registration document & annual financial report

170 Pages·2017·7.79 MB·English

registration document &
annual financial report
2016
Building the future in a changing world
Chairman’s
statement
Our businesses are changing and CIC is transforming
In a rapidly changing environment, the group continued to develop its commercial activity in 2016,
offering its 4.9 million customers banking products, insurance products and services that specifically
meet their evolving needs. At a time of low interest rates, regulatory pressure and heightened competition,
this strategy translates into significant growth in loans and deposits, as well as in insurance, telephone
services and remote surveillance.
The CIC group ends the year with net income of €1.361 billion, an increase of 21.8%.
It continues to rely on the latest technology to make customer relationships, whether physical
or digital, the focal point of its strategy. For example, in 2016 the group redesigned its website to offer
a more functional customer area and a straightforward line of products and services tailored to all
activities.
As a bank for self-employed professionals and corporates – one in three companies is a customer –
through its development strategy the CIC group continued to support the vitality of the real economy
in an effort to boost growth, productivity, profitability and employment simultaneously. For example,
thanks to this policy the "corporate" branches offer health insurance policies that do not require their
employees to pay their healthcare costs in advance.
As a bank for private individuals and associations, the CIC group continued to support the development
of projects rooted in its customers’ day-to-day lives and in today's and tomorrow's society by developing
a comprehensive range of products and services for every stage of life. For example, the launch of
“CIC Auto” in 2016 allows customers to take advantage of negotiated prices at the time of purchase
from a network of dealers and provides financing and insurance options.
What sets the CIC group apart is its ability to successfully combine technological innovation and respect
for the customer, always with the same goal: to build for the long term in a way that benefits the real
economy. To achieve this, it draws on the commitment and professionalism of its employees, who
support their customers every day by using technology to build a relationship of trust.
It also owes its success to the fact that it is part of a solid group - the Crédit Mutuel group – which was
ranked as the number one French bank and the fourth best bank in the euro zone following the stress
tests (unfavorable scenario) conducted by the European Central Bank in 2016 for its CET1 solvency
ratio.
Thanks to the commitment and competence of its employees, its capacity for technological innovation
that supports the real economy and the vitality of the regions and its ability to maintain strong relations
with its customers in a complex world, the CIC group is looking to the future with confidence and
determination.
This registration document was filed with the Autorité des Marchés Financiers (AMF) on April 19, 2017, pursuant to Article 212-13 of the AMF’s
Nicolas Théry
General Regulations. It may be used in support of a financial transaction if it is accompanied by a memorandum approved by the AMF.
This document was prepared by the issuer and is binding on its signatories .
ConTEnTs
6 CIC profile
7 Key consolidated figures
8 Simplified organization chart
1 4
10 presentation oF CiC 260 Corporate soCial responsibility
12 Review of operations 262 Chairman's and CEO's statement
29 Regional and international directory 264 General information
32 History of CIC 291 Indicators
33 Capital 301 Cross-reference table with the information required by Article 225 of
the Grenelle II Act on employment, environmental and social matters
36 Market for the company's shares
304 Report of the independent third party on the consolidated social,
39 Statutory Auditors’ report on the interest payable
employment and environmental information presented in the
on non-voting loan stock
management report
2
40 Corporate GoVernanCe
5
306 leGal inForMation
42 Board of directors
308 Shareholders
52 Compensation of corporate officers
318 Statutory Auditors’ report on the issue of shares
54 Variable compensation of "risk takers”
and various negotiable securities with and/or without
56 Report of the Chairman of the Board of Directors to the shareholders' preferential subscription rights
general meeting of May 24, 2017 on the preparation and organization
319 Statutory Auditors’ report on the capital increase reserved for members
of the work of the Board and on internal control procedures
of an employee savings plan
68 Statutory Auditors’ report pursuant to Article L. 225-235 of the French
320 General information
Commercial Code on the report of the Chairman of the Board
of Directors of CIC
70 Statutory Auditors’ special report on regulated agreements and
third-party commitments 6 322 additional inForMation
324 Documents available to the public
324 Financial communication
3 72 FinanCial inForMation 325 Person responsible for the registration document
325 Statutory auditors
74 Consolidated financial statements
326 Cross-reference table
218 Statutory Auditors’ report on the consolidated financial statements
329 Glossary
219 Company financial statements
258 Statutory Auditors’ report on the annual financial statements
4 5
contents
CIC PRoFIlE KEy ConsolIDATED FIGuREs
Capital in € millions
2016 2015 2014
net banking income 4,985 4,782 4,410
operating income after provisions 1,729 1,570 1,293
net income attributable to owners
1,352 1,111 1,116
of the company
Cost/income ratio(1) 61.6% 62.8% 66.0%
4,953,615 customers*, including: overheads as a percentage of net banking income.
