First half 2008
Net income - Group share: E968m
Tier 1 ratio: 8.9%
Good performance from the Group's traditional business lines
Corporate and investment banking activities still affected by the crisis
Crédit Agricole S.A.'s Board of Directors, chaired by René Carron, met on 27 August 2008 to review the accounts for the first half of 2008. Crédit Agricole S.A. generated net income (Group share) of E968 million, after a E1,339 million negative impact in Corporate and investment banking due to the worldwide financial crisis.
Net income (Group share) was E76 million in the second quarter. It was severely impacted by the deterioration of the monolines' financial strength. Excluding Corporate and investment banking and restated for the LCL competitiveness plan, for which charges were booked in the second quarter of 2007, the drop in net income (Group share) was limited to 18.9% compared to the same year-ago period.
Against a background of serious financial crisis in the first half, Crédit Agricole S.A.'s traditional business lines - French and international retail banking and specialised business lines - turned in a performance which can generally be seen as amongst the best in the market. Combined net banking income for these business lines grew by 6.5% year-on-year in the first half, while pre-tax income was up 0.9% and net income (Group share) was nearly stable (down 0.8%).
In retail banking, net banking income increased by 16.1% year-on-year in the first half, reflecting a robust business performance both in France and abroad as well as strong organic growth internationally.
The small decrease in net banking income in the Specialised business lines was confined to just 1.4% on a high basis of comparison in the first half of 2007, demonstrating their resilience in a deteriorating market environment.
In keeping with the announcements made in the spring, cost-cutting measures brought down expenses by 2% year-on-year (by 0.5% on an unchanged consolidation basis).
excluding Corporate and investment banking, which registered an increase in collective provisions and impairment charges for counterparty risks, risk-related costs remained low, up by a modest 6.1%, on a like-for-like basis.
The effects of the ongoing crisis were, this quarter, concentrated on monolines, which saw further deterioration in their financial situation which had an impact of E693 million on net income in Corporate and investment Banking in the second quarter and E1,339 million in the first half, including impairment charges for CDOs recognised in the first quarter. Further to analysing the effects of 12 months of ongoing international financial crisis on the structure of Calyon's recurring Corporate and investment banking operations, a refocusing plan has been developed and will be unveiled on 10 September 2008.
In June, Crédit Agricole S.A. successfully carried out a E5.9 billion capital increase to strengthen its solvency ratios and to take into account the risks inherent in the current troubled economic environment. The rights issue was a resounding success with both institutional investors and retail shareholders and the free float was 130% over-subscribed. The capital increase enhanced the bank's financial strength, lifting shareholder's equity (Group share) to E41.9 billion. Crédit Agricole S.A. is now one of the leading European banks, ranked by Tier 1 ratio (8.9%) and Core Tier 1 ratio (6.5%).
In keeping with the commitments it made at the time of the rights issue, Crédit Agricole S.A. has immediately begun to implement the announced measures and is already seeing the first results with expenses down by 0.5% on a like-for-like basis, disposal of the stake in MasterCard in July as one of the first transactions under the active portfolio management policy, and refocusing of Calyon business activities under way.
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At the end of the Board of Directors meeting, Chief Executive Officer Georges Pauget said: " Crédit Agricole S.A. confirmed the strength of its business model and the good performance delivered by our traditional business lines should be underlined. In Corporate and investment banking, which is still suffering from the impact of the worldwide financial crisis, as announced at the time of our capital increase, we have initiated important steps to cut costs and to refocus the business. We will present the Calyon transformation and development plan on 10 September 2008."
René Carron, Chairman, noted: "The Group is underpinned by solid fundamentals. We are seeing healthy business momentum, both in France and abroad. The French retail banking line, which signed up 260,000 new customers, is a perfect example of this. I would like to take this opportunity to commend and thank all Group employees for their dedication and our shareholders for their loyalty. Their involvement was instrumental in making our capital increase a success, thereby further enhancing our Group's financial strength. "
2008 financial calendar
10 September 2008 Calyon Investor Day
13 November 2008 Third quarter results
CRÉDIT AGRICOLE S.A. CONSOLIDATED RESULTS
In a severely deteriorated business climate, Crédit Agricole S.A. showed that it has a robust base of earnings as a result of the extensive diversification of its business activities.
In the first half of 2008, net income (Group share) was E968 million. The bottom line was down largely as a result of the impact of the international financial crisis on Corporate and investment banking, which posted a loss of E1,339 million.
