HALF-YEARLY FINANCIAL REPORT
JUNE 30, 2008
CONTENTS
Chapter I Responsible persons
... 4
1.1. Responsible for the half-yearly financial report ... 4
1.2. Certificate of responsible person ... 4
Chapter II INFORMATION ON TRENDS
... 5
2.1. The forward looking declaration on the BFCN prospects ... 5
2.2. Known trends, uncertainty or request or any engagement or event reasonably likely to
materially influence the prospects of the issuer for at least the current financial year... 5
Chapter III HALF-YEARLY FINANCIAL STATEMENTS
... 6
3.1. Intermediate half yearly information ... 6
3.1.1
Half yearly activity report
... 6
3.1.2
Condensed consolidated financial statements
... 9
Chapter IV REPORT OF THE STATUT
ORY AUDITORS ON THE FINANCIAL
STATEMENTS AFTER LIMITED EXAMINATION OF THE HALF-YEARLY
ACCOUNTS...32
Chapter V DOCUMENTS AVAILABLE TO THE PUBLIC
... 35
5.1. Documents available to the public... 35
5.2. Person responsible for information... 35
Chapter I
Responsible persons
1.1. Responsible person for the half-yearly financial report
Mr. Michel LUCAS, Director General, Banque Fédérative du Crédit Mutuel.
1.2. Certificate of responsible person
I certify that to the best of my knowledge the condensed financial statements for the past six months have been
drawn up in accordance with the applicable accounting standards, and give a faithful image of the assets,
financial situation, and earnings of the company and of the companies included in the consolidation, and that the
half-yearly activity report attached is a faithful representation of the important events occurring in the first six
months of the financial year, of their effect on the financial statements, of the main transactions between the
related parties and a description of the major risks and uncertainties for the remaining six months of the financial
year.
Signed
in
Strasbourg,
August
4,
2008
Managing Director
Michel LUCAS
Chapter II INFORMATION ON TRENDS
2.1. Forward-looking declaration on BFCN prospects
Outlook for 2008:
During the last twelve months, the crisis in the financial markets has had increasingly extensive effects.
Tensions in the inter-bank market and on interest rates have made for tougher general terms for financing
economic activity, to an extent such that the crisis has now spread to segments beyond the North American
residential property market and its mechanisms of finance. The financial markets more generally have been
affected. Share prices have fallen almost every where, and reduced liquidity affects a number of trading
compartments. These factors had a highly unfavorable impact on the CIC branch in New York, and on the
group's market activities, which reported negative net banking income. Such unfavorable trends, if they persist
or become more pervasive, are liable to lead to lower earnings for the group in 2008.
2.2. Known trends, uncertainties, demands, engagements or events reasonably likely to
materially influence the prospects of the issuer for the current financial year and possibly beyond
In this context, the main risk factors liable to influence the level of earnings for the financial year in progress
are:
•
Increase in counter party risks for customers and banks;
•
Tougher terms of access by the group to refinancing (lack of liquidity in the inter-bank markets and
higher interest rates);
•
Loss of value in market positions.
These elements are in greater part due to the macro-economic developments characteristic of the crisis in the
financial markets, and which are difficult at this point in time to identify with precision.
Chapter III HALF-YEARLY FINANCIAL STATEMENTS
3.1. Intermediate half yearly information
3.1.1
Half yearly activity report
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Difficult economic environments for the banking industry
The crisis in the financial markets, which originally affected only the sub prime compartment, has gradually
become more pervasive and multiform. The extremely adverse conditions in the financial markets have been
accompanied by a contraction in lending, while inflationary risks have come to the fore again.
This environment has caused great difficulty to the banks in their trading activity and operations. The difficulties
they face in refinancing and their substantial asset write-downs have further adversely affected the levels of
earnings and the equity of the banking sector. In the United States, the Federal Reserve has had to use all the
instruments available to it to avoid a systemic crisis in the financial markets, and has done so by directly
organizing the rescue of certain banks and by injecting liquidity into the markets.
The conditions under which the banks conduct their business have continued to deteriorate. Inter-bank lending
rates remain high, and the costs of long term finance are rising.
BFCM activity on behalf of the CM4-CIC group
The Banque Fédérative du Crédit Mutuel (BFCM) acts as a holding company and a central point of refinance for
the CM4-CIC group.
This mission is performed in the first instance on behalf of the four branch networks of the Crédit Mutuel,
namely Crédit Mutuel Centre Est Europe, Crédit Mutuel Sud-Est, Crédit Mutuel Ile-de-France and Credit
Mutuel Savoie Mont-Blanc(CM4). The sources of funds available to BFCM from deposits of €37.9 billion,*
increased by 3.7% compared to year end 2007. At the same time, the refinancing of the lending of these
networks increased by 6.2% to €53.1 billion*. On the other hand, the deposits held by CIC and its regional
banks as up to June 30
amounted to €9.1 billion* and refinance granted amounted to €31.6 billion.*
To perform its role as a source of finance for the network, the BFCM issues bonds on the security of its
subsidiary CM-CIC Covered Bonds, which are AAA rated by the three main rating agencies. The outstanding
debt is €6 billion*, after a further issuance of €1.5 billion* in the first half (* excluding attached receivables or
payables).
Retail Banking Operations
June 30, 2008
June 30, 2007
Change
Net banking income
1,636
1,544
+6%
Income 249
237
+5%
(in € millions)
The retail banking business is mainly in the hands of the CIC group, which continued to develop its network,
resulting in:
-
Winning 170,121 new customers (+4.4%), raising its private, professional and corporate customer base to
4,079,399 accounts on June 30, 2008 from 3,909,278 on June 30, 2007;
-
16% rise in the total loans to customers (€88,724 million on June 30, 2008 as against €76,511 million on
June 30, 2007);
-
16% rise in deposits (€53,939 million on June 30, 2008 as against €46,376 on June 30, 2007);
-
15.8% increase in the number of contracts in the insurance business from 1,923,696 on June 30, 2007 to
€2,227,053 on June 30, 2008 with further growth in services.
The Banque de l’Economie du Commerce et de la Monétique is a BFCM subsidiary specializing in services to
industrial and other players in the real estate sector. In spite of the difficult environment, particularly in the field
of financing real estate professionals, business volumes grew strongly in the first half. The development of the
corporate market offset the reduction in lending to the real estate markets more generally. The loan book
increased by 14% over 6 months, and sources of funds by 11%. Against this backdrop, BECM was able to
increase its NBI by 7% as compared to the first half of 2007.
Overall, the increase in NBI and well-controlled general expenses (+1% compared to first half of 2007), resulted
in retail banking sector earnings increasing by 5% to €249.1 million.
Finance Banking and trading activity
June 30, 2008
June 30, 2007
Change
Net banking income
-88
464
ns
Income -133
222
ns
(in € millions)
The finance banking businesses reported a rise in their NBI from €154 million on June 30, 2007 to €207 million
on June 30, 2008.
Against the backdrop of the crisis in the financial markets, the NBI of the market activities of the BFCM and the
CIC stood at €310 million on June 30, 2007 and at -€295 million on June 30, 2008. Positions have been valued
under IFRS at market prices, which were adversely affected by falling stock prices and by the rise in credit
spreads in a market whose continuing characteristic has been restricted liquidity, and where prices are not
necessarily a reflection of the value of the underlying assets. A return in the market to the conditions and
liquidity for securities trading which obtained at year-end 2007, would result in positive NBI.