4,029,786
6
individuals 245,679 253,976 269,31 12,266 13,133 14,117 10.3% 9.3% 10.6% 11.5% 11.7% 12.5%
A leading bank both in France 101,493
and around the world, the CIC associations
group promotes a universal
banking model that combines
692,160
businesses covering all areas
self-employed
of finance and insurance,
2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016
professionals
financial solidity and TOTAL ASSETS SHAREHOLDERS’ EQUITY RETURN ON EQUITY(1) SOLVENCY RATIO
(incl. non-controlling interests) COMMON EQUITY
a long-term growth strategy.
TIER 1 - BASEL 3
130,176
Through its commitment corporates
to the economy, society and 3 2 7 6
tshtreo enngv ciroornpmoreantet agnodv ewrinthan ac e 1 9,991 employees** 146,739 157,166 166,06 21,889 129,958 138,77 245,505 259,75 258,66 34,737 36,575 37,876
1
system, CIC acts as a
responsible bank.
1,982
branches in France
Its operations are organized
into five businesses:
4
- retail banking 2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016
foreign branches
- financing activities, LENDING CUSTOMER SAVINGS MANAGED AND LIFE INSURANCE(3)
TO CUSTOMERS DEPOSITS HELD IN CUSTODY(2)
- capital markets activities,
- private banking, 34
- private equity. foreign representation offices (1) Net income attributable to the company as a percentage of opening equity less dividends paid.
(2) Managed savings (life insurance, employee savings plans and UCITS) and customers’ securities in custody.
(3) Month-end outstandings.
18
foreign private banking offices
source: consolidated financial statements.
Figures as of December 31, 2016.
* Banking network.
** Full-time equivalent.
6 7
PRoFILe AnD KeY FIGURes
SIMPLIFIED ORGANIZATION CHART
sIMPlIFIED oRGAnIzATIon ChART
The percentages indicate the portion of the entity controlled by CIC as defined under Article L.233-3 of the French Commercial
Code (Code de Commerce). Crédit Mutuel also holds shares in companies not controlled by CIC (i.e. in which ownership is less
than 50%). They are therefore controlled by the Crédit Mutuel group in accordance with the terms of the same article of the
French Commercial Code.
CiC comprises:
• CIC (Crédit Industriel et Commercial), the holding company and head of the bank network, which also acts as the regional
CIC
bank for the Greater Paris region and through which investment, financing and capital markets activities are carried out;
• five regional banks, each of which serves a clearly defined region;
BANKING • specialist entities and service companies serving the whole group.
100% 100% 100% 100% 100%
NETWORK
CIC
CIC CIC CIC CIC Lyonnaise
Crédit Mutuel associated companies by business:
Nord Ouest Ouest Sud Ouest Est de Banque
PRIvATE SPECIALIZED BUSINESSES INSURANCE SHARED SERvICE COMPANIES
100% 100% 100%
BANKING CM-CIC Asset Management: 76.5% Groupe des Assurances Euro Information: 87.5%
CM-CIC Bail: 0.8% du Crédit Mutuel: 79.5%
CM-CIC lease: 45.9%
Banque Banque CIC Banque
CM-CIC Factor: 4.5%
Transatlantique Suisse de Luxembourg
PRIvATE
100%
EQUITY
CM-CIC
Investissement
SPECIALIZED
23.5% 99.9% 99.2%
BUSINESSES
CM-CIC Asset CM-CIC épargne CM-CIC
Management Salariale Bail
54.1% 95.5% 100%
CM-CIC CM-CIC CM-CIC
Lease Factor Aidexport
INSURANCE
20.5%
Groupe
des Assurances
du Crédit Mutuel
SHARED
12.5% no capital no capital
SERvICE
COMPANIES
Euro GIE CM-CIC GIE CM-CIC
Information Titres Services
8 9
sImPLIFIeD oRGAnIzAtIon chARt
Presentation
of CIC
1
12 reView oF operations
12 Retail banking
19 Financing activities
22 Capital markets
25 Private banking
28 Private equity
29 reGional and international direCtory
32 History oF CiC
33 Capital
36 Market For tHe CoMpany's sHares
36 Shares
37 Share performance
37 Dividends and dividend policy
39 statutory auditors’ report on tHe interest
payable on non-VotinG loan stoCk
10 11
PRESENTATION
BusInEss lInEs
RETAIL BANKING(1)
Retail banking markets
Retail banking continued to grow in 2016. With net banking income
Personal banking customers 2016
of €3.5 billion, operating expenses of €2.272 billion and net provision
New customers
allocations/reversals for loan losses of €164 million, retail banking
The personal banking customers segment currently has
posted pre-tax income of €1.204 billion.
