive Officer of Banque Populaire du Massif Central, was appointed by the general shareholders' meeting of May 18, 2006, to replace Richard Nalpas as director.
Yvan de La Porte du Theil
Christian Brevard
Michel Castagné
Jean Clochet
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Pierre Delourmel
Pierre Desvergnes
Stève Gentili
Yves Gevin
Jacques Hausler
Bernard Jeannin
Pierre Noblet
Christian du Payrat
François Ladam
Jean-Claude Detilleux
Michel Goudard
Bruno Mettling
Philippe Dupont
Jean-François Comas
Claude Cordel
Jean-Louis Tourret
2006 KEY FIGURES
Solid results…
Group level
2,488
2,750
+11%
1,700
+14%
2005
2005
2006
2005
2005
+11%
2005
2006
2005
1,487
2006
8,083
7,280
NET BANKING INCOME
GROSS OPERATING INCOME
NET INCOME
PRO FORMA - IN MILLIONS OF EUROS
20.4
10.5%
19.3
8.5%
+2 pts
Long-term ratings
Banque Populaire Group
12/31/06
12/31/05
2005
12/31/05
TOTAL REGULATORY CAPITAL
STANDARD & POOR’S
MOODY’S
AAAa3
TIER 1 RATIO
IN BILLIONS OF EUROS
Retail banking
1,936
1,095
+6%
+9.5%
2005
2006
2005
2005
+6%
2005
2006
2005
1,199
2,047
2005
5,578
2006
5,257
NET BANKING INCOME
GROSS OPERATING INCOME
NET INCOME
92
85
12/31/06
+9%
12/31/05
12/31/06
12/31/05
2005
2005
+8%
+12%
12/31/06
65
59
2005
109
97
12/31/05
10
12/31/06
+1.1
OUTSTANDING LOANS
CUSTOMER DEPOSITS
CUSTOMER SAVINGS
…and strong positions
No.1
> in business start-up loans
> in the franchise sector
> in mutual guarantees in France (thanks to its 68 mutual guarantee companies)
> in factoring in the small business market
No. 2
> in the French small business market
…and thanks to Natixis's activities, the Banque Populaire Group is also
No.1
> in employee benefits planning in France
> in receivables management in France
> issuer of cards for small businesses
No. 2
> in real estate financing
> in receivables management
No. 3
> in credit insurance worldwide
> in factoring in France
The 2006 Finansol solidarity-based finance survey ranked three of the Group's entities among the top
six in the solidarity-based savings sector: Banque Populaire d’Alsace, Crédit Coopératif and Natixis Asset
Management.
Long-term ratings
Natixis
STANDARD & POOR’S
MOODY’S
FITCH RATINGS
AA
Aa2
AA
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One in three French SMEs works with the Banque Populaire Group.
The Banque Populaire Group achieved solid results and strong positions in 2006
thanks to the relevance of its business model…
OVERVIEW OF 2006
The local bank
Creation of Natixis, international expansion, updated offering…
The highlights of 2006.
Natexis Banques Populaires
becomes Natixis
In March 2006, the Banque Populaire Group and the Caisse d’Epargne
Group entered into negotiations concerning the combining of their
corporate and investment banking and services activities within a joint
listed subsidiary. On November 17, this resulted in the creation of
Natixis, a new market leader in the European banking industry.The issuing
of Natixis shares – the largest ever secondary market share issue in France
– was completed on December 5 and was a great success, particularly
among private investors.
Reinforced commercial strength
12
The Banque Populaire banks continued to expand their coverage of
France, opening 77 new branches in 2006.This robust network growth
has been accompanied by the creation of leading regional operators.
The new Banque Populaire Occitane was created in October 2006 from
the merging of Banque Populaire Toulouse-Pyrénées and Banque Populaire
Occitane.
New products and services
One of the key events of 2006 was the launch of Fructi-Pulse, a
turnkey life insurance policy, as well as Autonomis, a long-term care
cover policy, the Atout Libéral range of products and services for
self-employed professionals and ACTIFLOW, a cash management
offering to meet the needs of companies of all sizes.
International expansion
Spurred on by the success of BICEC in Cameroon, the Group enhanced
its presence in Central Africa with the acquisition of the leading banking
network in the Republic of the Congo. It has also stepped up its expansion in Central and Eastern Europe by establishing VBI-Volksbank
International in Ukraine.
A pioneering role in sustainable
development
March 2006 saw the nationwide launch of a range of “green” products
dedicated to the financing of environmentally-friendly and renewable
energy projects, comprising the CODEVair local deposit account and
PREVair loans for environmentally-friendly property projects.
A new giant of the oceans
After 17 years of sponsoring nautical projects, the Group shifted up
a gear by suppor ting the construction of a record-breaking maxi
multi-hull trimaran, the Maxi Banque Populaire V.
History
End of the 19th century Small entrepreneurs
joined forces to obtain access to lending
facilities, resulting in the creation of the
Banque Populaire banks.
1917 Law creating the status of the Banque
Populaire banks as cooperative companies
owned exclusively by their member
stakeholders. Their objective was to support
lending to small and medium-sized companies.
1921 Creation of Caisse Centrale des
Banques Populaires.
1929 Creation of Chambre Syndicale des
Banques Populaires.
And more recently...
1998 Friendly takeover bid from the
Banque Populaire Group for Natexis SA.
1999 Creation of Natexis Banques Populaires.
2001 Creation of Banque Fédérale
des Banques Populaires, replacing
Chambre Syndicale des Banques
Populaires as the central body of the
Banque Populaire Group.
2002 Acquisition of a majority stake in
Coface by Natexis Banques Populaires.
2003 Crédit Coopératif adopts Banque
Populaire cooperative public limited
company (“société anonyme”) status.
2004 The provision of technical support
for the Crédit Maritime regional banks
by Banque Populaire regional
banks in coastal areas.
2006 Creation of Natixis, a joint subsidiary
of the Banque Populaire Group
and the Caisse d’Epargne Group.
BANQUE POPULAIRE GROUP: ORGANIZATIONAL CHART
The Banque Populaire Group has a three-dimensional organizational structure: a COOPERATIVE DIMENSION with the Banque Populaire banks, the Group's parent companies, a
FEDERAL DIMENSION via Banque Fédérale des Banques Populaires, the central body of the
Banque Populaire network and Natixis, which it controls jointly (34.4%) with CNCE*, and lastly
a LISTED-COMPANY DIMENSION via Natixis, the listed vehicle of the Banque Populaire Group
and the Caisse d’Epargne Group.
100%
79.29%
i-BP
IT
Platform
99.46%
Banque Fédérale
des Banques Populaires
(BFBP)
60.93%
65.81%
(1)
PROPERTY
MANAGEMENT
RENTAL
MANAGEMENT
100%
MA BANQUE (2)
52.46%
BICEC
Bank in Cameroon
SAS SIBP
24.5%
20.71%
34.44%
VBI
VOLKSBANK
INTERNATIONAL (3)
99.99%
BCI
Bank in Congo
REAL ESTATE
TRANSACTIONS
(4)
Corporate and Investment Banking
Ixis CIB, Natixis Bleichroeder SA, Natixis
Bleichroeder Inc, Natixis Lease, GCE Bail
Asset Management
Ixis AM group (84.58%), Natixis AM
Private Equity and Private Banking
Compagnie 1818 (73.40%), Banque Privée
Saint Dominique, Natixis Private Equity
Services
Foncier Assurance (60%), Natixis Assurances,
Gestitres, Caceis (50%),Natixis Investor Servicing,
CEFI (67%), Novacrédit (66%),
Natixis Garanties, Natixis Interepargne,
Natixis Paiement
Receivables Management
Coface, Natixis Factor, CGE Affacturage
CIFG (Financial Guarantees)
Contribution from retail banking
via CCI certificates (5)
* CNCE (Caisse Nationale des Caisses d'Epargne)
(1) On April 3, 2007, a standing offer was submitted for the shares not held by BFBP.
(2) Subsidiary of BFBP, MAAF and MMA.
(3) VBI-Volksbank International is a bank under Austrian law operating in nine countries in Central and Eastern Europe.
(4) Joint subsidiary with the Caisse d'Epargne Group. Subsidiaries are 100% owned unless stated otherwise.
(5) Cooperative investment certificates: equity interest in the Banque Populaire Group and Caisse d'Epargne Group networks.
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18 Banque Populaire
regional banks,
CASDEN Banque Populaire,
Crédit Coopératif
Crédit Maritime Mutuel
Affiliated to Banque
Fédérale
As at April 4, 2007
Both responsible
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The Banque Populaire Group has close, local relationships with all of its customers.
By listening to its customers, it is able to offer them the most suitable and innovative
banking solutions. It gives the best measure of sustainable development. It supports
its member-stakeholders in their civic initiatives. The Group's social policy regarding
its employees is founded on paying attention to people, training and employability.
All of its actions take economic, social and environmental concerns into account.
BUSINESS ACTIVITIES & SUSTAINABLE DEVELOPMENT
Momentum for the future
15
and committed.
CUSTOMERS
Personal customers
In 2006, the Banque Populaire Group successfully continued
with its strategy of winning new personal customers and
ensuring their loyalty thanks to an effective commercial organization, a range of high quality products and considerable
mobilization of its network.
16
By pursuing an offensive strategy, based on its
relevant positioning,the Group was able to win the
trust of over 400,000 new personal customers in
2006.This is an impressive performance in a highly
competitive market offering moderate growth.
The Banque
Populaire Group
and LMDE have
made a commitment
to support students.