The NBI of the market-related activities of the New York subsidiary of the CIC fell to a negative €224 million
on June 30, 2008 as against €11 million in surplus on June 30, 2007. This branch possesses a RMBS
1
portfolio
of €2.8 billion, 95% comprised of AAA rated securities, of which 37% are guaranteed by the American Federal
agencies. The steep deterioration in the conditions of market trading has adversely affected the value of its
holdings in securities when marked to market by reference to external broker prices, in a market qualified as
"illiquid."
The decline in consolidated premium income was more especially the consequence of lower inflows of life
assurance premiums, which fell by 23.4%.
At the same time, GACM reported excellent progress in its other insurance businesses. Its property and casualty
insurance business premium income rose by 12.2%. Growth was supported in the first half by the transfer, from
Suravenir Assurance to ACM IARD SA, of the non-life business of the Fédération de Crédit Mutuel de Loire
Atlantique and the Centre Ouest. The transfer was approved by the Comité des Entreprises d'Assurance
(Comittee of Insurance Companies) on the June 19, 2008, and took effect on January 1, 2008. Correlatively,
GACM withdrew as a shareholder of Suravenir Assurance, a company in which it had held a 34% stake.
The value of the financial assets and the shadow accounting as provided for under IAS 39 and IFRS 4 negatively
affected earnings in the amount of €30 million. General expenses increased by 8.1% overall. The technical
results of the various branches were good and contributed to stable levels of income, further supported by sound
trends in the fundamentals of the business.
Other sectors and results of the BFCM group
Private banking NBI increased slightly to €225 million as at June 30, 2008, from €223 million on June 30, 2007.
In the financial markets, which were affected by a crisis of confidence, the group's asset management businesses
on behalf of high net worth individuals continued to achieve organic growth in the first six months of 2008.
As a result of the completion of extraordinary non-recurrent transactions in the previous financial year, private
equity NBI, which stood at €318 million on June 30, 2007, fell to €77 million on June 30, 2008,
On June 30, 2008, the all-inclusive NBI of the BFCM group stood at €2,143 million as against €3,010 million
on June 30, 2007. Operational expenses fell to €1,595 million on June 30, 2008 from €1.605 million in June
2007. The cost of risk rose from €64 million to €142 million.
Overall net income was €354 million (as against €990 million in the first half of 2007), of which €273 million
attributable.
Consolidated book shareholder's equity was €10.7 billion (not including super subordinated securities).
Given this financial solidity, BFCM was able early in July 2008 to enter into an exclusive contract for the
acquisition at year-end 2008 of the Citibank German banking network, and early in June, to acquire Banco
Popular France. CIC was also able, at the end of March 2008, to raise its business profile in Morocco by
increasing its stake in Banque Marocaine du Commerce Extérieur (BMCE) from 10% to 15%.
3.1.2
Condensed consolidated financial statements
FINANCIAL STATEMENTS
BALANCE SHEET
Notes
June 30, 2008 Dec 31, 2007
in millions of euros
Cash, cash equivalent due from central Banks
4
7 066
6 083
Financial assets at fair value through profit or loss
5
92 739
97 349
Derivative hedging instruments - Assets
6
4 876
3 165
Available-for-sale financial assets
7
53 087
51 063
Loans to and receivables from credit institutions
4
96 935
96 977
Loans to and receivables from customers
8
131 461
121 660
Interest rate hedged portfolio - revaluation difference
9
-390
-63
Financial assets held to maturity
10
6 079
6 085
Current taxation
12a
554
454
Deferred taxation
12b
658
383
Regularization accounts and other assets
13
10 124
8 992
Shareholdings in companies consolidated by equity method
14
425
447
Investment properties
15
971
928
Tangible assets and real estate leasing
16
1 548
1 520
Intangible assets
17
247
202
Goodwill
18
686
664
BALANCE SHEET LIABILITIES
Notes
June 30, 2008 Dec 31, 2007
in millions of euros
Due to central Banks
19
663
59
Financial liabilities at fair value through profit or loss
20a
62 904
65 563
Hedging instruments - liabilities
6
3 961
2 857
Due to credit institutions
19
76 906
82 100
Customer deposits
21
73 949
69 980
Securitized debt payables
22
112 771
99 770
Interest rate hedged portfolio revaulation difference
9
568
201
Current taxation
12a
110
151
Deffered taxation
12b
408
527
Regularization accounts and other liabilities
23
11 606
10 701
Technical provisions for insurance contracts
24
44 512
45 355
Provisions for contingencies and liabilities
25
637
620
Subordinated debt
26
7 369
6 748
Shareholders' equity
27
10 701
11 277
. Shareholders' equity - Group share
8 964
9 493
- Capital paid up
1 302
1 302
- Additional paid-in capital
578
578
- Consolidated reserves
6 908
5 644
- Unrealized or deferred gains or losses
-97
505
- Profit for financial year
273
1 464
. Shareholders' equity - Minority interests
1 737
1 785
PROFIT AND LOSS STATEMENT
Notes
June 30, 2008 June 30, 2007
Dec 31, 2007
in millions of euros
Interest,income and equivalent
29
8 357
7 097
14 763
Interest,expense and equivalent
29
-8 294
-7 625
-14 666
Commissions (income)
30
1 134
1 123
2 303
Commissions (expenses)
30
-403
-413 -828
Net profit on financial operations
827
2 255
2 768
Net gains or losses on portfolios at fair value through profit or loss
31
780
2 085
2 576
Net gains or losses on available-for-sale financial assets
32
47
170
192
Income from other activities
33
522
574
1 047
Net banking income
2 143
3 010
5 388
General operating expenses
34
-1 519
-1 535
-2 940
Depreciation and amortization
35
-76
-70 -145
Gross operating profit
548
1 404
2 303
Cost of risk
36
-142
-64 -128
Operating profit
406
1 341
2 176
Interest on net profit of companies consolidated by equity method
14
24
18
64
Net gains or losses on other assets
37
4
3
13
Profit before tax
434
1 362
2 253
Corporate income tax
38
-80
-372 -549
Total net profit
354
990
1 704
Consolidated profit - Minority interest
81
128
239
In millions of euros
1st half
1st half
Full year
2008
2007
2007
Net profit
354
990
1 704
Tax
80
372
549
Profit before tax
434
1 362
2 253
Plus or minus net allowance for amortisation of tangilble and intangible assets
77
70
149
Minus impairment of goodwill and depreciation of other fixed assets
5
5
6
Plus or minus net provisions
79
-105
-234
Plus or minus share in profit of companies consolidated by the equity method
-11
-12
-36
Net gains or losses on investment activities
-7
-85
-102
(Plus) or minus (Income) / expenses of financing activities
Plus or minus other movements
538
1 556
2 317
Equals Total non-monetary items included in net profit before tax and other adjustments
682
1 431
2 102
Cash inflow/outflow relatiing to interbank transactions (*)
-7 104
13 084
-15 686
Cash inflow/outflow relating to customer transactions (*)
-6 675
-10 239
-13 218
Cash inflow / outflow relating to transactions related to other financial assets or liabilities (*)
11 492
292
28 731
Cash inflow/outlfow relating to transactions related to other non-financial assets or liabilities
-132
4 167
1 425
Minus tax paid
-272
-420
-752
Equals net decrease/(increase) in cash related to operating assets and liabilities
-2 691
6 884
500
NET CASH FLOW RELATED TO OPERATING ACTIVITIES (A)