4,029,786 customers (up 1.3%), an increase of 50,726 customers.
Those aged 18 to 25 accounted for the highest rate of growth at
3.4%.
retail banking: Change 2015 Change* CIC: A NETwORK THAT OFFERS
2016 2015 Customer deposits
key figures (€ millions) 2016/2015 restated* 2016/2015 MULTIPLE OPTIONS
savings balances grew by €401.7 million or 1.3%. overall savings
net banking income 3,500 3,514 (0.4%) 3,494 0.2%
book balances rose by 0.7% to €18.9 billion – after decreasing Nearly 2,000 points of sale at end-2016
General operating expenses (2,272) (2,254) 0.8% (2,254) 0.8% by 2.3% in 2015 – thanks to an increase in livret A balances of
3% (i.e. €161.2 million). home savings accounts continued to Service contracts and remote banking:
operating income before provisions 1,228 1,260 (2.5%) 1,240 (1.0%)
grow: up 13.1% for a net change in outstandings of €1 billion. more than 2.2 million users
net provision allocations/reversals (164) (194) (15.5%) (194) (15.5%) net outflows of €715 million were recorded on term deposits. The total number of personal contracts in all markets was
for loan losses sight deposits continued their 2015 growth with an increase of 1,600,838 (+5.4%). This increase reflects the success
Income before tax 1,204 1,202 0.2% 1,182 1.9% €1.5 billion (13.8%). of the global contract offered to customers and of the
net income attributable to owners “adjustable” contract offering (+222,385 subscribers in 2016).
826 790 4.6% 778 6.2% Managed savings
of the company Moreover, the appropriateness of the multi-channel
securities account outstandings fell by 8.4% to €9.2 billion. customer relations approach resulted in a very sharp
* offsetting of €20 million in capital gains on securities realized by CIC EsT. All securities accounts decreased by 10.9%, with the exception increase in the number of people enrolled in remote
source: consolidated financial statements. of share savings plans which were down 4.3%. banking. Currently, 2.2 million people (+8.8%) have a
life insurance outstandings rose by 3% to €28.3 billion, with remote banking services contract.
a 6.7% increase in Euro-ul policies versus a 3.4% decrease
Retail banking, CIC’s core business, continued to grow in 2016 In property insurance, the number of policies grew by 11.7%, in euro policies. ATMs: 2,377 ATMs and 1,342 dedicated
and today has 4,953,615 customers. of which 11.3% were for auto and 6.7% for home. deposit terminals
Lending
The number of mobile phone contracts reached 447,421, In 2016, more than 103 million transactions were completed
The number of customers in the banking network, which consists
an increase of 1.8%. outstanding home loans rose by 4.5% to €49.2 billion. This increase at the CIC group’s ATMs, including 68 million withdrawals
of 1,982 points of sale, increased by 86,441 or 1.8%.
was mainly due to conventional loans given that home savings and 21 million deposits.
service activities associated with electronic payment systems loans were down by 30.7%. Touch screen ATMs(2) accounted for 43% of the ATMs in
The network’s total commitments increased by 4.2%, new
also posted strong growth: new lending fell by 18.6% compared to 2015, which had been an place at the end of 2016.
investment loans by 4.9%, new consumer loans by 5.1% and
• number of cards in circulation up by 3.9% including high unusual year with a 91.3% increase following the repayments Thanks to recent technological advances, CIC's ATMs have
new lease financing by 12%. value added cards for individuals up by 4.5%; and renegotiations of real estate loans resulting from the been greatly enhanced and now allow customers to view
decrease in interest rates. new lending in 2016 was significantly “prepaid card” transactions and access a cash deposit
Customer savings ended the year up by 5.3% thanks to home • number of active merchant payment terminals up by 4.6% to
higher than in 2014 (€10.2 billion versus €6.6 billion). solution with automatic bill counting.
savings accounts (up 13.3%) and customer deposits (up 25.1%). 133,994 units; These advances will also impact 2017 directly with the
The total amount of early repayments (€6.1 billion), although
• flow of card payments with merchants and corporates up by 6%. opening of the group's ATMs to cards associated with the
life insurance outstandings increased by 3.2%, with a 6.3% less than in 2015 (€8.4 billion), was higher than in 2014
JCB (Japan) network and the addition of Japanese and
(€4.5 billion).
rise in Euro-ul life insurance. (1) outstandings are cumulative average outstandings. Korean to the languages proposed to customers.
outstanding consumer loans and revolving credits rose
by 5.3% to €4 billion, thanks mainly to standby credits, which 2,386,689 bank cards held by individuals
reached €2 billion (up 15.5%).