Apart from Corporate and investment banking, the traditional business lines delivered very solid performances with net banking income increasing by over 6% and net income (Group share) of E2 billion.
During the second quarter, net income (Group share), which was severely affected by the deterioration in the monoline's financial strength, came to E76 million. The decline in net income (Group share), excluding Corporate and investment banking and restated for the LCL competitiveness plan, was confined to 18.9% compared with the second quarter of 2007 owing to solid business momentum for the retail banks and good resilience for the specialised business lines.
| In Em | Q2-08 | Q2-07 | D Q2/Q2 | D Q2/Q2* | H1-08 | H1-07 | D H1/H1 | D H1/H1** | | Net banking income | 3,249 | 5,271 | (38.4 %) | (4.6 %) | 7,359 | 10,286 | (28.5 %) | + 6.5 % | | Operating expenses | (3,147) | (3,538) | (11.1 %) | + 7.1 % | (6,365) | (6,497) | (2.0 %) | + 4.8 % | | Gross operating income | 102 | 1,733 | (94.1 %) | (19.9 %) | 994 | 3,789 | (73.8 %) | + 8.8 % | | Risk-related costs | (365) | (211) | + 73.0 % | + 15.2 % | (811) | (434) | + 86.9 % | + 18.8 % | | Operating income | (263) | 1,522 | nm | (25.3 %) | 183 | 3,355 | (94.5 %) | + 6.9 % | | Equity affiliates | 205 | 268 | (23.5 %) | (25.5 %) | 548 | 647 | (15.3 %) | (19.1 %) | | Net gain/(loss) on disposal of other assets | 14 | 5 | x 2.8 | x 2 | 436 | 1,070 | (59.3 %) | nm | | Tax | 231 | (363) | nm | (43.6 %) | 26 | (843) | nm | + 4.5 % | | Net income | 185 | 1,428 | (87.0 %) | (19.2 %) | 1,191 | 4,221 | (71.8 %) | (0.2 %) | | Net income - Group share | 76 | 1,292 | (94.1 %) | (18.9 %) | 968 | 3,947 | (75.5 %) | (0.8 %) | | | | | | | | | | |
* Excluding Corporate and investment banking and LCL competitiveness plan
** Business lines results excluding Corporate and investment banking
Net banking income declined by 28.5% to E7,359 million in the first half, including impairment charges of E1,998 million directly related to the US residential mortgage crisis. Hence, the impact of the crisis on Corporate and investment banking detracts from the positive trends for the Retail banking and Specialised business lines.
In Retail banking, net banking income rose by 16.1%, reflecting robust business in France and abroad.
The fall in net banking income for the Specialised business lines was confined to 1.4% on a high basis of comparison in the first half of 2007, demonstrating their resilience in a deteriorated market environment.
In the second quarter, net banking income was E3,249 million. Excluding Corporate and investment banking, NBI declined by less than 5%.
Operating costs amounted to E6,365 million, including E3,147 million in the second quarter, down 2% on the first half of 2007. On a like-for-like basis and excluding the provision booked in 2007 for the LCL 2007-2010 competitiveness plan, operating costs declined by 0.5%, reflecting the initial results of the cost stabilisation component of the action plan announced in the second quarter.
Gross operating income came to E994 million in the first half of 2008, a rise of 8.2% excluding Corporate and investment banking and the 2007 LCL competitiveness plan.
The net charge for risk-related costs was E811 million in the first half, primarily due to the increase in collective provisions for Financing activities and impairment charges for counterparty risks in Capital markets and investment banking. Excluding Corporate and investment banking, risks-related costs remained low at E521 million, a rise of 6.1% on the second half of 2007 (on a like-for-like basis).
The contribution from equity affiliates amounted to E548 million in the first half. It includes the Regional Banks' contribution (E438 million), which declined by 5.5% owing to a high basis of comparison in 2007 and to the continued application of a conservative loan loss provision policy. The fall in BES's contribution, which stood at E34 million in the first half is partially due to the Portuguese bank's lower earnings.
Net income from other assets (E436 million) was mainly composed of the gain generated by the creation of Newedge (E435 million), which was registered in the first quarter.
In total, Crédit Agricole S.A.'s net income (Group share) came to E968 million in the first half of 2008.
FINANCIAL POSITION
At 30 June 2008, Crédit Agricole S.A.'s equity capital stood at E74,8 billion, after the capital increase completed in early July. It includes a E3.6 billion shareholder's advance, as announced at the beginning of the year, pending deployment within the Group of the definitive system for treating minority interests under Basel II.