In 2006, the Group signed
an agreement with
La Mutuelle Des Etudiants
(LMDE) in order to facilitate
students' access to loans
and thereby give them
greater autonomy. This
five-year partnership
agreement enables affiliates
and/or members of LMDE to
take out loans without
the need for a guarantee
from a parent or
third party.
Local relations and
an interactive approach
are core tools
The Banque Populaire banks continued to enhance
their geographical coverage of France in 2006
with the opening of 77 new branches, bringing
the total number of branches to 2,880.The cash
dispenser network was also extended to 4,300
ATMs in total, an increase of 7%, coupled with
enhanced services offered to customers, such as
the ability to recharge mobile phones at all cash
dispensers. This improved geographical presence
has been backed up by a high level of investment
in remote banking channels in order to meet new
customer expectations. Online banking saw strong
growth, with 1.7 million subscribers (up 23%) and
an average of 10.5 million connections per week.
The Group’s call centers were also in high demand,
with 10 million incoming calls in 2006 and 450,000
e-mails handled (an increase of 15%).The strongest
growth was in the SMS+ service, which had over
100,000 users at end-2006 (up 80%).
A dynamic commercial
strategy
In order to renew and increase its personal
customer base, the Group has implemented a
strategy of winning new customers, focusing
primarily on young working people,high net worth
individuals and public sector employees.2006 saw
the signature of an innovative partnership agreement with France’s principal student mutual insurance company La Mutuelle Des Etudiants (LMDE)
(see inset) and the creation of a national structure dedicated to private asset management.This
strategy has been accompanied by efforts to ensure
customer loyalty by launching new products and
services suited to their new needs: life insurance
policies Fructi-Pulse and Fructi-Néo, the Autonomis
range of long-term care insurance policies etc.
As a result of these efforts, the Banque Populaire
Group delivered an excellent commercial performance in 2006. Customer savings were particularly
robust,with significant growth thanks to the strong
momentum of the life insurance business (premium
income up 38% at B3.4 billion) and the successful
placement of Natixis shares.2006 was also a good
year for personal loans, with a 16.5% increase in
origination to B16 billion, boosted by continuing
growth in home loans and consumer lending.
The Banque Populaire Group is present in all areas of the small
business market and strengthened its leading position in 2006
while also enhancing its range of products and services.
Successful
launch of the “Prêt
Socama
Transmission
Reprise” loan
Launched in September
2005 by the Banque
Populaire Group in
partnership with Socama
(Sociétés de Caution
Mutuelle Artisanales) mutual
guarantee companies and
the European Investment
Fund, this innovative product
has been a resounding
success among small
businesses, with loans
provided for over 3,000
businesses in 2006. It offers
loans for individual
entrepreneurs and legal
entities of up to €100,000
with a personal guarantee
of just 25% of the size
of the loan.
The Group is the No. 1 bank for small businesses, with one in three craftsmen and one in
four shopkeepers currently Banque Populaire
customers. It has also developed real expertise
among other small business customers, including farmers, fishermen and self-employed professionals. Thanks to its local presence,
skilled staff and close ties with affiliated
networks and professional organizations, the
Group is able to support its customers on
both a professional and a personal level.
A key player
As market leader in providing loans for
starting or acquiring a business, the Banque
Populaire Group provides loans for around
one in three star t-up owners a year. Its
strength lies primarily in the innovative products and services available for entrepreneurs,
such as Prêts Express Socama loans requiring
no personal guarantee and Prêts Socama
Transmission Reprise loans for business buyouts (see inset). Again confirming its commitment in this area, the Group signed a
partnership agreement in 2006 with French
business start-up agency APCE (Agence pour la
Création d’Entreprise), to facilitate access to
financing for start-up owners.
The Group has also reasserted its position as
the No. 1 franchise bank in the large retail sector,
with 50% market share among franchisers and
27% among franchisees. In the agricultural
market, the Group’s performance in 2006 –
with financing of 533 million – illustrates the
success of its approach founded on long-term
commitment, local relations with customers
and solidarity in the event of a crisis.The Group
also continued with its effor ts to win new
customers in the self-employed professionals
segment with the launch of a new generic
offering, Atout Libéral, in 2006.
On the strength of its market-leading positions in the small business market, the
Banque Populaire Group delivered a strong
commercial performance in 2006. It is still
No. 1 in electronic banking with 25% market
share in issuances of payment cards.Thanks to
the success of its receivables management
services for small businesses, the Group has
established itself as the No. 1 factoring provider
in this market (contracts up 43%). Finally, with
a portfolio of 28,160 small business contracts,
Assurances Banque Populaire IARD is continuing to make progress in this market.
Small businesses
17
CUSTOMERS
CUSTOMERS
Corporate clients
The Banque Populaire Group has established itself as a key player
in the corporate banking market. Its wide-ranging expertise and
the professionalism of its teams enable it to support its clients –
whether small, medium-sized or large companies – in all stages
of their development.
18
“Cap Poste
clients”
promotion
A number of training,
management and
communications tools and
actions were made
available to the Banque
Populaire banks to help
them to market receivables
management products
to corporate clients.
This was a major success,
with growth of 13%
in new contracts.
From its solid footing in the corporate market,the Banque Populaire Group offers a broad
range of banking products and services in areas
as diverse as cash flow and capital management,
structured and specialized financing, employee
benefits planning and international or financial
engineering. In addition to this global approach
to clients’ needs, the Group offers a local presence, guaranteeing reactivity and understanding
of companies’ specific needs. It has a structure
dedicated to this customer group, based on
the Banque Populaire business banking branches
and business centers. Specialists at its 155 business centers mobilize and organize the Group’s
various resources in order to offer tailor-made
solutions to each client.
In 2006,the Banque Populaire Group,with Natixis
Factor*, also consolidated its position as market leader in factoring.
Supporting business
development
Finally,in 2006,Coface – No.1 in France in export
credit insurance – achieved its strongest intrinsic growth in 10 years at 9.8% like-for-like.
Thanks to the combined expertise of the
Banque Populaire regional banks and Natixis,
as well as the complementary know-how of
Coface, the Group is able to provide support
at each stage of a company’s development, from
starting up to expansion in France and abroad,
IPOs and buyouts. With market share of 37%,
the Group is the leading principal bank for businesses (source: SOFRES - September 2005).
It is also No.1 in employee savings and has confirmed its position as the partner of choice for
companies in the larger market of employee
benefits planning.
Thanks to Natixis, the Banque Populaire Group
is a key player in financial engineering in Europe
and the United States, with an increasing number of mandates and structured transactions. It
continues to support its clients in their international trading activities and various projects on
external markets (credit insurance, expor ts,
imports, establishing offices or finding partners).
* (formerly Natexis Factorem)
The Banque Populaire Group has a solid position in the large
market of institutional clients and the local public sector.
Against the backdrop of major regulatory reforms, it offers
solutions adapted to the new expectations of these various
operators.
Partner of choice
Partnership
with Ordre des
Masseurs
Kinésithérapeutes
In 2006, the Banque
Populaire Group won the
invitation to tender by the
new Ordre des Masseurs
Kinésithérapeutes (French
physiotherapists'
association). In addition to
providing payment
processing services for all of
the association's bodies, the
partnership includes a
range of personalized
services for the organization's
60,000 professional
members.
The institutional client market comprises institutions in the strict sense (insurance companies, mutuals, providers of personal risk insurance, pension funds, associations, training and
collecting bodies etc.), as well as the local public sector, including local authorities, public or private law satellite organizations, the public hospital sector and semi-public companies. The
Banque Populaire Group has asserted its position as a partner of choice for these two customer groups, thanks to the local anchoring of
its network, the know-how of Crédit Coopératif
and the expertise of Natixis. It offers national,
regional and local organizations services meeting their new requirements against the backdrop
of major regulatory reforms, with decentralization and the opening up of banking services for
the local public sector, acceleration in mergers
in the mutual insurance sector and in particular
mutual health funds.
Strengthened position
The introduction of a number of reforms
affecting the local public sector constitutes
an oppor tunity for the Banque Populaire
Group, which is looking to strengthen its position significantly among local organizations, in
particular small and medium-sized municipalities. In order to achieve this, it is developing
a broad range of products and services, including short-term loans, bridging loans, conventional and specialized finance, project finance,
electronic banking and service vouchers.The
fruits of this pro-active approach were seen in
2006. In addition to an agreement with the
French Ministry for Employment, Social Cohesion and Housing concerning the distribution
of pre-financed service vouchers to pay domestic employees (“Chèque Emploi Service Universel” or CESU) to its 12,000 agents, the
Group won two invitations to tender for the
Monéo e-wallet.
The Banque Populaire Group has also stepped
up its expansion efforts in the institutional
client market. In order to meet organizations’
new needs, particularly in terms of payments
and financial asset management, in 2006 it
launched the ACTIFLOW cash management solution, as well as a comprehensive range of structured products for pension funds and treasury
managers. With Crédit Coopératif, the Group
also has the leading bank for operators in the
social economy. It has a very strong presence
in the healthcare and social sector, offering a
wide range of data transmission and teletransmission services for professional guardians.
Institutional clients
19
CUSTOMERS
MEMBER-STAKEHOLDERS
20
Banque Populaire:
a different kind of bank
Parts sociales:
Shares in the
bank's capital
Shares in cooperative
companies are known
as parts sociales. Like
conventional commercial
companies, cooperative
companies issue shares in
exchange for a financial
contribution. These shares
represent a portion of the
company's share capital and
certify the rights of the partner,
member-stakeholder or
shareholder. Shares in
cooperative companies are
not listed and are therefore not
affected by market fluctuations.