The total number of cards for individuals increased to
2,386,689, including 392,029 high-end cards (+4.6%).
Service contracts and remote banking
cic.fr The total number of contracts was 1,374,947. This number Mobile phone service: 447,421 subscribers
grew at a much higher rate than the number of customers (+1.8%).
(up 5% vs. 1.3%). The Global Personal Contract accounted for
53% of family contracts, up 6%, and the Adjustable Personal cic.fr: 396 million connections
Clearer, more straightforward,
Contract continued to grow substantially by 22.8%. The year was marked by two major changes: the addition
The year 2016 was also marked by a sharp increase in of budgeting to the smartphone apps and the redesign of
more accessible and more
the number of people enrolled in remote banking with 63% the CIC website (cic.fr).
of subscribers. however, the highlight of 2016 was the sharp increase in
personalized: we have completely
the number of connections via smartphone apps (+24.4%
in a year). Today, about one out of two connections is made
redesigned the CIC website to
via our smartphone or tablet apps.
better meet our customers’ needs.
(2) ATMs that feature a touch screen.
12 13
PRESENTATION
Self-employed professionals Employee savings management Treasury management and financial investment In terms of capital management, loan outstandings grew
steadily to €839.9 million and total cash management balances
A total of 4,614 new contracts were signed in 2016, bringing the In 2016, CIC continued to adapt its solutions to meet companies’
A dedicated sales force increased by 7.5%, reaching €7.6 billion at December 31, 2016.
overall amount to 29,958. security, liquidity, transparency and performance needs in a
A team of 2,280 account managers specialize in the management context of record low interest rates. Finally, the solidarity-based savings products offered by CIC
Life, health and personal protection insurance
of self-employed professionals to respond appropriately to the The effects of the Quantitative Easing policy continued to be felt. to its customers are becoming increasingly popular which
needs of the various market segments. self-employed professionals accounted for €4,676 billion There is ample liquidity, which is held in the accounts. benefits the partner associations.
(13.5%) of total life insurance business. The subscription of Against this backdrop, total savings rose by 8.3% to €36.874
In 2016, 692,160 self-employed professionals(1), in the broadest 3,707 individual health insurance policies and 16,207 personal billion, driven mainly by current accounts with credit balances retail banking
sense of the term, benefited from CIC's expertise.
protection insurance policies brought the total number of (€15.5209 billion in savings, an increase of 36.1%). support services
policies outstanding to 14,049 (up 11.6%) and 76,386 (up 7.8%)
New customers Payments
respectively.
Campaigns targeting self-employed professionals resulted in In terms of group health and personal protection insurance Ensuring payment security is a priority. This is reflected in Insurance
the acquisition of 68,403 new customers. The total number of policies, account managers for self-employed professionals the proactive shift towards strong authentication to validate
customers rose by 3.3% in 2016. were responsible for the signing of 7,127 new policies in 2016. payments and the adoption of the innovative safetrans solution CIC markets the insurance product lines designed and
In the farming sector, 3,362 new customers were added in A total of 2,066 Madelin plans (pension savings plans providing which replaced the BAC. Promoting the K-sign RGs** managed by Groupe des Assurances du Crédit Mutuel (GACM),
2016, bringing the portfolio to 38,194. a retirement annuity) were sold. electronic signature solution also allows secure authentication. whose overall portfolio consisted of 28.6 million policies at
In addition, CIC continues to focus on the development of December 31, 2016. GACM's premium income in 2016 was
Lending Partnerships electronic payments via the Monetico Paiement online payment €10,644 million, €3,799 million of which was achieved in the
loans outstanding to self-employed professionals rose by Agreements with branded networks continued and totaled 139. platform, which increases sales. CIC network.
4.4% thanks in particular to the loans made available in 2016 International The year was marked by a record number of new auto and
Communication
for our business customers, which totaled €6.902 billion. home insurance policies. After two less productive years,
Relying on the group’s network of branches and 34 representative
new investment loans reached €3.198 billion for a 4.9% one-year sales drives included a radio campaign aimed at all self- personal protection insurance performed well thanks in
offices worldwide, CM-CIC Aidexport offers companies “tailor-
increase, while new equipment leasing loans also rose by 7.7% employed professionals, while CIC took part in several particular to the marketing campaigns.
made” solutions to support them internationally.
to €469 million. events designed for this customer segment (trade fairs,
For transaction processing, the international business center Gross life insurance inflows were down slightly by 1.2%,
conferences, etc.).