Shareholders' equity, Group share, stood at E41,9 billion after the capital increase, compared with E40.7 billion at 31 December 2007. Before the capital increase, the E4.6 billion decline during the first half was due primarily to lower unrealised gains on the portfolio of assets available for sale.
Risk-weighted assets stood at E320.6 billion at end-June 2008.
At 30 June 2008, the Group's CRD solvency ratio was 9.6% and the Tier One ratio was 8.9%. The Core Tier One ratio was 6.5%.
RESULTS BY BUSINESS LINE
1. FRENCH RETAIL BANKING
1.1. - CRÉDIT AGRICOLE REGIONAL BANKS
Business momentum remained solid for the Regional Banks in the first half of 2008. They contributed E342 million to Crédit Agricole S.A.'s net income (Group share).
| Em | Q2-08 | D Q2/Q2 | D Q2/Q1 | H1-08 | D H1/H1 | | Net income accounted for at equity (at 25%) | 118 | (1.2%) | (31.9%) | 292 | (8.7%) | | Change in share of reserves | 49 | + 48.6% | (50.5%) | 146 | +1.7% | | Income from equity affiliates | 167 | + 9.9% | (38.3%) | 438 | (5.5%) | | Tax* | (27) | + 66.5% | (61.5%) | (96) | +10.8% | | Net income | 140 | +3.2% | (30.2%) | 342 | (9.2%) |
* Tax impact of dividends received from the Regional Banks.
In the second quarter of 2008, aggregate net banking income (under IAS) of the 38 equity-accounted Regional Banks was 5% higher than in the same year-ago period. In the first half, it amounted to E7,054 million, a rise of 0.2% in an unfavourable monetary and financial climate and on a high basis of comparison in 2007.
The Regional Banks delivered a solid business performance over the period.
The national advertising campaigns contributed to the success and innovation continued in all segments of retail banking to open up the range of products and services to new customers and to meet their needs at all stages in life. The new-generation "Debit/Credit" card - the first combined debit/credit bank card in France - rolled out by all the Regional Banks from June holds substantial promise for the second half in the retail customer segment.
The business franchise expanded, with 200,000 new accounts opened during the first half, mainly by younger customers. This accomplishment was underpinned by the 59 new branches opened over the period and by a further increase in front office staff, which rose by 1 percentage point to 72% of total headcount over the period.
Customer deposits: growth in customer assets at the Regional Banks, which moved up 0.4% year-on-year to E488.5 billion, was held down by poor financial market conditions.
On-balance sheet deposits rose by 4.5% year-on-year, driven by robust growth in risk-free liquid savings products offering attractive returns.
Off-balance sheet customer deposits declined by 3.9%. Securities were down 13.2% year-on-year owing to the plunge in the stock market over the period and to lower investments in equities. By contrast, growth in life insurance was 3.4%, above the market trend.
Lending business remained brisk in the first half of 2008, especially in the farming and local authority segments, with a volume of E33 billion (down 2.3% on the first six months of 2007).
Loans outstanding continued to show growth, rising by 10.1% year-on-year to E339.9 billion. Growth in loans to business customers and local authorities accelerated to 16.3% and 14.9% respectively, confirming the role that the Regional Banks play in regional development.
Revenues from customer business moved up 1.3% in the first half year-on-year, excluding changes in provisions for home purchase savings plans. This reflects the efforts to boost business initiated by the Regional Banks in 2006. Fee income was 5.9% higher than in the first half of 2007, owing to persistently strong growth in insurance (up 9.0%), particularly non-life insurance, and in the penetration rate among existing customers.
Despite substantial investments in the branches and in the development of multi-channel products (telephone, internet, etc.), operating expenses remained under control, stable at 0.1% year-on-year to E3,519 million, including E1,786 million in the second quarter.
As a result, the Regional Banks' cost/income ratio moved up by 0.4 percentage point year-on-year in the first half to 59.5% (based on NBI before dividends and similar income received from Crédit Agricole S.A.).
Aggregate gross operating income came to E2,393 million (based on aggregate IFRS data adjusted for dividends and similar income received from Crédit Agricole S.A.). It was down 1.5% on the first half of 2007 but up 2% after adjustments for changes in provisions for home purchase savings plans.
Risk-related costs amounted to E683 million in the first half. The Regional Banks maintained a stringent individual risk cover policy and further increased their collective provisions.