-1 575
9 677
4 855
Cash inflow/outflow relating to aquisition and disposal of financial assets and long term investments (*)
-312
-177
-548
Cash inflow/outflow relating to investments in real estate (*)
-48
9
46
Cash inflow/outflow relating to tangible and intangible assets (*)
-120
-86
-214
NET CASH FLOW RELATED TO INVESTMENT ACTIVITIES (B)
-480
-254
-715
Cash flow from / to shareholders (*)
-240
-185
-183
Other net cash flows arising from financing activities (*)
1 499
3 601
5 862
TOTAL NET CASH FLOW RELATED TO FINANCING ACTIVITIES ( C )
1 259
3 417
5 679
EFFECT OF CHANGES IN FOREIGN CURRENCY ON CASH AND CASH EQUIVALENTS ( D )
39
-5
13
Net inlfow (outflow) in cash and cash equivalents (A + B + C + D)
-757
12 835
9 831
Net cash flow generated by operating activities (A)
-1 575
9 677
4 855
Net cash flow generated by investment activities (B)
-480
-254
-715
Net cash flow related to financing activites ( C )
1 259
3 417
5 679
Effect of change in foreign currency on cash and cash equivalent (D)
39
-5
13
Cash and cash equivalents at start of year
10 765
934
934
Cash accounts and accounts with central banks (assets and liabilities)
6 023
3 634
3 634
Net balance of accounts, demand deposits and loans with banks
4 742
-2 699
-2 699
Cash and cash equivalent at end of year
10 008
13 769
10 765
Net balance of cash accounts and accounts with central banks
6 403
12 402
6 023
Net balance of cash accounts, demands/deposits and loans with banks
3 605
1 367
4 742
NET CASH FLOW VARIATION
-757
12 835
9 831
CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY
Shareholders' equity, group share
Minority
interests
Capital
Additional
Reserves
+ / - deferred
Profit
Total
paid-in
(1)
values of
capital
AFS assets
(2)
Balance as at January 1, 2007
1 302
578
4 150
686
1 642
8 358
1 584
Consolidated profit
1 464
1 464
239
Appropriation of profit from previous financial year
1 642
-1 642
Dividend distribution
-140
-140
-43
Capital increase
Change in foreign currency translation
-34
-34
-3
Change in fair value of AFS assets (2)
-182
-182
-27
Effects of change of scope of consolidation
26
26
34
Balance as at December 31, 2007
1 302
578
5 644
505
1 464
9 493
1 785
Balance as at January 1, 2008
1 302
578
5 644
505
1 464
9 493
1 785
Consolidated profit
273
273
81
Appropriation of profit from previous financial year
1 464
-1 464
Dividend distribution
-195
-195
-45
Capital increase
Change in foreign currency translation
-5
-5
1
Change in fair value of AFS assets (2)
-601
-601
-84
Effects of changes in scope of consolidation
-1
-1
0
Solde au 30.06.2008
1 302
578
6 908
-97
273
8 964
1 737
(1) Reserves as of December 31, 2007 in the amount of € 108 million for the legal reserve, of € 891 million for reserves required by company statutes (objects and articlesof
association), and € 5,909 million other reserves.
The notes are presented in millions of euros
NOTE 1 - Principles and accounting methods
NOTE 2 - Breakdown of balance sheet and profit and loss statement by activity and geographical zone
Breakdown of profit and loss statement by activity
June 30, 2008 retail insurance finance private private structure inter Total banking and markets banking equity and holding activities
Net Banking Income 1 636 491 -88 225 77 -178 -19 2 143 General expenses -1 145 -151 -130 -136 -20 -32 19 -1 595 Gross operating profit 491 340 -218 89 56 -210 0 548 Cost of risk -138 -5 0 0 0 -142 Gain on other assets* 6 13 0 10 28 Profit before tax 359 353 -223 90 56 -201 0 434 Corporate income tax -110 -110 90 -18 6 62 -80 Net book profit 249 243 -133 72 63 -140 0 354
Minority interests 81
Attributable net profit 273
June 30, 2007 retail insurance finance private private structure inter Total pro forma banking and markets banking equity and holding activities
Net Banking Income 1 544 490 464 223 318 -34 5 3 010 General expenses -1 135 -140 -141 -127 -29 -29 -5 -1 605 Gross operating profie 409 350 323 96 289 -63 0 1 404 Cost of risk -56 0 -3 -4 0 -64 Gain on other assets* 5 6 0 10 21 Profit before tax 357 357 320 92 289 -53 0 1 362 Corporate income tax -121 -120 -98 -22 -10 -2 -372 Net book profit 237 237 222 70 279 -55 0 990
Minority interests 128
Attributable net profit 862
* including net profit of entities consolidated by the equity method and goodwill impairment
June 30, 2007 retail insurance finance private private structure inter Total published banking and markets banking equity and holding activities
INFORMATION ON BALANCE SHEET AND PROFIT AND LOSS STATEMENT
Activities are as follows:
• The retail bank includes the network of regional banks and CIC Ile-de-France, as well as all the specialist businesses selling products through the network, including real estate and equipment leasing, factoring, mutual fund management, employee trust fund (épargne salariale ) and real estate.
• The insurance business is handled by the Crédit Mutuel insurance group. • The finance and market activities include:
a) financing major companies and institutional customers, specialist finance, international and foreign subsidiaries;
b) market activities in the wider sense of the word, i.e. including interest rate and foreign exchange transactions and equities, whether exercised on behalf of customers or on own account, including market intermediation.
• Private banking activities including companies whose primary purpose is private banking, both in France and abroad. • Private equity exercised on own account and financial engineering make up a separate arm of the business.
• The holding structure covers elements not allocated to specific business lines and logistics organizations, including intermediate holding companies, real estate occupied by the bank for its business use, lodged in specific entities, as well as IT entities.
The consolidated entities are shown as wholly attached to their main business lines, and by their contiribution to their consolidated financieal statements. The only exceptions are two entities, CIC and BFCL, which operate across several business lines. In this case, parent company financial statements reflect these analytically under differentiated headings, the same principles applying to the balance sheet.
The principles and accounting methods are identical to those applied in the close-out of the financial year ending December 31, 2008. They have been drawn up in line with the accounting framework of the International Financial Reporting Standards (IFRS) as adopted by the European Union on June 30, 2008. This IFRS framework inclcludes standards IAS 1 to 41, IFRS 1 to 7 and their SIC and IFRIC interpretations adopted on the same date. The summary documents are presented according to the recommendation CNC 2004-R.03. The European Union did not adopt any new standards in the first half of 2008. The following new standards and interpretations were adopted in 2007, but were not applied in the first half of 2008: IFRS 8 "Operating segments" whose mandatory date of application is January 1, 2009 and IFRIC 11 to be applied from January 1, 2009, being without effect on the financial statements.
These intermediate financial statements have been drawn up in accordance with the standard IAS 34 relating to intermediate financial information enabling the publication of condensed financial statments. These financial statements are supplementary to the financial statements for the financial year ending December 31, 2007 presented in the reference document 2007.
The group's business is not seasonal or cyclical in nature.