The €2.826 billion in new home loans made available to operates a performance and quality improvement process. but with continued growth of 12.7% in unit-linked policies.
self-employed professionals represented 21.3% of CIC network's Financing solutions for import and export activities are offered
Corporates Total commissions paid amounted to €1.228 billion, up 4.9%,
total new lending. by the group's experts and regional specialists to meet the
including €341.7 million paid to CIC.
needs associated with developing operations in foreign markets
Action in support of entrepreneurs led to the issuance of 5,053 New customers and ensuring secure transactions.
Property
loans benefiting from a Bpifrance guarantee as part of the CIC's strategy is based on direct contact between account In 2016, a new "Parent Companies/subsidiaries" marketing
business creation initiative. managers and their customers. Even though online banking campaign was launched to help customers expand through Auto insurance benefited from the new product introduced in
For customers in the farming sector, the amount of loans offers new functionality that allows customers to play a more the subsidiaries in Germany and spain and thanks to the April 2015. This fully redesigned, more competitive product
made available passed the €500 million threshold, bringing active role, the account executive remains informed of how they partnerships with Desjardins in Canada and BMCE in Morocco. helped the network sell policies on a large scale, with the
number of policies in the portfolio increasing by 5.3% to
the total amount of commitments to €2.5462 billion (up 6.2%). use it in order to provide appropriate advice at the right time. Employee benefit schemes
2,786,627.
For CIC, the best way to meet customers' needs is to make
Savings every effort to find solutions. The group is therefore committed CIC now offers managers more ways in which to actively The product range covers the needs of all customer groups:
involve their employees in their company's development,
In 2016, total savings increased significantly by 6.9% to to adapting its products and services to customers’ priorities. individuals, self-employed professionals and businesses, from
while controlling the management of employment-related
€25.6 billion. This includes an increase in sight deposits of The innovative capacity and expertise of the business centers basic to fully comprehensive services, with support services
costs (incentive plans, profit-sharing, employee savings plan).
€1.6 billion (up 19.1%) and in life insurance of €161 million are prerequisites for responding to all their needs. The account In 2016, the financial benefits of the Macron law encouraged options.
(up 3.6%). savings accounts remained stagnant and 2016 saw executive, who is at the heart of the customer relationship, companies to sign contracts to support and expand their business The home insurance product line launched in 2014 is now fully
a negative change in securities of our business customers of guarantees the quality and effectiveness of a one-to-one activity. Group health insurance, boosted by the new regulation operational. The number of policies grew by 4.5% to 2,499,782.
€188 million (down 7.1%). relationship based on mutual trust. and a single commitment: resulting from the national multi-industry agreement (AnI),
service first. rounds out the new schemes. The rollout of the Monetico Resto The bad weather in May and June 2016 put a significant strain on
Customer loyalty The total number of customers rose by 2.6%. electronic restaurant card solution now complements the the Constatel call center with nearly 20,000 insurance claims.
Products and services were actively marketed: In all, 11,278 companies joined the corporate network in 2016. paperless systems used in every area. The measures taken, particularly the payment of advances, the
• the total number of remote banking contracts passed the In this context, employee savings balances rose 3% in 2016 fast response and remote damage assessment, were intended
300,000 mark, increasing by 21,721 (7.7%) to 301,312; Lending to €2.0772 billion. to improve the service provided to policyholders.
• the number of business contracts reached the 200,000 The modest recovery supported by government measures, Personal insurance
threshold, rising by 13,481 (7.0%) to 206,012. particularly the extension of the additional depreciation rule Associations
In the banking network, electronic payments grew by 6% as a for new investments, and record low interest rates boosted The number of personal protection policies (excluding bank
result of an increase in both the number of active terminals (up investments. new medium- and long-term lending continued With appropriate banking products, seasoned specialists who personal protection) increased by 3.2% with 2,381,941 policies
4.6%) and the number of transactions carried out (up 10.2%); to grow in 2016, taking outstandings to €14,440.2 billion have real knowledge of the market and technology to better at year-end.
at €31.104 billion, the amount of payments made on electronic (up 6.1%). Equipment leasing totaled €1,387.4 billion and real serve its customers, over the years CIC has become a leading The borrower’s insurance portfolio did not experience a
bank in this market. This is supported by excellent results in
payment terminals therefore exceeded the €30 billion mark. estate leasing €234 million, confirming the constant growth of significant increase in cancellations following the introduction
recent years.
the lease financing offering. of the hamon law and the continuous loan renegotiations.
operating loan outstandings rose by 0.7%. In 2016, this trust resulted in a 10.3% increase in the number In this competitive environment, enrollment procedures were
overall, the corporate network's commitments grew by 4.3% to of customers that are associations, foundations and other simplified and online medical acceptance procedures were
(1) Professionals, farmers and others excluding associations. €35,584.7 million. non-profit organizations, for a total of 101,493. implemented.