After consolidation of their subsidiaries' accounts and consolidation adjustments, the Regional Banks' share of net income was E438 million compared with E463 million in the first half of 2007. The Regional Banks business line's contribution to Crédit Agricole S.A.'s consolidated net income came to E342 million, a fall of 9.2%.
1.2. - LCL
During the first half of 2008, LCL confirmed the success of its repositioning.
The reorganisation of the retail networks and the development and competitiveness plans launched in 2007 bore fruit during the first two quarters of 2008.
| Em | Q2-08 | D Q2/Q2 | D Q2/Q2* | H1-08 | D H1/H1 | D H1/H1* | | Net banking income | 964 | +3.1% | +3.1% | 1,890 | +3.1% | +3.1% | | Operating expenses | (614) | (21.9%) | +0.5% | (1,259) | (11.8%) | +0.5% | | Gross operating income | 350 | x2.3 | + 8.2% | 631 | + 55.7% | + 8.9% | | Risk-related costs | (39) | + 16.1% | + 16.1% | (82) | +13.4% | +13.4% | | Operating income | 311 | x2.7 | + 7.2% | 549 | + 65.0% | + 8.2% | | Net income (Group share) | 206 | x2.8 | + 10.7% | 364 | + 63.0% | + 8.1% | | Cost/income ratio | 63.7% | (20.3 pts) | (1.7 pt) | 66.6% | (11.3 pts) | (1.8 pt) |
* Excluding impact of 2007 competitiveness plan
In terms of business performance, these reorganisations are already starting to pay off, with nearly 60,000 net new individual accounts opened during the first half of 2008 (compared with 40,000 in the first half of 2007), due primarily to several actions targeting young customers.
Growth in lending was a robust 11.7%, compared with 9.5% one year earlier. It was driven by strong momentum in lending to SMEs and small business customers, with a jump of 18.5% year-on-year. Growth in mortgage lending dipped to 9.8% from 11.2% in the first half of 2007 owing to the slowdown in the market and pressures on interest rates.
On- and off-balance sheet deposits were adversely affected by the international financial market crisis. They declined by 1.2% due to the 12.1% fall in securities and mutual funds held by customers. The crisis also affected life insurance, with growth in outstandings slowing to 4.6% from 10.3% in 2007. In this segment, LCL stood out, with a 14% jump in production in a declining market. On-balance sheet customer assets rose by 3.1%, mainly under the impetus of time deposits (up 29.4%) and passbook accounts (up 6.8%), while the decline in home purchase savings plans continued (down 11.5%).
Net banking income moved up 3.1% year-on-year at the end of the first half of 2008. Growth in the second quarter was the same as in the same period of 2007.
Excluding reversals of provisions for home purchase savings plans, year-on-year NBI growth was 4.3% in the first half, driven by a like increase in margins and fee income.
The interest margin was strengthened owing to the favourable interest rate climate, a recovery in margins on production and the rise in volumes.
Fee income reflected the highly negative impact of the worldwide stock market crisis on the securities and mutual fund business. This was partly offset by the franchise's solid momentum in insurance.
Operating costs were stable (up 0.5% year-on-year) excluding the E175 million charge to provisions for the 2007 competitiveness plan booked in the first half of 2007. They amounted to E1,259 million for the six months to 30 June 2008, including E614 million in the second quarter.
Excluding the competitiveness plan, the growth differential between NBI and operating expenses was 2.6% in the first half compared with 1.3% in the same year-ago period. As a result of this favourable scissors effect, gross operating income expanded by 8.9% year-on-year in the first half and the cost/income ratio showed further improvement: it contracted by 1.8 percentage point to 66.6%. In the second quarter of 2008, the cost/income ratio was 63.7%.
Risk-related costs rose by less than E10 million (13.4%) year-on-year in the first half (and by 16.1% year-on-year in the second quarter). This reflects an improvement in the loan cover rate in a climate of robust growth in lending. Risk-related costs were well-controlled, amounting to 32 basis points of risk-weighted assets.
LCL's net income (Group share) rose by 63% year-on-year to E364 million in the first half of 2008, by 8.1% excluding the impact of the 2007 competitiveness plan and by 12.7% when also adjusted for reversals from provisions for home purchase savings plans.
In the second quarter, net income (Group share) increased by nearly 11% to E206 million, excluding the impact of the competitiveness plan.
2. INTERNATIONAL RETAIL BANKING
During the first half of 2008, the International retail banking business line delivered robust organic growth.
Net banking income rose by over 36% year-on-year to E1,597 million in the first half. This reflects the change in the business line's scope of consolidation, and more specifically, the construction of the Italian network.