The price per share varies from
one Banque Populaire bank
to the next and is determined
by the bank's bylaws. Each
year, at the annual general
meeting, the board of directors
of the bank elected by the
member-stakeholders sets
the rate of interest paid
on shares.
With a solid anchoring in the reality of European companies,
cooperation constitutes a strong identity and leverage for
growth. Through its relationships built up over the years
with its member-stakeholders, the Group demonstrates its
cooperative commitment on a daily basis and is continually stepping up its localized efforts.
The Banque Populaire Group benefits from
the unique advantage of very close relations
with its member-stakeholders,which are reinforced every day. Its cooperative commitment,
driven by the 18 Banque Populaire regional
banks, CASDEN Banque Populaire, Crédit
Coopératif and Crédit Maritime, is reflected
by the rapid increase in the number of member-stakeholders (3.2 million at end-2006 compared with 2 million in 2002).This strong growth
in the number of member-stakeholders is the
result of a pro-active strategy and numerous
initiatives.
Member-stakeholders:
closely involved partners
Being a member-stakeholder means joining
forces with men and women with the same
values. By acquiring shares in the bank, the customer becomes a partner and gives the bank
the means to invest and expand.Through their
cooperative commitment and involvement in
the bank’s initiatives, member-stakeholders are
also involved in the economic, cultural and social
development of the region. Member-stakeholders are kept abreast of the bank’s activities. Each
year, they attend the annual general meeting,
approve the financial statements and resolutions,
ratify management decisions and elect directors.
Active solidarity on
the ground
In an increasingly disorientated world,the member-stakeholder concept responds to the need
for proximity, a local footing and civic initiatives.
This is demonstrated by the success of the actions
of member-stakeholders carried out in collaboration with the Banque Populaire banks.With
programs such as Club Déclic, regional initiative
awards and voluntary work awards, the Banque
Populaire banks and their member-stakeholders support civic projects and efforts to protect
the environment and cultural heritage.Together,
they endeavor to improve the quality of life of
3.2
AVERAGE AGE****
NUMBER OF MEMBER-STAKEHOLDERS
IN MILLIONS
19.2%
17.4%
15.0%
11.9%
11.3%
10.9%
20 - 24 years
3.7%
18 - 19 years
2.8%
16 - 17 years
1.7%
12 - 15 years
0 - 11 years
9.5%
I
Member-stakeholders
children of non
member-stakeholders
I Member-stakeholders
children of
member-stakeholders
ALL MEMBER-STAKEHOLDERS:
INTERGENERATIONAL TIES BETWEEN MEMBER-STAKEHOLDERS****
Customers aged under 25 with parent member-stakeholders represent 1.1x more member-stakeholders. Of
customers aged under 20, those with parent member-stakeholders represent 2.9x more member-stakeholders.
* Member-stakeholders of the Banque Populaire regional banks, CASDEN Banque Populaire, Crédit Coopératif and Crédit Maritime Mutuel.
** Member-stakeholders of the Banque Populaire regional banks and CASDEN Banque Populaire.
*** Source: Survey of member-stakeholders - CSA - June 2005
**** Member-stakeholders of the Banque Populaire regional banks excluding Lorraine Champagne, BRED, CASDEN Banque Populaire banks
and Crédit Coopératif.
people in difficulty and defend humanitarian
causes. In 2006, over 800 initiatives were implemented on a regional level by member-stakeholders or associations,supported by the Banque
Populaire banks.
Reality of the European
banking sector
The values and specific organizational structure of cooperative banks strike a chord with
citizens and consumers in Europe and worldwide.This is demonstrated by the success of the
26th Congress of the International Confederation of Popular Banks (CIBP), which is held every
three years and brings together the heads of
banking groups belonging to the organization.
Over 300 people representing 17 countries from
around the world attended the congress, hosted
by the Banque Populaire Group.
eholders
ber-stak
m
e
m
f
ro
Numbe at end-2006:
This ability to act, invest and share in initiatives
is particularly illustrative of the Group’s values
of Entrepreneurship, Cooperation and Humanity. Not only does it allow for strong and lasting
relations between member-stakeholders and
employees of the Banque Populaire banks, it also
has a positive impact on the general public.
,000
3,20in0
ase of
an cre
0
200,0-y0
a
n e r.
86%***
BANQUE POPULAIRE
MEMBER-STAKEHOLDERS USING BANQUE
POPULAIRE AS THEIR MAIN BANK
year-o
21
2006*
2002**
2000**
51
years
2
1.9
EMPLOYEES
22
Dynamic human
resources management
Replacing employees, passing on skills, developing expertise,
encouraging staff loyalty – these are the fundamental human
resources issues facing the Banque Populaire Group. This
constitutes a real challenge but also an opportunity to evolve
and mobilize the Group's greatest asset – its employees.
Supporting
young employees
The Banque Populaire
Group is continuing with its
pro-active strategy of
supporting young
employees in the start of
their professional life. In
2006, the Group took on
1,200 student interns and
648 young people on
professional training
or apprenticeship
contracts, mainly in
retail banking.
The success of the Banque Populaire Group
is founded on the talent and motivation of its
employees. In keeping with its core values, the
Group has developed a human resources policy
centered on job priority, drawing value from
human potential, skills development and
maintaining social cohesion.
In local retail banking, one of the key events of
2006 was the merging of two Banque Populaire
regional banks – Banque Populaire Occitane and
Banque Populaire Toulouse-Pyrénées – bringing
the total number of mergers over the last seven
years to 12. The average size of the Banque
Populaire regional banks is now 1,500 employees.
The impact of the creation
of Natixis
Recruitment, training
and mobility
Following the creation of Natixis on November 17, 2006, the Banque Populaire Group’s
workforce was refocused on retail banking.
At the end of December 2006, it had 34,994
employees.This development has been accompanied by changes in the employment structure.
Due to the need to replace older employees,
update skills and create new branches,the Group
has a high recruitment requirement. In 2006,
the Banque Populaire Group hired over 3,000
new employees on permanent contracts, including 2,700 at the Banque Populaire regional banks.
The majority of these new hires were young
people (two-thirds are aged under 35) and well
qualified (45% have at least four years’ higher
education). Finally, candidates with at least two
years’ professional experience accounted for
two-thirds of new hires, with average experience of seven to eight years.
With 29,744 employees, the Banque Populaire
banks account for 90% of the Group’s workforce (compared with 64.6% before the creation of Natixis).Two-thirds of these employees
are allocated to the commercial banking
network.
55% with two years' higher education (doubled in 10 years)
24% with at least four years' higher education (average according to the French banking association: 20%)
34% of employees have banking qualifications
Over 2,000 hold qualifications from the Institut Technique de Banque or the Centre d’Etudes Supérieures de Banque
(5% of total employees)
34% management grade (+6.4% in 2004 and +20% in 10 years)
Source: BFBP - June 2006
A major recruitment drive
35,000 employees at Group level (new scope of consolidation) serving 7 million customers
1,500 employees on average per Banque Populaire bank
1,000 temporary employees, 60% of whom were converted to permanent employees
Over 3,000 new hires in 2006 and 2,000 planned for 2007 (changes in the Group's scope of consolidation)
Sources: BFBP - December 2006
Continually raising the skills level
The Group has implemented an appropriate
training policy,with the aim of encouraging both
the professional development of its employees
and their collective performance. In 2006, 85%
of employees underwent at least one training
program, for a budget representing 6.4% of the
wage bill. The main emphasis was placed on
developing the skills of sales staff and the integration of new regulatory requirements within
the banking sector (prevention of non-compliance risks, risks relating to people etc.).
One of the key events of the year was the successful launch of the “e-tinéraires” online training platform, which had a total of over 90,000
connections, 24,000 users and 45,000 hours of
training in 2006.
Mobility, in the same way as training, contributed
to the professional development of the Group’s
employees. In order to encourage this momentum,the Group endeavors to support its employees in their internal mobility plans, whether
between departments,regions or Group entities.
Employer-Employee
relations: constructive
dialogue
Employer-Employee relations fall within the
framework of the sharing of thoughts and sustained dialogue at three levels: branch level,
Group level and bank level.The various agreements signed in 2006 in areas such as remu-
23
neration and professional training attest to the
reality and wealth of this social aspect, benefiting all of the Group’s employees.The quality of
employer-employee relations within the Group
is also based on a high level of commitment to
employment. Mergers between Banque Populaire regional banks therefore have proceeded
without affecting jobs and have opened up new
opportunities for employee development.
The creation of Natixis constituted a major
event in terms of the Group’s employee relations in the first half of 2006. All employee representatives and human resources managers
were involved in the information and consultation process.
The Group Human Resources depar tment
worked in concert with the departments concerned at Banque Fédérale des Banques Populaires and Natexis Banques Populaires (now
Natixis) to provide suppor t throughout the
process.
0
35,0y0ees
emplo
3,00lo0
yees
mp
new e
ce
in Fran
Environment
The Banque Populaire Group has established itself as a
key player in financing environmentally-friendly projects. This
commitment embodies its cooperative values, which make it
fully committed to its stakeholders and the regions in which
it operates.
24
Pioneer in the financing
of environmentally-friendly
projects
Natixis: commitment
at the heart of its
business activities
Natixis has made the battle
to counter climate change
one of the main tenets of its
sustainable development
policy. The bank therefore
supports its customers
subject to new
environmental requirements
such as carbon dioxide
quotas and is increasing its
investment in renewable
energy projects
(e.g. wind farms).