14 15
BUsInesses
PRESENTATION
Assurance santé continued to develop a range of services The revamping of the comprehensive insurance product line Investment funds under invitations to tender, a total of €1.407 billion was
through partnerships with healthcare professionals. The insurance was well-received and improvements continue to be made collected in 2016, thanks to a larger team that is the single
offered satisfies the specifications incorporated into industry to offer solutions tailored to a wide range of professions in a In 2016, CM-CIC Asset Management, the business center for point of entry for the group, in partnership with the group's
agreements and products certified as supplemental health standardized framework that facilitates distribution through a the Crédit Mutuel group's asset management and France's large accounts division and in collaboration with CM-CIC
insurance assistance policies. The Avance santé card, a means banking network. fifth largest asset manager, recorded 3.1% growth in assets Épargne salariale.
of payment associated with health insurance, continues to
under management in the French market, from €61.8 billion to
supplement third-party payer systems. Online insurance services In 2016, international development continued with the marketing
€63.7 billion, with a 5.50% market share(1).
of the two CM-CIC Protective 90 and CM-CIC Europe Growth
Filbanque subscribers have access to their policies in a
Life insurance funds through Targobank Germany. These funds will also be
dedicated area of the website that offers fully personalized This increase was mainly due to net inflows of €1.112 billion
marketed in 2017 through Targobank spain.
Gross life insurance inflows were €6.287 billion, down 1.1%. service in conjunction with the branches. For personal insurance, in bond assets. With negative short-term interest rates,
net inflows remained positive at €1.247 billion despite declining they can obtain quotes, subscribe online, change certain coverage the group’s cash funds, among the highest rated in the market(2) The year ended with the redesign of the discretionary portfolio
by 16.7% (as a reminder, €1.497 billion in 2015). or choose between life insurance policies. These applications at December 31, 2016, posted positive performance in 2016. management service offered by CM-CIC Gestion, which
have been developed for tablets. on their smartphone, operates through the CIC, CIC Private Banking and Crédit
CIC's gross inflows totaled €2.771 billion, down 3.8%, and net subscribers can also find useful telephone numbers, get advice As for equity mutual funds, CM-CIC Asset Management's Mutuel networks.
inflows fell by 36.8% to €336 million. in the event of an auto or home accident and view their health performance was in line with the stock market, which was
insurance coverage and most recent reimbursements. CM-CIC Gestion’s managed assets increased by €10.3 billion
net rates of return on policies and funds in euros ranged marked by high volatility both economically and politically (up 5%) at end-December and its activity generated more than
from 1.40% (livret Assurance) to 1.75% (Plan Assurance Vie Dedicated spaces are also open to employees of companies (Brexit, election in the united states, etc.). however, the relative €90.6 million in net banking income for the group in 2016.
Privilège) excluding the remuneration bonus. that have taken out group health insurance policies or pension portion of the equity mutual fund assets remained stable at
savings plans. more than €8 billion. lastly, CM-CIC AM continued to develop its role as a mutual
Insurance for self-employed professionals
fund accounting services provider. Its activity further increased
and corporates In 2016, CM-CIC Asset Management endeavored to help the with the valuation of 1,143 internal and external portfolios
several changes have been made to meet the property and networks plan for the future and take advantage of opportunities. (including 428 for 79 third-party asset management companies).
personal insurance needs of self-employed professionals To address the major issue of transferring the ACM euro funds
In 2016, revenue totaled €231 million. The total amount of
and corporates, with whom the network is actively engaged. to unit-linked policies, the growth fund called CM-CIC Europe
commissions paid mainly to the group's entities was nearly
Growth was authorized for the "pack uC” discretionary
In terms of social welfare, companies of any size can benefit €174 million.
management product marketed since september.
from pension, personal protection or supplemental health
The main objectives for the Crédit Mutuel group’s asset
insurance policies tailored to their needs.
In addition, several successive formula-based fund campaigns manager in 2017 are the protection of customers’ assets
To meet the requirement imposed on all private-sector were launched, generating a total inflow of €254 million. and development through collaboration with the networks,
companies, a decision was made to add a healthcare component The year 2016 also saw the marketing development of the with priority given to the medium and long term.
to the social protection scheme of national Collective Agreements. "Flexigestion” flexible management products. This product line,
After being stalled for a while due to a lack of staffing, this which includes three investment solutions, brought in nearly Employee savings management
approach generated a great deal of enthusiasm at the end of €140 million.