In the second quarter, net banking income grew by 4.3% on the first quarter, reflecting the network's business momentum in a climate of economic deterioration.
| Em | Q2-08 | D Q2/Q2 | D Q2/Q1 | H1-08 | D H1/H1 | | Net banking income | 815 | +16.7% | + 4.3% | 1,597 | + 36.4% | | Operating expenses | (523) | + 13.7% | +0.5% | (1,044) | + 35.9% | | Gross operating income | 292 | + 22.6% | + 11.9% | 553 | + 37.4% | | Risk-related costs | (92) | + 27.7% | (6.0%) | (191) | + 38.8% | | Operating income | 200 | + 20.4% | +22.8% | 362 | + 36.6% | | Equity affiliates | 1 | (98.4%) | (96.4%) | 40 | (67.7%) | | Pre-tax income | 201 | (21.0%) | 0.0% | 402 | +3.4% | | Net income (Group share) | 96 | (35.3%) | (12.2%) | 205 | (7.3%) | | Cost/income ratio | 64.2% | (1.7 pt) | (2.4 pts) | 65.3% | (0.3 pt) |
In Italy, the Cariparma FriulAdria group delivered strong positive results during a highly turbulent period.
With a presence in 9 regions and 46 provinces where it holds leadership positions, Cariparma FriulAdria has a leading position in Italy. The branch network is expanding rapidly, with a total of 745 branches[3] at 30 June 2008, including 20 opened during the first half. At the same time, existing structures were reinforced and the Italian operations now encompass all Group business lines.
Cariparma FriulAdria's results confirm the group's growth potential. Net banking income was E768 million in the first half and gross operating income was E354 million, 9% higher than in the second half of 2007. Net income (Group share) rose by 15% to E138 million.
In the second quarter, the entity generated net banking income of E381 million, gross operating income of E174 million and net income (Group share) of E67 million.
Emporiki continued its restructuring in a deteriorating market.
In Greece, the bank is consolidating its domestic positions in a highly competitive market, with loans outstanding up 18% on the first half of 2007 and a 7% rise in deposits. Emporiki also continued to deploy the strategy targeting business customers by opening dedicated centres. Alongside this improvement in business, Emporiki is continuously enhancing the quality of customer service through automation, centralisation and scaling up of "key" banking operations.
The bank's ambitions in the south-eastern European markets are also being fulfilled, with a network of nearly 80 branches, which are being upgraded to Group standards. Corporate business is vigorous and benefits from good cross-selling.
Emporiki's contribution to net income in the first half was adversely affected by poor market conditions, especially during the first quarter. Net banking income was E375 million in the first half, including E197 million in the second quarter reflecting the bank's better resilience during this period.
Net income (Group share) was a loss of E16 million, most of it generated in the first quarter; the loss in the second quarter amounted to E2 million.
The Group's entities in countries other than Italy and Greece posted solid business performances. Net banking income from the entities in Africa and the Middle East grew by over 10% in the first half (11% in the second quarter) and the Eastern European entities all delivered double-digit growth as well.
In total, owing to tightly controlled costs, the business line's gross operating income expanded by 37% year-on-year to E553 million in the first half of 2008. In the second quarter, gross operating income came to E292 million, a rise of 23%.
Risk-related costs also increased, in line with the business line's development, by 39% to E191 million in the first half and by 28% to E92 million in the second quarter.
Income from equity affiliates was truncated by the fall in the contribution from BES, due mainly to lower earnings from the Portuguese bank and to the treatment of pension obligations in Crédit Agricole S.A.'s accounts.
The business line's overall net income (Group share) was E205 million in the first half of 2008, down 7.3% on the first half of 2007. Net income (Group share) was E96 million in the second quarter.
3. SPECIALISED FINANCIAL SERVICES
During the first half of 2008, Specialised financial services turned in a respectable performance in a rather unfavourable business climate.
Net banking income for the business line was E1,470 million, about the same as in the first half of 2007. On a like-for-like basis[4], it moved up 2.4%, year-on-year, driven by growth for the entities abroad, whose NBI expanded by over 9%.
The business line's gross operating income edged down 2.5% to E672 million, owing to a modest 2.1% increase in operating costs.
The rise in risk-related costs was confined to E268 million in the first half.
Net income (Group share) came to E253 million in the first half, down nearly 14%. On a like-for-like basis, the decline was less than 3%.