Breakdown of balance sheet by geographical zones
ASSETS
France Europe Other Total France Europe Other Total outside France coutnries* outside France countries*
Cash and cash equivalent, due from Central Banks 6 638 419 9 7 066 5 723 355 5 6 083 Financial assets at fair value through profit or loss 90 732 234 1 772 92 739 94 824 232 2 293 97 349 Financial hedging instruments - Assets 4 624 252 0 4 876 2 973 192 1 3 165 Available-for-sale financial assets 39 329 11 779 1 979 53 087 37 652 10 833 2 577 51 063 Loans to and borrowing from credit institutions 94 443 1 309 1 183 96 935 93 789 1 804 1 385 96 977 Loans to and liabilities with respect to customers 121 773 6 859 2 828 131 461 112 760 6 421 2 479 121 660 Financial assets held to maturity 5 764 316 0 6 079 5 719 366 0 6 085 Shareholdings in companies consolidated by the equity method 207 0 218 425 230 0 217 447
Liabilities
France Europe Other Total France Europe Other Total outside France coutnries* outside France countries*
Due to Central Banks 0 663 0 663 0 59 0 59 Fiancial liabilities at fair value through profit and loss 59 569 3 149 186 62 904 61 505 3 900 159 65 563 Derivative hedging instruments - Liabilities 3 860 102 0 3 961 2 693 164 0 2 857 Due to credit institutions 71 540 1 606 3 759 76 906 74 030 4 030 4 041 82 100 Customer deposits 58 463 14 918 569 73 949 55 485 13 914 581 69 980 Securitized debt payables 95 316 13 930 3 526 112 771 82 302 13 588 3 880 99 770 * USA, Singapore, Tunisia and Morocco
Breakdown of profit and loss statement by geographical zone
France Europe Other Total France Europe Other Total outside France coutnries* outside France countries*
Net Banking Income 2 112 226 -194 2 143 2 756 208 46 3 010 General expense -1 460 -112 -22 -1 595 -1 477 -108 -21 -1 605 Gross operating profit 651 114 -217 548 1 279 101 25 1 404 Cost of risk -140 4 -7 -142 -62 -2 0 -64 Gains on other assets** 15 0 13 28 19 0 2 21 Net book profit 526 118 -210 434 1 236 99 27 1 362 Overall net profit 385 87 -119 354 899 74 17 990 Attributable net profit 301 81 -109 273 777 69 16 862 * USA, Singapore, Tunisia and Morocco
** including net profit of entities consolidated by the equity method and goodwill impairment
June 30, 2008 Dec 31, 2007
June 30, 2008 Dec 31, 2007
NOTE 3 - Scope of consolidation
Sociétés
Percentage Method Percentage Method Control Interest * Control Interest * A. Banking network
Banque de l'Economie du Commerce et de la Monétique 99 99 FC 99 99 FC Banque du Crédit Mutuel Ile-de-France (BCMI) 100 100 FC 100 100 FC CIC Banque CIO - BRO CIC 100 92 FC 100 92 FC CIC Banque Scalbert Dupont - CIN CIC 100 92 FC 100 92 FC CIC Bonnasse Lyonnaise de Banque (BLB) CIC 100 92 FC 100 92 FC Crédit Industriel et Commercial (CIC) CIC 92 92 FC 92 92 FC CIC Lyonnaise de Banque (LB) CIC 100 92 FC 100 92 FC CIC Société Bordelaise (SBCIC) CIC 100 92 FC 100 92 FC CIC Est (ex Société Nancéienne Varin Bernier) CIC 100 92 FC 100 92 FC Banco Popular France 100 100 FC NC
B. Subsidiaries of banking network
SCI La Tréflière 46 46 EM 46 46 EM SOFEMO - Société Fédérative Europ.de Monétique et de Financement 100 97 FC 100 97 FC Banque de Tunisie CIC 20 18 EM 20 18 EM CM-CIC Asset Management (ex Crédit Mutuel Finance) 74 72 FC 74 72 FC CM-CIC Epargne salariale (ex CIC Epargne salariale) CIC 100 92 FC 100 92 FC CM-CIC Bail (ex Bail Equipement) CIC 99 91 FC 99 91 FC CM-CIC Bail Belgium CIC 100 91 FC 100 91 FC CM-CIC Gestion CIC 100 92 FC 100 92 FC CM-CIC Lease CIC 100 96 FC 100 96 FC
Factocic CIC 51 47 FC 51 47 FC
CM-CIC Laviolette Financement CIC 100 92 FC 100 92 FC Saint-Pierre SNC CIC 100 92 FC 100 92 FC SNVB Financements CIC 100 92 FC 100 92 FC
Sofim CIC 100 92 FC 100 92 FC
CM-CIC Covered Bonds 100 100 FC 100 100 FC
C. Finance, banking and trading activities
Ventadour Investissement 100 100 FC 100 100 FC Cigogne Management CIC 100 96 FC 100 96 FC CM-CIC Mezzanine CIC NC 90 81 FC CM-CIC Securities CIC 100 92 FC 100 92 FC
D. Private banking
Agefor SA Genève CIC 70 65 FC NC Alternative Gestion SA Genève CIC 62 57 FC NC CIC Suisse (ex Banque CIAL Suisse) CIC 100 92 FC 100 92 FC Banque de Luxembourg CIC 100 94 FC 100 94 FC Banque Pasche (Liechtenstein) AG CIC 53 49 FC 53 49 FC Banque Pasche Monaco SAM CIC 100 92 FC 100 92 FC CIC Private Banking - Banque Pasche CIC 100 92 FC 100 92 FC CIC Banque Transatlantique CIC 100 92 FC 100 92 FC
June 30, 2008 Dec 31, 2007
In accordance with the opinion of the Banking Commission, the group parent company is made up of the companies in the scope of consolidation. The entities making up the group are: - Fédération du Crédit Mutuel Centre Est Europe (FCMCEE),
- Fédération du Crédit Mutuel du Sud-Est (FCMSE), - Fédération du Crédit Mutuel d'Ile-de-France (FCMIDF), - Fédération du Crédit Mutuel de Savoie-Mont Blanc (FCMSMB), - Caisse Fédérale du Crédit Mutuel Centre Est Europe (CFCMCEE), - Caisse Régionale du Crédit Mutuel Sud-Est (CRCMSE), - Caisse Régionale du Crédit Mutuel Ile-de-France (CRCMIDF), - Caisse Régionale du Crédit Mutuel de Savoie-Mont Blanc (CRCMSMB),
- Caisses de Crédit Mutuel adhérentes à la Fédération du Crédit Mutuel Centre Est Europe, - les Caisses de Crédit Mutuel adhérentes à la Fédération du Crédit Mutuel Sud-Est. - les Caisses de Crédit Mutuel adhérentes à la Fédération du Crédit Mutuel Ile-de-France - les Caisses de Crédit Mutuel adhérentes à la Fédération du Crédit Mutuel de Savoie-Mont Blanc - le Cautionnement Mutuel de l'Habitat (CMH)
Par rapport au 31 décembre 2007, les changements concernant le périmètre de consolidation sont :
· entrées du périmètre : Banco Popular France, Agefor SA Genève, Alternative Gestion SA Genève, Calypso Management Company, IPO Ingénierie, LRM Advisory SA, Pasche SA Montevideo, Serficom Family Office Inc, Valeroso Management Ltd
· sorties du périmètre : CM-CIC Mezzanine, Suravenir Assurances · fusions : Financière Armen avec IPO
Companies
Percentage Method Percentage Method Control Interest * Control Interest * Banque Transatlantique Luxembourg (ex Mutual Bank Luxembourg) CIC 90 85 FC 90 85 FC Serficom Family Office Inc CIC 100 92 FC NC Serficom Family Office SA CIC 100 92 FC 100 92 FC Serficom Maroc SARL CIC 100 92 FC 100 92 FC Transatlantique Finance CIC 100 92 FC 100 92 FC Valeroso Management Ltd CIC 62 57 FC NC
E. Private equity
CIC Finance CIC 100 92 FC 100 92 FC CIC Investissement (ex CIC Capital Développement) CIC 100 92 FC 100 92 FC CIC Investissement Alsace (ex Finances et Stratégies) CIC 100 92 FC 100 92 FC CIC Investissement Est (ex SNVB Participations) CIC 100 92 FC 100 92 FC CIC Investissement Nord (ex CIC Régions Expansion ) CIC 100 92 FC 100 92 FC CIC Vizille Participation (ex CIC Lyonnaise de Participations) CIC 100 91 FC 100 91 FC Financière Ar men CIC MER 100 92 FC Financière Voltaire CIC 81 75 FC 100 92 FC Institut de Participations de l'Ouest (IPO) CIC 81 75 FC 77 71 FC