2015. Plan santé Entreprise offers automated solutions that
CM-CIC Epargne salariale, the core of this business line for
satisfy the specifications defined. All policies enjoy the benefits A fund called CM-CIC silver Économie was added to the Europe CIC and Crédit Mutuel, represented at year-end 2016:
of individual policies: electronic claims management, call themed range. This fund is invested in securities that keep • €7,809 million in assets under management (up by 3.1%);
centers and the Avance santé card. pace with the aging of the population. • 81,118 corporate customers (up by 7.0%);
• 1,335,409 employees’ savings under management (up by 1.8%).
Key figures for 2016 net inflows (up by €119.5 million) and asset valuation (up by
€72.6 million) are behind the change in assets under management.
Groupe des
The year 2016 was characterized by a significant increase in
revenue assurances du of which:
new business:
(€ millions) Crédit Mutuel 2016 / 2015 CiC 2016 / 2015
• 2016 inflows rose by 11.5%, i.e. €1.089 billion, compared
Property 1,751.4 13.9% 362.6 8.7% to 2015,
In 2016, the quality of CM-CIC AM’s management
• sales of contracts were up 25.5%, with 11,820 new contracts,
Personal insurance 2,604.9 4.0% 664.9 7.3%
was recognized by the "le Revenu” and “Mieux
• payments on new contracts totaled €130.3 million, up 4.4%.
life insurance 6,287.5 (1.1%) 2,771.2 (3.8%) Vivre Votre Argent" financial magazines:
Total outflows of €970 million, a 14.8% increase, were due in
total insurance revenue 10,643.7 2.3% 3,798.7 (0.9%) - Trophée d’or for best range of three-year diversified funds,
part to the deposit of €70.4 million with the Caisse des Dépôts
number of policies - Trophée d’or for best 10-year euro bond fund (performance pursuant to the Eckert law.
as of March 31, 2016. source Morningstar)
Property 12,399,131 4.2% 3,487,812 5.5% Total operating income was €51.7 million (up 8.6%) as a result
- Corbeille d’or for best range of five-year diversified funds
Of which: Auto 2,786,627 5.3% 516,974 11.3% of the application of new pricing and the increase in the
(performance as of June 30, 2016. source: six Financial
number of customers and assets under management.
Of which: Home 2,499,782 4.5% 611,056 6.7% Information France)
The overall profitability of the activity(3) was €31.9 million,
Personal insurance 12,701,167 1.3% 3,675,900 2.7% For the second straight year, the Performance with net profit of €3.7 million (up 36.3%).
Of which: Personal accident and injury (excl. bank personal protection) 2,381,941 3.2% 676,560 2.7% label was awarded to the following funds: The total amount of commissions paid to the networks was
CM-CIC Dynamique International, CM-CIC €28.2 million, up 4.6%.
Of which: Loan guarantee insurance 5,615,766 (0.4%) 1,462,375 2.1%
Europe Growth and CMCIC Entrepreneurs.
life insurance 3,459,729 3.2% 878,436 5.0% (Five-year performance as of December 31, 2015. (1) source: six Financial Information France.
source: six Financial Information France). (2) source: Europerformance.
total 28,560,027 2.8% 8,042,148 4.2%
(3) net profit + compensation paid to the CM and CIC networks.
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PRESENTATION
CORPORATE BANKING
This past year saw significant capital expenditure on information The breakdown of outstandings remained mostly unchanged In 2016, net banking income from financing totaled €353 million
technology aimed at enhancing services to companies and but is coming into balance. The proportion of logistics sites and
and income before tax was €226 million. The bank mobilized all
savers. warehouses remained stable at 20.1% of outstanding volumes,
synergies are also being tested in order to promote the commercial properties accounted for 23.7% (-1.6 points) and its specialized teams and the various branches for its major customers
development of the consumer market of Crédit Mutuel and CIC industrial sites 21.7% (+0.2 points). The remaining existing
by turning savers into bankinsurance customers. leases covered a range of sectors, including office buildings to whom it provides customized long-term support, with a full range
Finally, CM-CIC Épargne salariale was entrusted with the (15.9%), healthcare facilities (8.4%), hotels (7.8%) and other
of services.
management and marketing development of Monetico Resto. properties (2.4%).
net interest income from customers rose by 8% in 2016.