In the second quarter, net income (Group share) was E135 million, down 5% on the same year-ago period.
| Em | Q2-08 | D Q2/Q2 | D Q2/Q1 | H1-08 | D H1/H1 | D H1/H14 | | Net banking income | 744 | +0.2% | +2.6% | 1,470 | 0.0% | +2.4% | | Operating expenses | (402) | +2.3% | + 1.5% | (798) | +2.1% | +3.5% | | Gross operating income | 342 | (2.1%) | + 3.9% | 672 | (2.5%) | + 1.2% | | Risk-related costs | (127) | +2.0% | (9.2%) | (268) | +8.6% | +9.4% | | Operating income | 215 | (4.5%) | + 13.7% | 404 | (8.7%) | (3.6%) | | Equity affiliates | 2 | +60.0% | +20.0% | 4 | +37.5% | +37.5% | | Net gain/(loss) on disposal of other assets | 0 | n.m. | n.m. | 1 | (96.1%) | (83.0%) | | Pre-tax income | 217 | (5.6%) | +13.1% | 409 | (12.7%) | (4.3%) | | Net income (Group share) | 135 | (5.1%) | + 13.7% | 253 | (13.7%) | (2.7%) | | Cost/income ratio | 54.0% | + 1.1 pt | (0.6 pt) | 54.3% | + 1.1 pt | + 0.6 pt |
In consumer credit, the Group defended its leadership positions and continued to develop its sources of growth.
Abroad, the Group continues to expand by building leading positions. In Italy, in late April 2008, the Group entered into an agreement with Banco Popolare to merge the two consumer finance subsidiaries, Agos and Ducato. This will lead to the creation of Italy's largest consumer credit company, subject to approval by the relevant authorities.
In the Nordic countries, a new international partnership in auto finance was created with the Ford group at the end of the first half[5]. The Forso Nordic AB joint venture operates in four countries: Sweden, Norway, Denmark and Finland.
In France, innovation continued, for example with the addition of new benefits to the Kangourou card and by the development of portability, with the www.finaref.fr website now available via mobile phone.
Consumer loan production grew by 4.4% year-on-year to E16.7 billion in the first half. Outstandings rose by 10.1% to E62.5 billion at 30 June 2008.
On a like-for-like basis, outstandings expanded by 8%. This growth was primarily driven by the international entities, which accounted for more than 56% of total outstandings at 30 June 2008 and delivered robust growth of 13% year-on-year and 9.6% on a like-for-like basis.
Net banking income for the consumer credit business was E1,226 million in the first half of 2008 (E622 million in the second quarter), a modest decline of 1.5% on the first half of 2007 and of 1.2% on the second quarter of 2007. It accounted for some 83% of the SFS business line's net banking income.
In lease finance, the Group delivered a solid business performance during the first half, with a 23.7% rise in aggregate production, pushing up outstandings to over E14 billion. Over the same period, net banking income advanced by 13.4% and costs remained under control. Although risk-related costs increased from a low basis of comparison in the first half of 2007, net income in this segment jumped 40% to E28 million. Quarter-on-quarter, growth was 51%, with net income (Group share) of E14 million in the second quarter of 2008.
In factoring, business continued to grow in a still developing market. Factored receivables expanded by 8.3% year-on-year to E21.7 billion in the first half of 2007. Net income in this segment was virtually stable, edging down 1.2% to E25 million in the first half of 2008 (second quarter: E14 million).
4. ASSET MANAGEMENT, INSURANCE AND PRIVATE BANKING
With a sustainable base of recurring revenues derived from the Group's bank franchises, the Asset management, Issuer services, Insurance and Private banking business line proved to be extremely resilient to the downturn.
| Em | Q2-08 | D Q2/Q2 | D Q2/Q1 | H1-08 | D H1/H1 | | Net banking income | 1,058 | (7.8%) | (3.6%) | 2,156 | (2.3%) | | Operating expenses | (470) | + 7.2% | (2.9%) | (954) | +6.8% | | Gross operating income | 588 | (17.1%) | (4.1%) | 1,202 | (8.5%) | | Risk-related costs | 9 | x2 | n.m. | 3 | (16.7%) | | Operating income | 597 | (16.4%) | (2.0%) | 1,205 | (8.5%) | | Equity affiliates | 1 | n.m. | n.m. | 2 | (80.0%) | | Pre-tax income | 598 | (16.3%) | (1.8%) | 1,207 | (8.8%) | | Net income (Group share) | 415 | (8.7%) | (0.1%) | 831 |
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| Jeudi 28 août 2008 / 6h57 |
Provided by: Hugin |
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