The Banque Populaire Group paved the way
in France for reconsidering the role of banks
as the financial instruments of public sustainable
development policies.This is reflected primarily
by the creation of banking solutions taking environmental criteria into account.In 2006,the Group
launched the CODEVair environmentally-friendly
savings account – developed since 1999 by Banque
Populaire d’Alsace – and the PREVair home loan.
Nine Banque Populaire banks already offer these
“green” products, the aim of which is to facilitate
financing of environmentally-friendly property
projects by individuals.
This customer approach is supported by efforts
in partnership with public authorities.The Banque
Populaire banks work closely with local authorities
and ADEME*, mainly in the context of the first
public-private partnerships. Banque Fédérale des
Banques Populaires is also a founder member of
the Effinergie association, which aims to promote
innovative solutions for energy-efficient buildings.
Finally,the Group endeavors to reduce the impact
of its activities on the environment and to raise
employee awareness about environmental issues.
Efforts to encourage environmentally-friendly behavior internally (waste sorting,environmentally responsible purchasing, construction and renovation of
buildings, business travel plan etc.) have also been
implemented by a number of banks.
Numerous local initiatives
The Group is also involved in protecting the
environment through the numerous efforts
supported by the Banque Populaire banks in their
region. Each year, Banque Populaire Côte d’Azur
and Banque Populaire Provençale et Corse team
up with the Pavillon Bleu (Blue Flag) initiative to
award a prize for environmental education.Banque
Populaire d’Alsace organizes the Trophées de
l’Environnement environmental awards in collaboration with CASDEN Banque Populaire. Banque
Populaire des Alpes and Banque Populaire Loire
et Lyonnais have together signed a partnership
agreement with Rhônalpénergie-Environnement
to promote use of renewable energies among
schoolchildren and local authorities. Of the
projects undertaken in 2006,one of the most notable
is the launch by Banque Populaire du Sud-Ouest
of the PROVair competition, recognizing environmentally-friendly projects by craftsmen in the
Aquitaine region of France.
* French environment and energy management agency (Agence de
l’Environnement et de la Maîtrise de l’Energie).
Solidarity is one of the intrinsic values of the Banque
Populaire Group. By putting its values and know-how into
practice, it is involved in micro-loans on a day-to-day basis
for both professional and social projects, as well as solidaritybased finance.
Volunteers to
support skills
development
In May 2006, the Banque
Populaire Group and ADIE*
signed a partnership
agreement to provide
voluntary guidance for
entrepreneurs. The aim of this
innovative project is to
provide entrepreneurs
supported by ADIE with the
help and expertise of the
Banque Populaire banks'
member-stakeholders. Six
banks provided the first
guidance sessions in regions
where ADIE has the fewest
volunteers: Paris and the
surrounding area, Alsace,
Lorraine, Champagne,
Massif Central and the
north of France.
Micro-loans:
innovative projects
Solidarity-based finance:
a leading role
Supporting entrepreneurship by vocation, the
Banque Populaire Group has partnered ADIE*,
which provides support and assistance for business start-up owners excluded from traditional
borrowing channels. It is the No. 1 lender with
a total credit line of over B5 million. In order
to enhance and build on its efforts, in 2006
the Group launched a voluntary guidance program for entrepreneurs financed by ADIE, with
the active suppor t of the Banque Populaire
regional banks and their member-stakeholders
(see inset).
According to the Finansol survey, the Banque
Populaire Group confirmed its leading position in solidarity-based finance in 2006.
Several Group entities are among the leaders
in the sector, with assets under management of
B382 million.Crédit Coopératif offers the widest
range of solidarity-based savings products (deposit
accounts,mutual funds and current accounts etc.).
It is also very active in solidarity-based investment, the purpose of which is to provide capital for solidarity-based companies.
The Banque Populaire Group has also contributed to the development of a new form
of “social” micro-loan, introduced in 2005
under the aegis of the French government,
with the aim of supporting the integration of
low-income individuals.The Group was one of
the first banks to benefit from the Social Cohesion Fund created for this purpose. In 2006, it
initiated a pilot distribution project for social
micro-loans involving Crédit Coopératif, Banque
Populaire des Alpes, Banque Populaire Occitane and Banque Populaire Provençale et
Corse.
Natixis, via its subsidiaries Natixis Asset Management and Natixis Interépargne,is a market leader
in solidarity-based employee savings (assets under
management of B149 million** at end-2006,
representing market share of 55%). It is also a
key player in socially responsible investment,with
a broad range of funds covering all asset classes
(equities, bonds and money market).
*The French association for the right to economic initiative
(Association pour le Droit à l’Initiative Economique)
** Finansol 2006 survey
Solidarity
25
26
Patronage: a long-term
commitment
The Banque Populaire Group is increasing its efforts in terms of
patronage and, more generally, solidarity-based sponsorship.
It supports cultural, social and environmental projects, all of
which are in keeping with the Group's core values and look to
the future.
Group patronage
projects: a positive
outcome
Thanks to the efforts of the
Banque Populaire Group
Foundation and the
involvement of the Banque
Populaire banks, over the
period from 2002 to 2006,
the Group's patronage
policy provided support for
67 musicians, 90 disabled
people and 30 “maritime
heritage” projects. This
corresponds to a total of
187 beneficiaries,
representing a total
amount of €4.3 million.
A foundation to support
personal projects
Exemplary regional
sponsorship projects
The Banque Populaire Group Foundation –
a shared project of all of the Group’s entities –
provides support in three areas: culture, supporting young musicians (classical musicians and
composers); solidarity, providing support for
young people with physical disabilities to help
with their integration; the environment, with the
protection and renovation of France's aquatic
and maritime heritage. Over 350 new talents
and personal projects have received support
from the Foundation since it was created in
1992. It provides long-term support, as prizewinners can be assisted for three consecutive years.
In addition to the Group’s patronage projects,
the Banque Populaire banks also support a
number of solidarity and local projects on a
regional level. For the last four years, they have
supported the Acteurs d'Urgence mobile exhibition organized by Médecins Sans Frontières
(MSF) as part of its efforts to provide information about emergency situations around the
world such as famines and epidemics.
The Banque Populaire banks and member-stakeholder clubs are closely involved in the
Foundation's activities on a regional level. This
has been supported by the creation of a network of correspondents within the Group’s
various entities, resulting in an increasing number
of applications to the Foundation, particularly in
the area of aquatic and maritime heritage.
In the area of culture, Banque Populaire du
Nord and Banque Populaire Atlantique are well
known for their support of the contemporary
arts, while Banque Populaire Val de France supports musical events such as the Maisons-Laffitte
and Versailles jazz festivals.
Another example of the Group’s commitment to
the values of humanism and solidarity is Banque
Populaire Provençale et Corse’s support of the
regional centre for the fight against cancer in 2006,
financing a new transplant and cell therapy unit.
For the last 17 years, the Banque Populaire Group has been
one of the most active partners of the world of sailing. In
2006, it further reinforced its involvement on both a local and
national level in the development of a sport that perfectly
illustrates its values.
Extensive media
coverage
Sailing is the sixth most
broadly covered sport in the
media, taking up 5.42%*
of editorial space dedicated
to sport in the French media
(excluding the broadcasting
of events). The impact
of this media presence is
reinforced by the direct
association between the
sponsor's brand and the
boat to which it gives its
name. In addition, media
coverage provides many
opportunities to display the
group's logo, directly
boosting the brand's
reputation.
A year of challenges
A manifold partnership
In terms of competition, 2006 was a successful
year.After winning the ORMA world championship in 2005, the Banque Populaire Trimaran, skippered by Pascal Bidégorry, came second in the
prestigious Route du Rhum race. Meanwhile, the
Figaro Banque Populaire, skippered by Jeanne
Grégoire and Gérald Véniard, came third in the
Transat AG2R.The Group and Banque Populaire
de l’Ouest are also continuing to sponsor Faustine
Merret, the Athens Olympics windsurfing mistral
champion, in her bid to win another title at the
Beijing Games in 2008. Similarly, Xavier Rohart,
who won bronze in the Star class in 2004, is sponsored by Banque Populaire Provençale et Corse.
As official partner of the French Sailing
Federation (FFV), the Banque Populaire Group is
involved in all areas of training and practice of sailing as a sport, from initiation to competition,
throughout France. Since 2000, it has provided
5,000 branded sails, 5,000 life jackets and 400
boats for French clubs and sailing schools. It has
made a commitment to provide financing for
equipment required by clubs every year until
2008.The Banque Populaire banks are entering
into an increasing number of national agreements and supporting regional leagues and
departmental committees.They therefore sponsor around 100 sailing events all over France.
Thanks to these performances, the Banque
Populaire Group reached a new milestone in
2006 in its commitment to the building of a maximultihull trimaran: the Maxi Banque Populaire V.
From winter 2008-09, this giant of the ocean will
aim to beat some of the most legendary team
records, such as the Jules Verne Trophy, the North
Atlantic race and the Pacific race.
As partner of the Eric Tabarly association since
2003, the Banque Populaire Group is involved
in the maintenance of the mythical Pen Duick
fleet, encouraging the creation of the Cité de la
Voile Eric Tabarly in Lorient, due to open in
autumn 2007.
* Source:TNS Sport – December 2005.
Sponsoring: supporting
a passion
27
Both local
28
and powerful.