Financing and management
Various IT projects and human resource developments needed
of receivables to continue growth in new business and existing leases led to Financing activities: 2016 2015 Change
a 3.7% increase in general operating expenses excluding new key figures (€ millions) 2016/2015
A subsidiary of the Crédit Mutuel-CM11 group, CM-CIC Factor tax and regulatory charges. Commissions paid to the CM11 net banking income 353 366 (3.6%)
specializes in receivables and payables management and and CIC networks totaled €20.1 million, up 8.1%. net income
financing. It offers short-term financing to corporates in France increased to €10 million. General operating expenses (105) (97) 8.2%
and abroad, with a range of factoring and assigned business operating income before provisions 248 269 (7.8%)
receivables management solutions. Equipment leasing
net provision allocations/reversals for loan losses (22) (23) (4.3%)
In 2016, the transaction volume(1) grew by approximately 17%, In a favorable yet still uncertain environment, CM-CIC Bail Income before tax 226 246 (8.1%)
driven mainly by factoring. Gross net banking income was continued to grow at a steady pace in 2016. For the first time,
€124 million (up 7%) as a result of the increase in commissions new business exceeded the €4 billion mark, increasing by 8.3% net income attributable to owners of the company 143 158 (9.5%)
on investment management and the decrease in refinancing compared with 2015 to €4.132 billion. A total of 114,206 leases source: consolidated financial statements.
costs that resulted from the decrease in market indexing rates. were arranged to meet the investment needs of corporates,
overall economic profitability(2) stood at €42 million (up 3%), business customers, self-employed professionals and individuals.
Large accounts:
with large IT investments currently underway. net income after
In France, the Crédit Mutuel and CIC networks alone recorded
payments to the networks and corporation tax amounted to corporates and
a significant increase in new business (up 15.9%), particularly
€4.3 million (up 69%).
in capital equipment financing. nearly 24% of business was institutional investors
In total, in the factoring and receivables management market, generated abroad by our Benelux and German subsidiaries
CM-CIC Factor has: and our branch in spain. In a fragile economic environment, the total amount of commit-
• €33.8 billion in receivables purchased; ments of the large Accounts division remained stable in 2016.
overall profitability remained high thanks to growth in volumes
• an average of €3.8 billion in financed receivables(3), up 15%; overall exposure (excluding guarantees received) rose by 0.3%
fueled by the increase in new business, enabling the financial
• nearly 11,000 active customers. from €18.5 billion to €18.6 billion. on-balance sheet outstandings
margin to reach €162 million. Commissions paid to the
networks rose sharply (up 7.5% after spreading new business increased significantly at year-end by 28.2% (€4.6 billion compared
As a result of growth in business with the networks, it paid commissions over time) with general operating expenses to €3.6 billion at end-2015). off-balance sheet guarantees
€34.4 million in new business and risk commissions. under control and stable net provision allocations/reversals for (sureties and risk participations) decreased by 14.4% (€4.8 billion
loan losses. versus €5.6 billion). off-balance sheet financing (undrawn
Real estate leasing committed lines) contracted slightly by 1.6% (€9.2 billion compared
net income after tax totaled €26.6 million.
to €9.4 billion).
In 2016, new real estate leasing financing agreements for
The year 2016 was marked by: As indicated in the medium-term plan, the development of
customers of the group's networks totaled nearly €629 million,
• continued growth in all our activities; commercial activity was a priority. The risk selection policy was
up 4% compared to the previous year, as a result of 289 new
• the increase in auto lease financing for individuals; maintained, as was the drive for reduced concentration of
transactions.
• the development of international business; and
commitments by means of greater sector diversification.
Real estate leasing is suitable for many projects and business • the use of customer satisfaction surveys as part of our net provision allocations/reversals for loan losses were contained
sectors and an appropriate means of long-term financing for quality approach.
with a net addition of €10.3 million for the year. The quality of
companies. CM-CIC lease’s total financial and off-balance
the portfolio remained strong, with 87.7% of commitments
sheet outstandings increased by 4% during the year, the same
classified as investment grade at september 30, 2016.
rate as in 2015, to €4.4 billion.
The negative interest rate environment impacted the average
As in the previous year, activity was diversified with a high margin level.
proportion of financing of logistics site projects (28.5% of
new business in terms of volume, +0.9 points) and commercial
At the end of 2016, deposits stood at €4.8 billion (compared to
properties (19.9% of new business, -2.4 points). new leases on
€6 billion a year earlier), including €3.9 billion in sight deposits.
office buildings and industrial sites accounted for 15.2% (-0.4
Added to that at year-end were €0.3 billion in negotiable debt
points) and 15.3% (+1.5 points) of new business, respectively.
securities and €9.3 billion in money market funds (versus
€11.8 billion a year earlier), excluding uCITs not in custody
(1) Amount of assigned or purchased receivables. (€8.3 billion).
(2) I ncome/(loss) before non-recurring items and corporation tax and before
commissions paid to the networks.
CIC was involved in 27 loan syndications (compared to 28 in 2015),
(3) Average annual amount of assigned or purchased receivables excluding
reserves and guarantees. more than 70% of which were related to refinancing (extension
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