IPO Ingénierie CIC 81 75 FC NC
Sudinnova CIC 50 45 FC 50 45 FC
CIC Banque de Vizille CIC 98 90 FC 98 90 FC Vizille Capital Finance CIC 100 90 FC 100 90 FC Vizille Capital Innovation CIC 100 90 FC 100 90 FC
F. Structure and logistics
CMCP - Crédit Mutuel Cartes de Paiement 45 46 EM 45 46 EM Euro-Information 27 26 EM 27 26 EM
Adepi CIC 100 92 FC 100 92 FC
CIC Migrations CIC 100 92 FC 100 92 FC CIC Participations CIC 100 92 FC 100 92 FC
Cicor CIC 100 92 FC 100 92 FC Cicoval CIC 100 92 FC 100 92 FC Efsa CIC 100 92 FC 100 92 FC Gesteurop CIC 100 92 FC 100 92 FC Gestunion 2 CIC 100 92 FC 100 92 FC Gestunion 3 CIC 100 92 FC 100 92 FC Gestunion 4 CIC 100 92 FC 100 92 FC Impex Finance CIC 100 92 FC 100 92 FC Marsovalor CIC 100 92 FC 100 92 FC Pargestion 2 CIC 100 92 FC 100 92 FC Pargestion 3 CIC 100 92 FC 100 92 FC Pargestion 4 CIC 100 92 FC 100 92 FC Pargestion 5 CIC 100 92 FC 100 92 FC Placinvest CIC 100 92 FC 100 92 FC Sofiholding 2 CIC 100 92 FC 100 92 FC Sofiholding 3 CIC 100 92 FC 100 92 FC Sofiholding 4 CIC 100 92 FC 100 92 FC Sofinaction CIC 100 92 FC 100 92 FC Ufigestion 2 CIC 100 92 FC 100 92 FC Ufigestion 3 CIC 100 92 FC 100 92 FC Ugépar Service CIC 100 92 FC 100 92 FC Valimar 2 CIC 100 92 FC 100 92 FC Valimar 4 CIC 100 92 FC 100 92 FC
VTP 1 CIC 100 92 FC 100 92 FC
VTP 5 CIC 100 92 FC 100 92 FC
G. Insurance companies
ACM IARD GACM 96 72 FC 96 72 FC
ACM Nord IARD GACM 49 37 EM 49 37 EM ACM Vie GACM 100 75 FC 100 75 FC Serenis Assurances (ex Assurances du Sud) GACM 99 74 FC 99 74 FC
Astree GACM 30 22 EM 30 22 EM
Euro Protection Services GACM 100 75 FC 100 75 FC Foncière ACM (ex ACM Retraite) GACM 89 66 FC 89 66 FC Groupe des Assurances du Crédit Mutuel (GACM) GACM 76 75 FC 76 75 FC ICM Life GACM 100 75 FC 100 75 FC
ICM Ré GACM 100 72 FC 100 72 FC
Immobilière ACM GACM 100 75 FC 100 75 FC Partners GACM 100 75 FC 100 75 FC Procourtage GACM 100 75 FC 100 75 FC SCI Socapierre GACM 100 75 FC 100 75 FC Serenis Vie (ex Télévie) GACM 100 75 FC 100 75 FC Suravenir Assurances GACM NC 34 25 EM RMA-Watanya GACM 20 15 EM 20 15 NC
Companies
Percentage Method Percentage Method Control Interest * Control Interest * H. Other companies
ACM GIE GACM 100 75 FC 100 75 FC ACM Services GACM 100 75 FC 100 75 FC Massena Property GACM 100 75 FC 100 75 FC Massimob GACM 100 72 FC 100 72 FC SA Saint Germain GACM 100 75 FC 100 75 FC SCI ADS GACM 100 74 FC 100 74 FC SNC Fonciere Massena GACM 98 68 FC 98 68 FC
NOTE 4 - Cash, cash equivalent, Central Banks Loans to and receivables from credit institutions
June 30, 2008 Dec 31, 2007 Cash, cash equivalent, Central Banks
Central Banks 6 810 5 762
of which mandatory reserves 2 868 2 580
Cash, cash equivalent 256 321
TOTAL 7 066 6 083
Loans to and receivables from credit institutions
Crédit Mutuel network accounts 268 253 Other ordinary accounts 5 080 2 259
Loans 85 219 91 841
Other receivables 1 479 1 056
Securities not listed in an active market 348 330
Loan of securities 4 321 983
Individually impaired receivables 8 12
Attached receivables 220 251
Provisions -8 -8
TOTAL 96 935 96 977
NOTE 5 - Financial assets at fair value through profit or loss
June 30, 2008 Dec 31, 2007
.Securities 60 671 65 646
- Government securities 19 217 20 760 - Bonds and other fixed income securities 30 912 33 802
. Listed 30 602 33 651
. Unlisted 310 151
- Securities and other variable income securities 10 541 11 084
. Listed 9 116 9 735
. Unlisted 1 425 1 348
. Derivative instruments 7 219 6 049 . Other financial assets 24 849 25 655
of which securities loaned 0 0
TOTAL 92 738 97 349
NOTE 6 - Hedging derivative instruments
Assets Liabilities Assets Liabilities
. Cash flow Hedge 5 8 6 9
- value change recorded in shareholders' equity 0 0 0 0 - value change recorded in profit and loss 5 8 6 9
June 30, 2008 Dec 31, 2007
June 30, 2008 Dec 31, 2007 CIC = Company belonging to the sub-group of Compagnie Financière CIC
GACM = Company belng to the sub-group of Groupe des Assurances du Crédit Mutuel * Method: FC = Full Consolidation PC = Proportional Consolidation EM = Equity Method NC = Non Consolidated MER = Merged
Analysis of derivative instruments
Notional Assets Liabilities Notional Assets Liabilities Derivative instruments
Interest rate instruments
Swaps 485 039 5 270 5 879 421 356 4 209 5 274 Other firm contracts 46 150 49 92 22 827 11 8 Options and conditional instruments 9 665 911 276 37 611 806 178
Forex instruments
Swaps 35 38 45 51
Other firm contracts 588 453 455 183 258 209 Options and conditional instruments 54 181 127 124 6 632 82 79
Other than interest rate and forex swaps
Swaps 42 191 38 44 37 529 125 40 Other firm contracts 3 281 0 11 2 718 0 11 Options and conditional instruments 9 516 335 291 13 892 513 528 Sub-total 650 611 7 219 7 212 542 749 6 049 6 377 Derivative hedging instruments
Fair Value Hedge
Swaps 30 758 4 777 3 953 19 896 3 071 2 847 Other firm contracts 0 0 0 0 0 0 Options and conditional instruments 13 94 21 89
Cash Flow Hedge
Swaps 79 5 8 77 6 9
Other firm contracts 0 0 Options and conditional instruments 0 0
Sub-total 30 850 4 876 3 961 19 994 3 165 2 857 TOTAL 681 461 12 095 11 173 562 743 9 214 9 233
NOTE 7 - Available-for-sale financial assets
June 30, 2008 Dec 31, 2007 . Government securities 3 877 2 602 . Bonds and other fixed income securities 42 136 40 677
- Listed 41 665 40 169
- Unlisted 470 508
. Equities and other variable income securities 4 536 5 172
- Listed 4 433 5 118
- Unlisted 103 53
. Capitalized securities 2 283 2 358 - Securities held for sale 1 350 1 248 - Other long term securities 543 846 - Shares in affiliated companies 391 264
. Attached receivables 255 254
TOTAL 53 087 51 063
Of which listed shareholdings 1 014 631
NOTE 8 - Loans to and receivables from customers
June 30, 2008 Dec 31, 2007 Sound loans and receivables 123 356 114 063
. Commercial lending 4 720 4 902
. Other lending to customers 118 219 108 686 - home purchase lending 53 090 49 682 - other lending and receivables including securities lending 65 129 59 004
. Attached receivables 335 313
. Securities not listed in an active market 82 162 Individually impaired receivables 3 353 3 204
Provisions -2 182 -2 115
SUB TOTAL I 124 527 115 152
Dec 31, 2007 June 30, 2008
Some of the equity lines held have a market price substantially below their cost price. Given the current special conditions in the equity markets, the group has not yet considered that the observable fall in share prices was in practice of a long-term nature. This position will be re-examined between now and the end of the financial year, depending on the observed changes in the financial markets.