29
The Group is founded on a solid organizational structure, based on the complementarity
of its three dimensions. It has a cooperative dimension with the Banque Populaire
banks, the Group's parent companies and key players in the local economy. It also has
a federal dimension with Banque Fédérale des Banques Populaires, the central body of
the network of Banque Populaire banks and Natixis jointly with CNCE. Finally, it has a
listed-company dimension via its listed vehicle Natixis, a joint subsidiary between the
Banque Populaire Group and the Caisse d’Epargne Group.
ORGANIZATION
Collective dynamic
Solid cooperative banks with
close relations with their customers
Cooperative, socially aware and with a strong regional presence, the Banque
Populaire banks play a key role in the Group's regional footing. They are loyal
to their original business and ensure a high standard of banking relations with
customers on a day-to-day basis, playing an active role in the economic development of the region.
30
The strength of the Banque Populaire banks lies in the desire of
small entrepreneurs to control their own future, the driving force
behind their creation. As cooperative companies, they are owned
by their member-stakeholders, which totaled 3,200,000 at the end
of 2006.The Banque Populaire Group currently comprises 18 Banque
Populaire regional banks, CASDEN Banque Populaire – the partner
of choice for employees of the French education, research and
culture systems - and Crédit Coopératif – a key player in the social
and solidarity-based economy. Crédit Maritime, which has a strong
presence among small businesses, companies and personal
customers in the marine industries, is affiliated to Banque Fédérale
des Banques Populaires and has been merged with the Banque
Populaire banks in coastal areas.
KEY FIGURES
20 Banque Populaire banks
2,880 branches
A strong regional footing
Right from the outset, all the Banque Populaire banks have developed a strong regional focus. For them, being a regional bank goes
much deeper than simply providing services in a particular geographical area. It means being fully involved in and committed to developing the regional economy and dedicated to serving the local community.The chairmen and directors of the Banque Populaire banks
are central to this unique relationship, providing a local presence and
solidarity on the ground. Drawing on the strengths of their region,
they have close ties with local socio-professional and consular bodies, in many cases serving on their boards. Through their strong
regional involvement, the Banque Populaire banks gain an in-depth
understanding and knowledge of the local economy, helping them
reconcile the interests of their local environment with those of
their customers, member-stakeholders and employees.
The local bank
For the Banque Populaire banks, local presence is key to their
commercial relations.This local presence is made possible on a dayto-day basis by the robust growth of the branch network (77 net
new branches in 2006) and significant development of multi-channel services (internet, telephone, SMS etc.). It is founded on the
constant desire to establish long-term relationships with customers,
taking account of their situation and all of their projects. In order to
provide the best response to their customers’ requirements, the
Banque Populaire banks have increased their capacity in all areas, in
particular wealth management, project finance and insurance.
Call me “Occitane”
In order to adapt to the new challenges of
the “Europe of regions”, the Banque
Populaire regional banks have taken the
initiative to merge over recent years,
reducing the total number of banks from 30
in 1999 to 18 at the end of 2006. The
creation of leading regional banks enables
them to provide better services for the
customers, guarantee a more solid financial
basis, gain market share and offer new
career opportunities for employees.
Following Banque Populaire du Sud in
2005, the new Banque Populaire Occitane
was formed in 2006 from the merger
between Banque Populaire
Toulouse-Pyrénées and Banque
Populaire Occitane.
Banque Populaire banks
11
15
5
5
15
2
9
13
4
8
6
10
31
1
17
12
14
16
7
14
1
2
3
4
5
6
7
8
9
10
BANQUE POPULAIRE DES ALPES
BANQUE POPULAIRE D’ALSACE
BANQUE POPULAIRE ATLANTIQUE
BANQUE POPULAIRE BOURGOGNE FRANCHE-COMTÉ
BRED BANQUE POPULAIRE (1)
BANQUE POPULAIRE CENTRE ATLANTIQUE
BANQUE POPULAIRE CÔTE D’AZUR
BANQUE POPULAIRE LOIRE ET LYONNAIS
BANQUE POPULAIRE LORRAINE CHAMPAGNE
BANQUE POPULAIRE DU MASSIF CENTRAL
11
12
13
14
15
16
17
18
19
20
BANQUE POPULAIRE DU NORD
BANQUE POPULAIRE OCCITANE
BANQUE POPULAIRE DE L’OUEST
BANQUE POPULAIRE PROVENÇALE ET CORSE
BANQUE POPULAIRE RIVES DE PARIS
BANQUE POPULAIRE DU SUD
BANQUE POPULAIRE DU SUD-OUEST
BANQUE POPULAIRE VAL DE FRANCE
CASDEN BANQUE POPULAIRE (2)
CRÉDIT COOPÉRATIF (2)
(1) BRED Banque Populaire is also present in the French overseas departments and territories of Martinique, Guadeloupe, French Guyana, Mayotte and Reunion.
(2) Banque Populaire banks with national coverage.
18
ORGANIZATION
3
End-2006 figures, directors in office as at March 1, 2007
1
BANQUE POPULAIRE
DES ALPES
2
Chairman
JEAN CLOCHET
Chief Executive Officer
LAURENT WORBE
Regulatory capital
Net banking income
Net income
108,409
1,534
153
€750 million
€244 million
€43 million
www.alpes.banquepopulaire.fr
4
Number of member-stakeholders
Number of employees
Number of branches
Regulatory capital
Net banking income
Net income
5
Chairman
JEAN-PHILIPPE GIRARD
BERNARD JEANNIN
76,022
1,354
100
€552 million
€190 million
€31 million
142,630
1,828
178
€1,010 million
€330 million
€65 million
BRED
BANQUE POPULAIRE (2)
www.bpbfc.banquepopulaire.fr
Regulatory capital
Net banking income
Net income (group share)
88,317
1,808
154
€861 million
€269 million
€45 million
6
BANQUE POPULAIRE
CENTRE ATLANTIQUE
Chairman
JACQUES RAYNAUD
GONZAGUE DE VILLÈLE
Number of employees
Number of branches
Regulatory capital
Net banking income
Number of employees
Number of branches
www.atlantique.banquepopulaire.fr
Chairman
STÈVE GENTILI
JEAN-MICHEL LATY
Number of employees
Number of branches
BANQUE POPULAIRE
ATLANTIQUE (1)
Chairman
JEAN-PIERRE CAHINGT
YVES GEVIN
www.alsace.banquepopulaire.fr
BANQUE POPULAIRE
BOURGOGNE
FRANCHE-COMTÉ
Regulatory capital
Net banking income
Net income
3
Chairman
THIERRY CAHN
DOMINIQUE DIDON
Number of employees
Number of branches
32
BANQUE POPULAIRE
D’ALSACE
109,158
3,410
310
€1,850 million
€777 million
€216 million
www.bred.banquepopulaire.fr
Number of employees
Number of branches
Regulatory capital
Net banking income
Net income
69,449
1,004
103
€414 million
€145 million
€20 million
www.centreatlantique.banquepopulaire.fr
Unless stated otherwise, the financial data given above correspond to individual company data for the Banque Populaire banks and company or consolidated regulatory capital (under French
GAAP) include general banking reserves.
(1) Consolidated data (French GAAP)
(2) Consolidated data (IFRS)
Full-time equivalent employees (permanent +temporary)
8
Chairman
BERNARD FLEURY
JEAN-FRANÇOIS COMAS
50,191
1,148
95
€344 million
€160 million
€20 million
www.cotedazur.banquepopulaire.fr
10
BANQUE POPULAIRE
DU MASSIF CENTRAL
Regulatory capital
Net banking income
Net income
65,246
1,252
101
€557 million
€193 million
€26 million
www.loirelyonnais.banquepopulaire.fr
BANQUE POPULAIRE
DU NORD (1)
69,414
911
86
€378 million
€129 million
€20 million
www.massifcentral.banquepopulaire.fr
Regulatory capital
Net banking income
Net income
€1,000 million
€294 million
€38 million
www2.bplc.fr
BANQUE POPULAIRE
OCCITANE
Chairman
MICHEL DOLIGÉ
ALAIN CONDAMINAS
Number of employees
Number of branches
Regulatory capital
Net banking income
153,101
1,655
139
Number of employees
Number of branches
12
Chairman
JACQUES BEAUGUERLANGE
GILS BERROUS
Number of employees
Number of branches
BANQUE POPULAIRE
LORRAINE CHAMPAGNE
Chairman
RAYMOND OLIGER
JACQUES HAUSLER
Number of employees
Number of branches
11
Chairman
DOMINIQUE MARTINIE
CHRISTIAN DU PAYRAT
Regulatory capital
Net banking income
Net income
9
Chairman
HERVÉ GENTY
OLIVIER DE MARIGNAN
Number of employees
Number of branches
Regulatory capital
Net banking income
Net income
BANQUE POPULAIRE
LOIRE ET LYONNAIS
71,239
1,128
91
€422 million
€153 million
€16 million
www.nord.banquepopulaire.fr
Number of employees
Number of branches
Regulatory capital
Net banking income
Net income
133,676
2,332
215
€1,132 million
€381 million
€92 million
www.occitane.banquepopulaire.fr
ORGANIZATION
BANQUE POPULAIRE
CÔTE D’AZUR
33
7
End-2006 figures, directors in office as at March 1, 2007
13
BANQUE POPULAIRE
DE L’OUEST (1)
14
Chairman
PIERRE DELOURMEL
YVES BREU
Chairman
JEAN-LOUIS TOURRET
FRANÇOIS-XAVIER DE FORNEL
Number of employees
Number of branches
34
Regulatory capital
Net banking income
74,094
1,807
132
€757 million
€260 million
€34 million
www.ouest.banquepopulaire.fr
16
Number of employees
Number of branches
Regulatory capital
Net banking income
Net income
17
Chairman
CLAUDE CORDEL
FRANÇOIS MOUTTE
44,141
806
82
€333 million
€117 million
€24 million
BANQUE POPULAIRE
DU SUD-OUEST (1)
154,260
1,911
143
€869 million
€309 million
€49 million
www.sud.banquepopulaire.fr
335,598
2,852
210
€1,211 million
€482 million
€72 million
Regulatory capital
Net banking income
Net income
www.rivesparis.banquepopulaire.fr
BANQUE POPULAIRE
VAL DE FRANCE (1)
Chairman
JEAN-PIERRE TREMBLAY
YVAN DE LA PORTE DU THEIL
Number of employees
Number of branches
Regulatory capital
Net banking income
BANQUE POPULAIRE
RIVES DE PARIS
Number of employees
Number of branches
18
Chairman
FRANCOIS DE LA GIRODAY
FRANCIS THIBAUD
Number of employees
Number of branches
15
Chairman
MARC JARDIN
JEAN CRITON
www.provencecorse.banquepopulaire.fr
BANQUE POPULAIRE
DU SUD (1)
Regulatory capital
Net banking income
BANQUE POPULAIRE
PROVENÇALE ET CORSE
74,816
1,124
102
€436 million
€174 million
€29 million
www.sudouest.banquepopulaire.fr
Number of employees
Number of branches
Regulatory capital
Net banking income
137,809
2,345
209
€1,293 million
€364 million
€72 million
www.bpvf.banquepopulaire.fr
Unless stated otherwise, the financial data given above correspond to individual company data for the Banque Populaire banks and company or consolidated regulatory capital (under French
GAAP) include general banking reserves.