Finance leasing (net investment) 6 737 6 393 . Equipment, plant machinery 4 591 4 297
. Real estate 2 037 1 987
. Individually impaired receivables 109 109
Provisions -79 -79
SUB TOTAL II 6 657 6 314
Reinsurance receivables 276 195
TOTAL 131 461 121 660
of which equity loans 0 0
of which subordinated loans 171 21
Lease finance transactions with customers
Operating Acquisition Disposal Other Close Gross book value 6 392 621 -270 -7 6 737 Write-down of unrecoverable installments due -79 -17 17 0 -79 Net book value 6 313 605 -254 -7 6 657
NOTE 9 - Interest rate hedged portfolio valuation difference Description of assets and liabilities hedged, and hedging instruments
Fair value June 30, 2008 Dec 31, 2007 Fair value of interest rate risk by portfolio
. Financial assets -390 -63 -327
. Financial liability 568 201 367
NOTE 10 - Financial assets held to maturity
June 30, 2008 Dec 31, 2007
.Securities 6 074 6 082
- Government securities 135 139 - Bonds and other fixed income securities 5 939 5 943
. Listed 5 644 5 600
. Unlisted 295 343
. Attached receivables 5 6
TOTAL GROSS 6 079 6 088
Provisions for depreciation 0 -3
TOTAL NET 6 079 6 085
NOTE 11 - Change in provisions for impairment
Dec 31, 2007 Allowance Write-back Other June 30, 2008 Loans to and receivables from credit institutions -8 0 1 0 -8 Loans to and receivables from customers -2 115 -390 330 -8 -2 182 Available-for-sale securities -221 -221 6 12 -423 Held-to-maturity securities -3 0 0 3 0
Total -2 347 -611 337 7 -2 613
NOTE 12 a - Current taxation
June 30, 2008 Dec 31, 2007
Assets P/L 554 454
Liabilities P/L 110 151
NOTE 12 b - Deferred taxation
June 30, 2008 Dec 31, 2007
Assets P/L 389 310
Assets (by shareholders' equity) 269 72
Liabilities P/L 388 447
Liabilities (by shareholders' equity) 19 80 Change in fair
NOTE 13 - Regularization account and other assets
June 30, 2008 Dec 31, 2007
Regularization account assets
Securities received on account of settlement 438 280 Foreign currency adjustment accounts 25 6
Accrued assets 613 543
Other regularization accounts 2 388 2 866
Sub-total 3 465 3 695
Other assets
Other security settlements accounts / transaction accounts 214 164
Other receivables 6 106 4 789
Inventory and equivalent 1 0
Other uses -3 -4
Sub-total 6 317 4 949
Other insurance assets
Insurance and re-insurance receivables 342 347
TOTAL 10 124 8 992
NOTE 14 - Shareholdings in companies consolidated by the equity method Interest in net profit of companies consolidated by the equity method
Equitable Profit percent Equitable Profit percent interest contribution interest contribution
Banque de Tunisie 39 3 38 5
SCI Tréflière 12 1 12 0
CMCP 15 19 13
Euro Information 150 7 135 17
Subsidiaries of GACM sub-goup 209 13 243 28
Of which RMA Watanaya 179 10 179 14
Of which Suravenir* 31 7
Of which ACM Nord 18 2 21 5
Of which ASTREE 12 1 12 2
TOTAL 425 24 447 64
*Disposal outside group
NOTE 15 - Investment properties
Value at beginning of financial year
Increase Decrease Other changes
Value at end of financial
year Historic cost 1 017 51 -3 0 1 065 Amortization and depreciation -89 -6 0 0 -95
Net value 928 45 -3 0 971
NOTE 16 - Tangible assets
Basic accounting procedure
Value at beginning of financial year
Increase Decrease Other changes
Value at end of financial
year Historic cost
Land for own business operations 327 1 0 5 332 Buildings for own business operations 1 934 69 -13 17 2 007 Other tangible fixed assets 662 41 -22 1 682
Total 2 923 111 -35 23 3 021
Amortization and depreciation
Land for own business operations 0 0 0 0 0 Buildings for own business operations -930 -49 13 -13 -980 Other tangible fixed assets -472 -24 8 -5 -493
Total -1 403 -73 21 -18 -1 473
Net value 1 520 38 -14 5 1 548
NOTE 17 - Intangible assets
Dec 31, 2007 Acquisitions Disposals Other changes June 30, 2008 Historic cost
. Assets acquired 265 32 -14 24 307
- software 0 0 0 2 2
- other 265 32 -14 23 305
Total 265 32 -14 24 307
Amortization and depreciation
. Assets acquired -63 -5 10 -3 -60 - software 0 0 0 -1 -2 - other -63 -4 10 -1 -58 Total -63 -5 10 -3 -60 Net value 202 27 -4 22 247 June 30, 2008 Dec 31, 2007
NOTE 18 - Goodwill
Subsidiaries Dec 31, 2007 Increase Decrease Other change June 30, 2008
Groupe CIC 505 505 IPO 21 21 Pérénnité 0 0 Banque du Luxembourg 13 13 Groupe ACM 8 8 Sous-groupe ACM 64 64 Banque Transatlantique 6 6 Banque Pasche 35 5 1 41 GPK Finance 5 1 6
Banco Popular France* 15 15
Other 7 7
TOTAL 664 21 0 1 686
NOTE 19 - Central banks Due to credit institutions
June 30, 2008 Dec 31, 2007 Central banks
Central banks 663 59
CCP 0 0
Total 663 59
Debt to credit institutions
Borrowing 2 304 4 719
Other debts 66 010 61 100
Securites lending 8 390 15 992
Attached debt 201 288
Total 76 906 82 100
NOTE 20 a - Financial liabilities on securities at fair value through profit or loss
June 30, 2008 Dec 31, 2007 Financial liabilities on securities held for trading purposes 17 417 19 003 Financial liabilities on securities assessed by fair value through profit or loss 45 487 46 560
TOTAL 62 904 65 563
NOTE 20 b - Financial liabilities on securities held for trading purposes
June 30, 2008 Dec 31, 2007 .Short sale of securities
- Government securities 0 0
- Bonds and other fixed income securities 9 193 11 102 - Equities and other variable income securities 531 897 . Trading derivatives 7 212 6 377 . Other financial liabilities held for trading purposes 481 628
TOTAL 17 417 19 003
NOTE 20 c - Financial liabilities on securities assessed by fair value hedges
June 30, 2008 Dec 31, 2007 .Securities issued
- Bonds 0 0
- Certificates of deposit 0 0
- Other 1 449 1 759
. Liabilities arising from securities loaned with obligation to repurchase 42 430 42 731
. Subordinated debt 0 0
. Liabilities 1 607 2 070
- inter-bank 1 607 2 069
- to customers 0 1
NOTE 21 - Customer deposits
June 30, 2008 Dec 31, 2007 . Special savings accounts 21 387 21 189 - instant access or on demand deposits 14 308 13 610
- term deposits 7 079 7 579
. Liabilities attached to savings accounts 357 29
Sub-total 21 745 21 217
. Ordinary accounts 28 391 28 613 . Term accounts and borrowings 22 159 18 705
. Securities lending 959 924
. Reinsurance liabilities 203 80
. Attached debt 493 441
Sub-total 52 205 48 763
TOTAL 73 949 69 980
NOTE 22 - Securitized debt payables
June 30, 2008 Dec 31, 2007
Short term lending 61 39
TMI & TCN 79 151 68 542
Bonds 32 783 30 391
Attached liabilities 777 799
TOTAL 112 771 99 770
NOTE 23 - Regularization accounts and other liabilities
June 30, 2008 Dec 31, 2007
Regularization accounts - liabilities
Accounts unavailable due to debt recovery proceedings 167 176 Foreign exchange adjustment accounts 1 698 1 653
Expenses payable 649 665
Other regularization accounts 6 147 5 483
Sub-total 8 660 7 977
Other liabilities
Accounts booking securities / transaction settlements 361 463 Settlements outstanding on securities transactions 77 47
Other creditors 2 400 2 114
Sub-total 2 838 2 624
Other insurance liabilities
Other insurance liabilities 0 0
Insurance and reinsurance debt 0 0 Due to credit institutions, depostis and pledges received 108 100
Sub-total 108 100
TOTAL 11 606 10 701
NOTE 24 - Technical provisions on insurance contracts
June 30, 2008 Dec 31, 2007 Life 37 141 37 289 Non-life 1 868 1 845 Units of account 5 273 6 023 Other 229 197 TOTAL 44 512 45 355
NOTE 25 - Provisions for contingencies and liabilities
Opening balance Allowance for financial year Write-back for financial year (provisions used Write-back for financial year (provisions not used)
Other changes Balance at close
Provisions for counterparty risk
- on commitments by signature 91 25 -19 -14 -14 83 - on finance and guarantee commitments 0 0 0 0 0 0
- on country risks 0 0 0 0 0 0
- provision for risk on other receivable 50 4 -3 -2 -10 41 - Other provisions for counterparty risk 3 1 0 0 -1 3
Provisions for risks other than counterparty risks
- provisions for post-employment benefits 118 3 -3 -1 8 127 - provisions for disputes 23 19 -1 -3 10 51 - provision épargne logement home purchase savings schemes 68 9 -1 -2 -2 75 - provision tax 116 9 0 -1 -1 124 - provisions for other contingencies 45 8 -9 -4 -13 31 - Other provisions for contigneies and liabilities* 105 33 -1 -36 -36 101
TOTAL 620 112 -36 -62 -60 637
Commitments on post-employment benefits and similar
Opening balance
Allowance for
financial yearWrite-back for financial year variationsOther Balance at close Defined benefit pension commitments and equivalent, outside standard caisses de retraite
pensions schemes
End of career indemnity 38 3 -2 0 40
Top-up pensions 47 0 -1 0 46
28 0 0 0 28
Sub-total 113 3 -3 0 113
Defined benefit pension commitments provided by group pensions schemes
Provisions for shortfalls in pension schemes and equivalent 4 0 0 9 13
Sub-total 4 0 0 9 13
Commitments with respect to early retirement of employees
Commitments 1 0 -1 0 0
Sub-total 1 0 -1 0 0
TOTAL 118 3 -4 9 127
NOTE 26 - Subordinated debt
June 30, 2008 Dec 31, 2007
Subordinated debt 4 088 3 552
Equity loans 156 156
Non-fixed term subordinated debt 2 957 2 957
Other debt 0 0
Attached debt 169 84
TOTAL 7 369 6 748
Main subordianted debt
Type Date Amount Amount Rate Maturity Issuance Issuance end of year
Banque Fédérative du Crédit Mutuel TSR 50 M€ 50 M€ 5,40 29.06.2011 Banque Fédérative du Crédit Mutuel TSR 700 M€ 700M€ 6,50 19.07.2013 Banque Fédérative du Crédit Mutuel TSR 800 M€ 800 M€ 5,00 30.09.2015 Banque Fédérative du Crédit Mutuel TSS 1600 M€ 1600 M€ indéterminate Banque Fédérative du Crédit Mutuel TSR 19.12.06 1000 M€ 1000 M€ g 19.12.2016 Banque Fédérative du Crédit Mutuel TSR 18.12.07 300 M€ 300 M€ h 18.12.2015 Banque Fédérative du Crédit Mutuel TSR 16.06.08 300 M€ 300 M€ i 16.06.2016 CIC TSR 19.07.01 300 M€ 300 M€ a 19.07.2013 CIC TSR 30.09.03 350 M$ 350 M$ b 30.09.2015 CIC Participatif 28.05.85 137 M€ 137 M€ c d CIC TSDI 30.06.06 200 M€ 200 M€ e
CIC TSDI 30.06.06 550 M€ 550 M€ f
NOTE 27 - Shareholders' equity - attributable share
June 30, 2008 Dec 31, 2007
. Capital 1 302 1 302
Bonuses related to médailles du travail (Length of service bonus and other equivalents)
In the calculation of post-employment benefits and equivalent, the assumption is made of a discount rate equal to the long tem yield on government bonds. These assumptions are reviewed annually and by country, taking into consideration regulatory conditions
The AFB industry branch agreement of March 29, 2005 and the law on social security finance of 2007 promulgated on December 22, 2006 formed part of this review.