(1) Consolidated data (French GAAP)
(2) Consolidated data (IFRS)
Full-time equivalent employees (permanent +temporary)
Chairman
PIERRE DESVERGNES
CRÉDIT
COOPÉRATIF (1)
Chairman *
JEAN-CLAUDE DETILLEUX
PHILIPPE JEWTOUKOFF
Number of employees
Number of branches
Regulatory capital
Net banking income
20
1,091,949
454
1
€1 302 million
€186 million
€48 million
www.casden.banquepopulaire.fr
Number of employees
Number of branches
Regulatory capital
Net banking income
40,094
1,702
98
€803 million
€308 million
€45 million
www.credit-cooperatif.coop
* At its meeting of January 25, 2007, the Board of Directors decided to separate the function of Chairman and Chief Executive Officer in accordance with the provisions of article 22 of the bylaws.
ORGANIZATION
CASDEN
BANQUE POPULAIRE (1)
35
19
BANQUE FÉDÉRALE DES BANQUES POPULAIRES
At the heart of the Group
In 2006, Banque Fédérale des Banques Populaires reasserted its role in bringing
together the Group's strengths and is directly responsible for the strategic direction,
coordination, supervision and management control of the entire Group.
The Group's central body
Owned by all of the Banque Populaire banks, Banque Fédérale
des Banques Populaires plays the role of supervisory body, controlling body and central body as required by French banking law. It manages cash surpluses at the Banque Populaire banks. With CNCE, it
is also shareholder and central body of Natixis, owning 34.4% of its
share capital.
36
Banque Fédérale des Banques Populaires operates as a fully-fledged
bank and is subject to French banking law. It is responsible for the
major strategic decisions of the Banque Populaire Group. Its Board
of Directors, the Group’s real governing body, is made up of the
Chairmen and Chief Executive Officers of the Banque Populaire
banks. The board’s decisions apply to the Group and all of its
components. Its Directors are elected by their peers for a renewable three-year term.
A unifying force in strategic projects
beginning of 2007, it finalized the acquisition of a 61% stake in
Foncia, market leader in residential property services in France.
Guaranteeing solvency, compliance
and risk control
Banque Fédérale des Banques Populaires guarantees the liquidity and solvency of the Banque Populaire network, as well as other
affiliated credit institutions.This guarantee is backed by the capital
of all of the banks covered through a mutual support mechanism.
Through this system, Banque Fédérale des Banques Populaires can
trigger the mutual support mechanism by calling on the other Banque
Populaire banks to contribute capital within the limits of their own
resources.
Banque Fédérale des Banques Populaires also manages and controls
the Group’s risks and is responsible for ensuring the Group’s compliance by adapting its organizational structure to new regulatory
requirements.
Banque Fédérale des Banques Populaires plays a pivotal role in the
Group’s initiatives, involved in the research and preparation for all
strategic decisions affecting the Group’s future. It is responsible for
strategic intelligence and planning and assesses acquisition or international expansion opportunities for the Banque Populaire Group.
Acquisition of Foncia
Since it was created in 2001, Banque Fédérale des Banques Populaires has acquired a majority stake in BICEC in Cameroon. It launched
the integration process of Crédit Coopératif, initiated the strategic
decision to acquire Coface and promoted a charter for cooperation between the Banque Populaire banks in coastal areas and Crédit
Maritime, an affiliate of Banque Fédérale des Banques Populaires.
In April 2007, the Banque Populaire Group
finalized the acquisition of a 61%
stake in Foncia, market leader in residential
property services in France, following
the protocol agreement signed
with founder Jacky Lorenzetti.
In 2006, it became a shareholder with a 24.5% stake and a member of the management board of VBI-Volksbank International AG,
the holding company of retail banks in Central and Eastern Europe
set up in partnership with ÖVAG (the central body of the Austrian
Volksbank network) and German central cooperative banks DZ
Bank and WGZ Bank. It also contributed to the Group’s continuing
expansion in Central Africa (Republic of Congo) via Banque Commerciale Internationale (BCI).
This partnership is fully in keeping
with the Group's strategy of developing its
services offering. It also enables the Group
to expand its customer base and ensure
greater loyalty by offering bancassurance
services to Foncia customers.
In France, via subsidiary i-BP – the Group’s IT platform – it continued with the migration of the Banque Populaire bank’s IT systems
(Banque Populaire du Sud and Banque Populaire Rives de Paris). It
continued with the activities of MA Banque, the joint venture
created with MAAF and MMA, which is now focused on two main
products: consumer loans and deposit accounts. It also represented
the Group’s interests on the national and international financial
markets (e.g.: SEPA, McDonough). Finally, at the end of 2006, Banque
Fédérale des Banques Populaires oversaw the creation of Natixis
with Caisse Nationale des Caisses d’Epargne (CNCE). At the
The Executive Committee
Francis Crédot
Alain David
Chantal Fournel
Bernard Gouraud
ORGANIZATION
Philippe Dupont
Michel Goudard
Bruno Mettling
Bérengère Grandjean
Olivier Haertig
Josiane Lancelle
Martine Lefebvre
Pascal Marchetti
Isabelle Maury
Annie de Paillette
Banque Fédérale des Banques Populaires’ Executive Committee
PHILIPPE DUPONT
MICHEL GOUDARD
BRUNO METTLING
FRANCIS CRÉDOT
ALAIN DAVID
CHANTAL FOURNEL
BERNARD GOURAUD
BÉRENGÈRE GRANDJEAN
OLIVIER HAERTIG
JOSIANE LANCELLE
MARTINE LEFEBVRE
PASCAL MARCHETTI
ISABELLE MAURY
ANNIE DE PAILLETTE
Chairman and Chief Executive Officer
Deputy Chief Executive Officer
Deputy Chief Executive Officer
Senior Executive VP, Legal Affairs and Compliance
Senior Executive VP, Finance
Senior Executive VP, Logistics and Organization
Senior Executive VP, Technologies
Senior Executive VP, Human Resources
General Secretary
Senior Executive VP, Strategy
Senior Executive VP, Group Internal Audit
Senior Executive VP, Business Development
Senior Executive VP, Group Risks Department
Senior Executive VP, Corporate Communications
37
NATIXIS
Natixis, a market leader
with international scope
38
Natixis is a key player in the banking sector in France and Europe. It has five core
business lines: corporate and investment banking, asset management, private
equity and private banking, services and receivables management.
Natixis also consolidates a portion of earnings from the retail banking activities of the Banque Populaire Group and the Caisse
d’Epargne Group.
With nearly 23,000 employees, a third of whom are based outside
France, Natixis operates in 68 countries and supports the development of large businesses, SMEs and institutions. It generates net
banking income of B7,322 million and net income attributable to
equity holders of the parent of B2,158 million.
Equally owned by the Banque Populaire Group and the Caisse
d’Epargne Group, each of which owns 34.4%, Natixis is listed on
Euronext Paris and is included in the CAC Next20 index.
Fédérale des Banques Populaires and Caisse Nationale des Caisses
d’Epargne each owns 34.4% of the bank’s share capital. German bank
DZ Bank and Italian bank Sanpaolo IMI are stable shareholders of
Natixis, owning 1.87% and 1.68% of share capital respectively.
Initial results
Natixis’s results attest to a year of strong growth in all areas of the
group, including retail banking, which contributed to earnings via
CCI certificates.
I
Strong business momentum with consolidated net banking
income up 22% and a sharp increase in revenues in two business
lines:
2006 highlights
- Corporate and Investment Banking: +27%
Creation of Natixis
- Asset Management: +23%
November 17, 2006 - The Banque Populaire Group and the Caisse
d’Epargne Group, having signed a protocol agreement on June 6,
2006, create Natixis.This joint subsidiary between the two groups
constitutes a vehicle for their ambitions in the areas of corporate
and investment banking and services. Natixis has a supervisory
board and a management board.