a Euribor 3 months + 89.5 basis points b Libor USD 6 months + 55 basis points
c Minimum 85% (TAM+TMO)/2 Maximum 130% (TAM+TMO)/2
d Non amortizable, but reimbursable at borrower discretion with effect from May 28,1997 at 130% nominal revalued by 1.5% annually for subsequent years e Euribor 6 months + 167 basis points
f Euribor 6 months increased by 107 basis points in the first ten years and for the following years and failing early redemption increased by 207 basis points. g Euribor 3 months + 25 basis points
h Yield on state borrowing + 0.88 basis points i Yield on state borrowing plus + 1.20 basis points
NOTE 28 - Commitments given and received
Commitments given June 30, 2008 Dec 31, 2007
Commitments given
Finance commitments, commitments to credit institutions 1 649 1 498 Commitments to customers 29 941 30 485
Sureties
Commitments from credit institutions 956 971 Commitments from customers 11 640 12 212
Commitments on securities
Securities acquired under repurchase agreement 0 0 Other commitments given 4 116 1 796
Commitments received from insurance activities 383 361
Commitments received June 30, 2008 Dec 31, 2007
Finance commitments
Commitments received from credit institutions 5 720 4
Sureties
Commitments received from credit institutions 18 680 18 177
Commitments on securities
Securities acquired under repurchase agreements 0 0 Other commitments received 5 223 891
Commotments received from insurance activity 0 7 188
NOTE 29 - Interest and equivalent interest and expenditure
Income Expenditure Income Expenditure . Credit institutions and Central Banks 2 921 -3 132 2 697 -3 558 . Customers 2 993 -962 2 404 -756 . Finance leasing 1 101 -931 1 029 -889 . Financial assets, liabilities at fair value hedge or fair value
through profit and loss 0 0 0
. Derivative hedging instruments 833 -834 507 -499 . Available-for-sale financial assets 498 447 0 . Financial assets held to maturity 11 12 0 . Securitized debt payables -2 333 0 -1 842
. Subordinated debt -101 0 -80
TOTAL 8 357 -8 294 7 097 -7 625
NOTE 30 - Commissions
Income Expenditure Income Expenditure
Credit institutions 4 -2 4 -3
Customers 351 -8 319 -8
Securities 347 -47 397 -50
Derivative instruments 2 -6 2 -4
Foreign exchange 8 -4 9 -3
Finance and guarantee commitments 2 -3 1 -3
Services 421 -333 389 -342
TOTAL 1 134 -403 1 121 -413
1st half 2008 1st half 2007
NOTE 31 - Gains or losses on financial instruments at fair value through profit or loss
1st half 2008 1st half 2007
Trading instruments 972 1 896
Fair value hedging instruments -202 223
Hedging inefficiency 14 -69
Forex results -4 35
Total changes in fair value 780 2 085
Including trading derivatives 778 -284
NOTE 32 - Gains or losses on available-for-sale financial assets
Dividends gains/losses Capital impairment Total . Government securities, bonds and other fixed income securities -4 0 -4 . Equities and other variable income securities 3 1 -10 -6 . Capitalized securities 69 3 -14 57
. Other 0 0 0 0
TOTAL 72 0 -25 47
Dividends Capital
gains/losses impairment Total . Government securities, bonds and other fixed income securities 14 1 15 . Equities and other variable income securities 8 25 0 33 . Capitalized securities 39 81 -2 118
. Other 0 3 0 3
TOTAL 47 123 -1 169
NOTE 33 - Income/expenses from other activities
1st half 2008 1st half 2007
Income from other activities
. Insurance contracts: 3 220 5 209 - premiums received 3 490 4 023 - net income from investment -286 1 148 - technical and non-technical income 15 38
. Investment property: 2 1
. Other income 87 100
Sub-total 3 307 5 308
Expenses on other activities
. Insurance contracts: -2 724 -4 707 - service charges -2 107 -1 825 - changes in provisions -625 -2 879 - technical and non-technical charges 8 -2
. Investment property: -9 -6
- allowance for provisions/amortization (depending on process adopted) -9 -6
. Other expenses -53 -23
Sub-total -2 786 -4 735
Total net income / Other expenses 522 574 (1) Of which conditional rents
NOTE 34 - General operating expenses
1st half 2008 1st half 2007
Payroll expenses
Salaries and remunerations -562 -557 Social security expenses -218 -257
Employment benefits -7 -8
Employee profit sharing and incentives -61 -69 Taxes and similar payments on compensation -76 -49
1st half 2007 1st half 2008
Average numbers employed
1st half 2008 1st half 2007
Bank technicians 15 626 15 789
Management 9 691 9 318
TOTAL 25 317 25 107
NOTE 35 - Allowance / reversals of amortization and provisions for tangible and intangible assets
1st half 2008 1st half 2007 Amortization: -76 -70 - tangible assets -73 -69 - intangible assets -3 -1 Depreciation: 0 0 - tangible assets 0 0 - intangible assets 0 0 TOTAL -76 -70
Intangible assets include droit au bail (lease transfer fees) deemed indeterminate and for this reason not amortized. But in the same way as other fixed assets, lease transfer fees are subject to impairment testing
NOTE 36 - Cost of risk
Allowance Reversals Irrecoverable debt hedged
Irrecoverable debt non-hedged Recovery of receivables after write-down TOTAL Credit institutions 0 0 0 0 0 0 Customers -384 325 -83 -9 5 -146 . Lease finance -1 2 -2 -2 0 -2 . Other customers -383 323 -81 -7 5 -144 Sub total -384 325 -83 -9 5 -146 HTM - DJM 0 3 0 0 0 3 AFS - DALV -3 6 -8 0 0 -6 Other -30 38 0 0 0 8 TOTAL -418 372 -91 -10 5 -141
NOTE 37 - Gains or losses on other assets
1st half 2008 1st half 2007 Tangible and intangible assets 4 3 . Capital losses on disposal -3 -10 . Capital gains on disposals 7 13 Capital gains/losses on consolidated securities on disposal 0 0
TOTAL 4 3
NOTE 38 - Corporate income tax
Breakdown of tax charges
1st half 2008 1st half 2007
Tax charge due -131 -345
Tax charge deferred 47 -26
Impact of changes in tax rate on deferred taxation 0 0
Prior period adjustment 3 -1
TOTAL -80 -372
The group made up of CIC, the regional banks, and the main subsidiaries (more than 95% owned ) form a group for tax consolidation purposes. Each regional bank in the group sets up a sub-group on an agreed basis with its own subsidiaries.
NOTE 39 - Earnings per share
1st half 2008 1st half 2007
Net attributable profit 273 862
Number of shares at start of financial year 26 043 845 26 043 845 Number of shares at end of of financial year 26 043 845 26 043 845 Weighted average number of shares 26 043 845 26 043 845 Basic earnings per share 10,48 33,10 Annual weighted number of shares available for issuance 0 0 Earnings per share after dilution 10,48 33,10
NOTE 40 - Transactions with related parties
Companies consolidated by equity method Confédération Nationale Parent companies group CMCEE Companies consolidated by equity method Confédération Nationale Parent companies group CMCEE Assets
Loans, advances and securities loans to and receivables from
Credit institutions 0 10 79 999 0 25 74 293 Loans to and receivables from customers 0 30 0 0 19 0
Securities 0 100 3 0 319 5
Other assets 0 0 0 0 0 0
Total 0 140 80 002 0 363 74 297
Liabilities Deposits
Due to credit institutions 0 4 534 39 453 0 2 146 40 874 Customer deposits 0 19 0 0 17 0 Securitized debt payments 0 231 0 0 362 0 Other liabilities 0 107 1 263 0 7 1 250 Total 0 4 890 40 716 0 2 531 42 125 Finance and guarantee commitments
Finance commitments given 0 0 0 8 0 0 Guarantee commitments given 0 0 0 14 0 0
Finance commitments received 0 0 0 0 0 0 Guarantee commitments recived 7 47 214 0 42 196
Elements of profit and loss relating to transactions with related parties
Companies consolidated by equity method Confédération Nationale Parent companies group CMCEE Companies consolidated by equity method Confédération Nationale Parent companies group CMCEE Interest received 0 0 1 588 0 6 1 206 Interest paid 0 -80 -817 0 -47 -692 Commissions received 0 0 1 0 0 -1 Commissions paid 0 -6 -111 0 -5 -105
Other income and expenditure 2 -84 1 2 -71 4
General expenses 0 0 -15 0 0 -12
Total 2 -170 648 2 -116 400
June 30, 2008 Dec 31, 2007 June 30, 2008 Dec 31, 2007
The National Confederation is made up of the central organs of Crédit Mutuel and the other national federations of theCrédit Mutuel not affiliated to the CMCEE. The relationships with the parent companies are mainly those arising from loans and borrowings within the framework of treasury management.