December 6,2006 - The market transaction launched on November
17 comes to an end and is a major success among both institutional
investors and private investors. After the transaction, Banque
I
High level of investment in development (creation of 1,418 jobs).
I
Pro forma net income up 25% before restructuring costs and
costs relating to the creation of Natixis.
A year of strong growth in all areas
Solid growth in net banking income
The strongest performing activities were corporate real estate financing, project financing, acquisition and LBO financing.
Natixis's performance in 2006
With net banking income up 22%,coupled with continuing low level
of NPL loans and satisfactory control of costs, Natixis delivered a
strong overall performance in 2006, with net income attributable
to equity holders of the parent of B2,100 million.
International financing (trade finance, international financial institutions, international corporates) and services (assistance for international corporate clients) saw robust growth, mainly thanks to a sharp
increase in loan origination, particularly among financial institutions.
Net banking income from core business lines totaled B7,510 million, up 23% compared with 2005, driven by high revenues in corporate and investment banking and asset management.
With assets under management of B583 billion (up 13%), Natixis
has confirmed its position as a major world player in asset management.The bank continued with its strategy of diversifying into
products generating higher margins, focusing in par ticular on
the development of alternative and structured investment products, for which assets under management increased by over
B5 billion.
Focus on Corporate and Investment Banking
(approximately 50% of net banking income from
core business lines)
The Corporate and Institutional Relations department remained
the main point of entry for commercial relationships for all business lines. Strong growth in finance leasing and cash management
activities was offset by the negative impact of continuing severe pressure on margins at constant credit quality.
In France, it benefited from the strong commercial momentum of
the Banque Populaire banks, with net new money driven primarily
by life insurance.
The Structured financing and Commodities department delivered
an excellent performance resulting from both firm commercial activity and more competitive offering along with more numerous
arranger mandates.
6,006
7,322
1, 921
In the United States, the popularity of the open architecture model
– combining a multi-specialist structure and a global distribution platform – was confirmed.
2,158
2,354
1,727
+22%
2006
2005
2005
+25%
2005
2006
2005
2006
2005
2005
+23%
NET BANKING INCOME
GROSS OPERATING INCOME (1)
NET INCOME
8.9%
13.9%
11.2
9.9
12.0%
12/31/06
+13%
12/31/05
2006
2005
2005
12/31/06
12/31/05
+1.9 pt
2005
8.5%
(1)
TIER ONE RATIO (2)
ROE (3)
TIER ONE CAPITAL
PRO FORMA INFORMATION
PRO FORMA INFORMATION
PRO FORMA - IN BILLIONS OF EUROS
(1) Excluding restructuring costs and costs relating to the creation of Natixis
(2) After deductions in accordance with CRD/Basel II
(3) Net income (excluding restructuring costs and costs relating to the creation of Natixis) divided by average book shareholders' equity
(2)
39
With solid economic fundamentals and a clear corporate governance
structure, Natixis is pursuing its strategic plan with determination.
ORGANIZATION
Focus on Asset Management (20% of net banking income
from core business lines)
NATIXIS
Five core business lines
Corporate and Investment Banking
Services
Natixis offers its customers – companies, institutional investors and
banks – a broad range of products and solutions, comprising primarily business loans, structured finance, capital market products
(fixed income, credit, forex, equities, commodities, cash and derivatives), payment products, lease financing and securitization, as well
as advisory and financial engineering services.
With nearly 4,200 employees, the Services division combines six
complementary and interactive business lines from both a commercial and technical viewpoint.
Financing and investment banking activities draw on the expertise
of all of Natixis’s business lines to create and implement addedvalue solutions.With over 120 branches worldwide, Natixis is able
to serve the needs of local clients.
I
No. 2 in France in real estate finance
I
No. 2 in France in primary corporate bond markets
I
No. 6 in Africa and the Middle East in trade finance
I
No. 7 in Europe in CDO issues (Collateralized Debt
Obligations)
I
No. 10 in the euro primary bond market
I
World top 10 in aircraft finance
Asset Management
40
The Asset Management division has developed expertise across a
broad range of products covering all asset classes, including money
market, bonds, equities, diversified, alternative and real estate assets.
It also offers structured and multi-manager investment. Its business
model is based on a structure grouping together multi-specialist
managers with the support of a global distribution platform serving retail, institutional and corporate clients.
I
No. 13 worldwide
I
No. 5 in Europe
I
No. 1 in asset management in France
Private Equity and Private Banking
The Private Equity and Private Banking division comprises Natixis’s
private equity and private banking activities.
Private equity is one of Natixis’s historic business lines, having operated in this market for 20 years through subsidiary Natixis Private
Equity (NPE). NPE is currently recognized as one of France’s market leaders in private equity for SMEs, with a portfolio of over 600
investments and assets under management of B3.2 billion in 2006.
Private banking covers three activities: wealth management, serving
customers with savings of over B1 million, private asset management for customers with assets of B150,000 to B1 million, and
fund management.
Four of these business lines – Insurance, Sureties and Financial
Guarantees, Consumer Finance and Employee Benefits Planning –
specialize in designing products sold primarily by the distribution
networks to their customers.
The other two business lines – Payments and Securities Services –
complement the Group’s payment processing services and financial instruments activities. All of these services are designed to
meet the specific expectations of each customer type (personal
customers, institutional clients, corporate clients and small business
clients). They are based on two core principles. Systems and processing are industrialized and pooled in order to provide performance and competitiveness for the distribution networks. Integrated
and open systems are favored in order to meet the requirements
of the European market.
I
No. 1 employee savings manager in France
I
No. 1 in guarantee insurance in France
I
No. 2 in retail custody services in France
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No. 3 electronic banking operator in France
I
No. 4 non-life bancassurer in France
I
No. 10 in institutional custody services in France
Receivables Management
The Receivables Management division combines the expertise of
Coface, Natixis Factor and GCE Affacturage. It enjoys a marketleading position in France and worldwide in all four business lines,
which enable companies to manage, protect and finance their
accounts receivable: company information, receivables management, credit insurance and factoring. It has developed an effective
multi-network strategy. Coface offers Receivables Management
solutions through its own network spanning 60 countries and
those of its partners in the CreditAlliance network, comprising
Insurance companies, banks and services companies. Natixis Factor
offers solutions through the Banque Populaire and Natixis networks as well as brokers, while GCE Affacturage uses the Caisse
d’Epargne and Banque Palatine networks.
I
No. 1 in receivables management in France
I
No. 3 factor in France
I
No. 7 factor worldwide
I
World No. 3 in credit insurance
I
World No. 6 in receivables management
I
World No. 7 in company information
THE GROUP WORLDWIDE
ORGANIZATION
Present in 71 countries
NATIXIS AND ITS SUBSIDIARIES AND AFFILIATES
OF THE BANQUE POPULAIRE GROUP
EUROPE
I
ROMANIA
I
PERU
I
MOROCCO
I AUSTRIA
I
RUSSIA
I
UNITED STATES
I
REPUBLIC OF CONGO
I
BELGIUM
I
SERBIA
I VENEZUELA
I
SENEGAL
I
BOSNIA-HERZEGOVINA
I
SLOVAKIA
AFRICA/ASIA-PACIFIC
I
SINGAPORE
I
BULGARIA
I
SLOVENIA
I ALGERIA
I
SOUTH AFRICA
I
CROATIA
I
SPAIN
I AUSTRALIA
I TAIWAN
I
CZECH REPUBLIC
I
SWEDEN
I
BENIN
I THAILAND
I
DENMARK
I
SWITZERLAND
I
BURKINA FASO
I TOGO
I
ESTONIA
I TURKEY
I
CAMEROON
I TUNISIA
I
GERMANY
I
UKRAINE
I
CHINA (P.R.)
I
I
HUNGARY
I
UNITED KINGDOM
I
EGYPT
I VIETNAM
I
UNITED ARAB EMIRATES
IRELAND
AMERICAS
I
INDIA
I
ITALY
I ARGENTINA
I
INDONESIA
I
KAZAKHSTAN
I
BRAZIL
I
IRAN
I
LATVIA
I
CANADA
I
ISRAEL
I
Natixis and its subsidiaries, including Coface
I
LITHUANIA
I
CHILE
I
IVORY COAST
I
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LUXEMBOURG
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COLOMBIA
I
JAPAN
Subsidiaries of Banque Fédérale
des Banques Populaires
I
NETHERLANDS
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COSTA RICA
I
KOREA
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Multiple offices
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NORWAY
I
ECUADOR
I
LEBANON
I
POLAND
I
MEXICO
I
MALAYSIA
I
PORTUGAL
I
PANAMA
I
MALI
To find out more, visit:
www.banquepopulaire.fr
41
Both efficient
42
and confident.
43
The strong performance of the Banque Populaire Group as a whole in 2006 related first
and foremost to its long-standing strategy of combining strong and balanced growth,
operating profitability which the Group has maintained at very high levels and, finally,
the ongoing strengthening of its financial structure, which on its own provides a solid
basis for long-term growth. This is possible thanks to a stable and flexible business
model and organizational structure.
Strong earnings momentum
FINANCIAL DATA
Banque Populaire Group:
business results and overview
The Banque Populaire Group delivered a strong performance in 2006, confirming the relevance of its strategic decisions. The Banque Populaire banks achieved earnings growth,
continuing with their strategy of winning new personal customers and confirming their commercial strengths in the small business and corporate markets.
Comparability of results
Accounting principles
The consolidated financial statements to December 31, 2006, and
December 31, 2005, were prepared in accordance with IFRS.
Changes in the scope
of consolidation
44
The key event of 2006 was the creation of Natixis, giving the
Banque Populaire Group a new dimension. In view of the changes
in its scope of consolidation, the Banque Populaire Group has presented its results on a pro forma basis, including Natixis proportionally consolidated at 34.4% in 2006 and 2005.All exceptional items
relating to the creation of Natixis have been eliminated.
The Group’s net banking income totaled B8,083 million, an
increase of 11%. All parts of the Group – the Banque Populaire
banks, subsidiaries and Natixis – contributed to this growth. The
balance between retail and wholesale banking activities was maintained within the new entity, with the Banque Populaire banks
accounting for 69% of consolidated net banking income.
Natixis’s contribution to net banking income totaled B2,516 million,
an increase of 25%, representing almost one-third of total net banking income. Retail banking, via the CCI certificates mechanism and
the distribution of Natixis products through the networks of the two
shareholders, made a significant contribution to Natixis’s revenues.
The Banque Populaire Group comprises 20 Banque Populaire banks:
18 Banque Populaire regional banks, CASDEN Banque Populaire and
Crédit Coopératif, as well as Crédit Maritime and mutual guarantee
companies. It also includes the 34.4% stake in Natixis.
I
Banque Populaire Group: business results
In billions of euros
2006 (1)
Net banking income
8,083
7,280
+11%
General operating expenses
-5,334
-4,792
+11.3%
Gross operating income
2,750
2,488
+10.5%
-308
-389
-20.9%
2,442
2,099
+16.3%
148
3
-1
117
51
2
2,592
2,269
-841
-750
1,751
1,519
-51
-32
1,700
1,487
Impairment charges and other credit provisions
Operating income
Share of income of associates
Gains or losses on other assets
Change in value of goodwill
Income before income tax
Income tax
Net income
Minority interests
Net income attributable to equity holders of the parent
(1) Pro forma
2005 (1)
% CHANGE
+14.2%
+15.2%
+14.3%
The cost/income ratio came to 66%, more or less stable (up 0.2 point)
compared with 2005.
Net income attributable to equity holders of the parent came to
B1,700 million, up 14.3%.
Gross operating income rose by 10.5% to B2,750 million.
The Banque Populaire Group’s statutory income(1) came to B3.3 billion, comprising profit on ordinary activities of B1.7 billion and capital
gains relating to the creation of Natixis of B1.6 billion.
Cost of risk fell by 20.9% to B308 million.
Operating income increased by 16.3% to B2,442 million, with
B782 million relating to Natixis.
The share of income of associates totaled B148 million compared
with B117 million (up 26%) in 2005.The tax charge increased by
12% to B841 million.
The Group confirmed its solid financial structure. At December 31,
2006, total regulatory capital stood at B20.4 billion, including Tier One
capital of B16.9 billion.The Tier One solvency ratio was 10.5%, one of
the highest in the eurozone.
(1) Statutory income is based on full consolidation of the Natexis Banques Populaires sub-group from January 1 to November 16, 2006, and proportional consolidation of the Natixis sub-group at
34.5% from November 17 to December 31, 2006.All costs, income and net capital gains arising from the creation of Natixis are included in statutory income, whereas they have been eliminated from
the pro forma results.
I
Financial structure
Tier One capital
Total regulatory capital
Tier One ratio
I
12/31/2006
12/31/2005
% CHANGE
16.9
20.4
14.4
19.3
+2.5
+1.1
10.5%
8.5%
Change in the number of active Banque Populaire Group employees(1)
12/31/2006 12/31/2005
Banque Populaire regional banks + CASDEN Banque Populaire
Crédit Coopératif
Crédit Maritime Mutuel
I-BP plateform
Other entities
Banque Populaire Group - excluding Natixis
Natixis (2)
(1) Total number of employees (temporary and permanent) expressed as full-time equivalent.
(2) The above table includes 100% of Natixis's employees.
29,744
1,702
961
541
914
1,131
34,994
21,138
29,428
1,628
984
510
849
870
34,269
19,719
Net income, before minority interests of B51 million, came to
B1,751 million, an increase of 15.2% compared with 2005.
45
General operating expenses amounted to B5,334 million, up
11.3% compared with 2005.
FINANCIAL DATA
Banque Populaire banks:
business results and overview
The “Banque Populaire banks” comprise 20 Banque Populaire banks: 18 Banque
Populaire regional banks, CASDEN Banque Populaire, Crédit Coopératif, as well as Crédit
Maritime Mutuel and mutual guarantee companies.
The pro forma financial statements below comprise the financial
statements of the Banque Populaire banks, their direct subsidiaries
and mutual guarantee companies, after adjustments for consolidation purposes under IFRS and without eliminating transactions with
Banque Fédérale des Banques Populaires.
Net banking income for the year totaled B5,578 million, an increase
of 6.1%. Excluding the effect of home purchase savings plans, net
banking income came to B5,542 million, an increase of 5.3%.
46
Net interest income increased by 3.4% as a result of the positive
impact of the increase in loan outstandings against the backdrop of
fiercer competition, particularly in home loans, despite unfavorable
interest rates, marked by flattening of the yield curve and higher
refinancing costs.
Fee and commission income rose by 11%, reflecting the strong
business momentum of the Banque Populaire banks, with 59% relating to the sale of products and 41% to account holding.
Operating expenses increased by 6.3% to B3,531 million. General
operating expenses were impacted by exceptional charges relating
in particular to the merger process and IT migration projects, which
are now close to completion.
I
Excluding exceptional items, general operating expenses increased
by 4.7%, reflecting continuing heavy investment in real estate, with
the opening of 77 branches to support the Group’s business
momentum, as well as in IT equipment. Payroll costs rose by 4.6%
as a result of recruitment relating to the expansion of the network
and an incentive-based remuneration policy and attempts to encourage staff loyalty, involving them in the development of the banks’
performance through profit sharing and incentive mechanisms.
Gross operating income rose by 5.7% to B2,047 million.
The cost/income ratio was 63.7% (excluding home purchase savings
plans), one of the lowest in the French retail banking industry.
Although down, impairment charges and other credit provisions still
represent a level of coverage that ranks among the best in the industry, thereby confirming the Group’s conservative provisioning policy.
Operating income rose by 11.4% to B1,767 million.
Net income attributable to equity holders of the Banque Populaire
banks rose by 9.5% to B1,199 million.
Banque Populaire banks: business results
In millions of euros
2006 (1)
2005 (1)
% CHANGE
Net banking income
5,578
5,257
+6.1%
General operating expenses
-3,531
-3,321
+6.3%
Gross operating income
2,047
1,936
+5.7%
Impairment charges and other credit provisions
Operating income
Net income attributable to equity holders of the parent
(1) Pro forma
-280
-350
-19.9%
1,767
1,199
1,586
1,095
+11.4%
+9.5%
Personal deposits
Business deposits
Total customer deposits
I
12/31/2005
% CHANGE
54.2
37.7
91.9
52
32.9
84.9
+4.2%
+14.6%
+8 %
47
Customer savings
Life insurance
Employee savings plans
Mutual funds
Other savings
Total
I
12/31/2006
12/31/2006
12/31/2005
% CHANGE
29.9
2
31.4
1.6
64.9
26.3
1.6
29.9
1.6
59.4
+14%
+25%
+5%
+4%
+9%
12/31/2006
12/31/2005
% CHANGE
58.5
46.9
3.3
108.7
51.4
42.6
2.7
96.7
+14%
+10%
+19%
+12%
Customer loans
Personal customers
Business customers
Other loans
Total
Customer deposits
I
Contacts
BANQUE POPULAIRE GROUP
Le Ponant de Paris
5, rue Leblanc, 75511 Paris Cedex 15
Tel.: (33) 1 40 39 60 00 - Fax: (33) 1 40 39 60 01
CORPORATE COMMUNICATIONS
Annie de Paillette
Federal Communications
Chloé Fontaine
Nathalie Portenguen
48
Press Relations
Victoria Eideliman
Virginie de La Serraz
relationspresse@bfbp.banquepopulaire.fr
Investor Relations
Pierre Jouffrey
communicationfinanciere@bfbp.banquepopulaire.fr
www.banquepopulaire.fr
The annual reports/registration documents of the Banque Populaire Group and Natixis, as well as Overview,
are available on the Group’s website in the « COMMUNICATION FINANCIÈRE » section.
Printed using vegetable inks by IMP Graphic (Cosne-sur-Loire, France), an Imprim’vert printer (environmentally-friendly charter) and ISO 14001 certified (environmental
certification).The paper used for the cover is Invercote Créato Mat (Iggesund Paperboards, Sweden) and holds ISO 14001 and EMAS certification.The paper used for the
inside pages is Reprint (Dalum, Denmark) made from 50% FSC certified virgin fiber and 50% recycled paper fibers (post-consumer paper de-inked using ecological
methods).This paper holds ISO 14001 and EMAS certification and has been awarded the “Nordic Swan” label.
Published by Banque Fédérale des Banques Populaires / Direction Communication Corporate Design-Production avant garde - Tel.: +33 01 45 74 61 61 Printing IMP Graphic Photo credits Gettyimages - F. Delauney, M. Labelle, G. Sorel,Y. Zedda / BFBP
- F.Vallon / Natixis

Overview 2007 - Banque Populaire Group

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